Date: October 16, 2006
Source: Van Eck Global
New York-based investment advisor Van Eck Global has introduced an exchange-traded fund (ETF) based on the fast-growing environmental services sector. The fund, called Environmental Services ETF (EVX) will track the newly created Amex Environmental Services Index (AXENV), which is primarily comprised of well known waste management and environmental service companies. It currently represents 24 companies with a combined market capitalization of about $129 billion and on a back-tested basis, the index would have delivered an annualized total return of about 24.5 percent over the three years ending September 30, 2006.
For more information, visit: www.vaneck.com/etf/index.cfm?cat=3020.
The American Stock Exchange® (Amex®) together with New York-based investment adviser Van Eck Global today introduced two new exchange-traded funds (ETFs), under Van Eck's Market Vectors(TM) brand: the Market Vectors - Environmental Services ETF (Amex: EVX - News) and the Market Vectors - Steel ETF (Amex: SLX - News). The new ETFs are the first such products to target these industries, both of which have significantly outpaced the broader equity markets in recent years. Options on the new ETFs are listed on the Amex.
"The Amex is delighted to partner with Van Eck Global to bring these exciting new ETFs to the marketplace," said Cliff Weber, Senior Vice President of the Amex's ETF marketplace. "We are extremely pleased to have been selected by Van Eck Global to list these ETFs, which are a welcome addition to our family of innovative products."
The Amex Specialist for the two new ETFs and for the related options is Kellogg Capital Group, LLC.
The launches extend Van Eck's ETF product line, which was established in May 2006 with the introduction of the Market Vectors - Gold Miners ETF (Amex: GDX - News), the nation's first and only ETF that seeks to track, before fees and expenses, gold mining shares as represented by the Amex Gold Miners Index (GDM). GDX volume has averaged over approximately 600,000 shares a day and had assets of approximately $260 million as of October 12, 2006.
Market Vectors - Environmental Services ETF (EVX)
EVX seeks to track, before fees and expenses, the newly created Amex Environmental Services Index (AXENV), which is comprised primarily of companies engaged in waste management and other environmental services. On a back-tested basis, AXENV has delivered an annualized total return of approximately 24.5 percent over the three years ending September 30, 2006 and approximately 15.4 percent over the five years ending September 30, 2006. The companies that comprise the index have shown an approximate 16.9 percent average revenue growth over the past five years.
The index is currently comprised of 24 companies with a combined market capitalization of approximately $129 billion. The ADRs of two foreign firms are represented in the index. Their combined weight in the index is approximately 20 percent. A complete EVX constituent list can be found at www.vaneck.com/evx. The index includes dominant players in the environmental services industry, such as Republic Services Inc. and Waste Management, Inc., as well as more specialized companies such as waste-to- energy provider Covanta Holding Corp., and aluminum recycler Aleris International Inc.
"The environmental services industry has shown strong revenue growth in the past five years as people worldwide have grown increasingly concerned about environmental matters," said Adam Phillips, Director-ETF Sales, Van Eck Global. "We also believe investors are becoming more familiar with this relatively young industry and developing a greater appreciation for its investment opportunities and potential."