Market Vectors® Announces the Launch of ChinaAMC SME-ChiNext ETF (CNXT)

Market Vectors ETF Trust has launched the Market Vectors ChinaAMC SME-ChiNext ETF (NYSE Arca: CNXT), a new fund which seeks to provide exposure primarily to China’s market of innovative, non-government owned companies, it was announced today. Through a partnership with ChinaAMC, the fund will invest directly in China A-Shares.

CNXT seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the SME-ChiNext 100 Index. This index is intended to track the performance of the 100 largest and most liquid stocks listed and trading on the Small and Medium Enterprise (SME) Board and the ChiNext Board of the Shenzhen Stock Exchange (SZSE). Often viewed as mainland China’s NASDAQ, the SME Board was established in 2004 under SZSE and acts as an exchange platform for mainly mature or maturing small- and medium-sized companies in China. The ChiNext Board, a wholly-owned but independent arm of SZSE, began trading operations in 2009 and has focused primarily on start-ups and growth companies. As of June 30, 2014, a total of 720 companies were listed on the SME Board with a combined market value of $648.58 billion, while 381 companies traded on the ChiNext Board with a combined market value of $298.42 billion1.

ChinaAMC is currently China’s largest asset manager in terms of fund assets under management and will serve as sub-advisor to CNXT using a Renminbi Qualified Foreign Institutional Investor (RQFII) quota that it has received to invest in China A-shares. This marks the second ETF for which Market Vectors and ChinaAMC have partnered in this way, joining Market Vectors ChinaAMC A-Share ETF (NYSE Arca: PEK).

“We’re very excited to bring a unique vehicle like CNXT to market as part of our growing relationship with ChinaAMC,” said Amrita Bagaria, ETF Product Manager with Market Vectors. “The Chinese government appears to recognize that small, non-government backed firms often struggle to access capital because large banks generally do not offer them financing2. As such, the SME and ChiNext Boards were established to help promote private innovation in the public markets3, and this new fund gives investors a liquid, transparent way to gain access to some of these growing companies.”

Bagaria added that at the start of 2014, SMEs in China were contributing 60% of the country’s GDP, 80% of its employment, and 74% of its technological innovation, according to the World Trade Organization. “The information technology, consumer discretionary and staples, and health care sectors are driving what has been called China’s ‘New Economy’,” said Bagaria. “They are among the top sectors represented in the underlying index for CNXT.”

Market Vectors notes that investing in Chinese securities, particularly A-shares, comes with associated risks, which include adviser and sub-adviser risk, risk of the RQFII regime, political and economic instability, inflation, confiscatory taxation, nationalization, expropriation, and market volatility. In addition, the Fund is subject to risks associated with foreign and emerging markets investments including liquidity, valuation, currency, and non-diversification, among other risks. Companies with medium- and smaller-capitalizations are also subject to elevated risks.

CNXT has a gross and net expense ratio of 0.68 percent.

1 Shenzhen Stock Exchange
2 "China's Central Bank to Expand Loans to Small Businesses." Wall Street Journal, 26 July 2013. Web. <http://online.wsj.com/news/articles/SB10001424127887324110404578628904026769958>.
3 "About ChiNext." Shenzhen Stock Exchange, 2013. Web. <http://www.szse.cn/main/en/ChiNext/aboutchinext/>.

About Market Vectors ETFs

Market Vectors exchange-traded products have been offered since 2006 and span many asset classes, including equities, fixed income (municipal and international bonds) and currency markets. The Market Vectors family is one of the largest providers of ETFs in the U.S. and worldwide.

Market Vectors ETFs are sponsored by Van Eck Global. Founded in 1955, Van Eck Global was among the first U.S. money managers helping investors achieve greater diversification through global investing. Today, the firm continues this tradition by offering innovative, actively managed investment choices in hard assets, emerging markets, precious metals including gold, and other alternative asset classes. Van Eck Global has offices around the world and managed approximately $35.3 billion in investor assets as of June 30, 2014.

Market Vectors ChinaAMC SME-ChiNext ETF (“the Fund”) is subject to risks which include, among others, those associated with investments in Chinese securities, particularly A-Shares, adviser and sub-adviser risk, risk of the RQFII regime, political and economic instability, inflation, confiscatory taxation, nationalization, expropriation, and market volatility, all of which may adversely affect the Fund. Foreign and emerging markets investments are subject to risks, which include changes in economic and political conditions, foreign currency fluctuations, changes in foreign regulations, changes in currency exchange rates, unstable governments, and limited trading capacity which may make these investments volatile in price or difficult to trade. Small and medium-capitalization companies may be subject to elevated risks. The Fund’s assets may be concentrated in a particular sector and may be subject to more risk than investments in a diverse group of sectors.

Indices are unmanaged and are not securities in which an investment can be made.

Fund shares are not individually redeemable and will be issued and redeemed at their NAV only through certain authorized broker-dealers in large, specified blocks of shares called “creation units” and otherwise can be bought and sold only through exchange trading. Creation units are issued and redeemed principally in kind. Shares may trade at a premium or discount to their NAV in the secondary market.

Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider the investment objective, risks, charges and expenses of a Fund carefully before investing. To obtain a prospectus and summary prospectus, which contain this and other information, call 888.MKT.VCTR or visit marketvectorsetfs.com. Please read the prospectus and summary prospectus carefully before investing.

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