The Chicago Board Options Exchange® (CBOE®) has launched trading of options on Market Vectors-Nuclear Energy ETF (ticker: NLR), an exchange-traded fund. NLR options began trading on August 21.
NLR seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the DAXglobal® Nuclear Energy Index (ticker: DXNE). The index provides targeted exposure to companies worldwide that are engaged in various sectors of the nuclear industry—including uranium mining, nuclear plant infrastructure, uranium enrichment, uranium storage, nuclear generation, nuclear equipment and nuclear fuel transportation. The index was launched in July 2007 and includes many companies of global prominence—such as Areva, Cameco and Mitsubishi Heavy Industries.
The options trade on the January expiration cycle with initial expiration months of September, October, January and April. Strike prices range from 25 to 35 in one-point intervals. Position limits have been set at 25,000 shares. The Designated Primary Market Maker is Jane Street Specialists, LLC.
DXNE is published by Deutsche Börse Group. NLR shares trade on the American Stock Exchange® (Amex®) and Van Eck Associates Corporation is the investment adviser for NLR.
Prior to buying or selling an option, investors must read a copy of the Options Disclosure Document, which explains the characteristics and risks of exchange-traded options and can be found at www.optionsclearing.com/publications/risks/riskstoc.pdf.
About the Chicago Board Options Exchange®
CBOE®, the largest U.S. options marketplace and creator of listed options, is regulated by the Securities and Exchange Commission (SEC). Since founding the listed options business in 1973, CBOE® has been the leader in options volume every single year. In 2007, CBOE® options contract volume reached an all-time record of more than 944 million contracts. For more information on the CBOE®, please visit www.cboe.com.
About the DAXglobal® Nuclear Energy Index
The index is intended to give investors an efficient way to track the performance of equity securities of selected companies engaged in the nuclear energy industry. It is calculated using a modified market capitalization weighting methodology. The index is weighted based on the market capitalization of each of the component stocks, modified to conform to various asset diversification requirements, which are applied in conjunction with the scheduled quarterly adjustments to the Index. The value of the index is disseminated every 15 seconds between the hours of approximately 9:30 a.m. and 4:15 p.m. Eastern Time.
The DAXglobal® Nuclear Energy Index, a trademark of Deutsche Börse AG, is licensed for use by Van Eck Associates Corporation in connection with NLR. Deutsche Börse AG does not sponsor or endorse NLR and makes no warranty or representation as to the accuracy and/or completeness of the index or results to be obtained by any person from use of the index in connection with trading NLR.
About Deutsche Börse AG
Deutsche Börse Group offers more than a marketplace for trading shares and other securities. It is a transaction services provider with advanced technology to afford companies and investors access to global capital markets.
Deutsche Börse designs, calculates and disseminates more than 2,300 indices linked to its master brands DAX®, DAXplus® and DAXglobal®, making it one of the world’s most renowned index providers. These index products allow investors to cover international markets and global investment strategies in a highly transparent, rule-based and cost-effective manner.
About Van Eck Global
Founded in 1955, Van Eck Associates Corporation was among the first U.S. money managers helping investors achieve greater diversification through global investing. Today the firm continues the 50+ year tradition by offering global investment choices in hard assets, emerging markets, precious metals including gold, and other specialized asset classes.
Market Vectors exchange-traded products have been offered by Van Eck Global since 2006 when the firm launched the nation’s first gold mining ETF. Today, Market Vectors ETFs and ETNs span several asset classes, including equities, municipal bonds and currency markets.
Van Eck Global also offers mutual funds, insurance trust funds, separate accounts and alternative investments. Designed for investors seeking innovative choices for portfolio diversification, Van Eck Global’s investment products are often categorized in asset classes having returns with low correlations to those of more traditional U.S. equity and fixed income investments.
NLR is subject to risks associated with the stock market, index tracking, sector investing, investing in small- or mid-cap companies, replication management, non-diversified investments, absence of prior active market, trading issues, fluctuation of net asset value and risks of investing in nuclear energy investments. Because of their narrow focus, sector investments tend to be more volatile than investments that diversify across many sectors and companies.
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.
Investors may call 1.888.MKT.VCTR or visit www.vaneck.com/nlr for a free prospectus. They should consider the investment objective, risks, and charges and expenses of Market Vectors-Nuclear Energy ETF carefully before investing. The prospectus contains this and other information about NLR. Please read the prospectus carefully before investing.
Please call 1.888.MKT.VCTR or visit www.vaneck.com/nlr for the most recent month-end performance of Market Vectors-Nuclear Energy ETF. This information will be available no later than seven business days after the most recent month end.
Van Eck Securities Corporation, Distributor, 99 Park Avenue, New York, NY 10016
Mike MacMillan / Lindsey Wetmiller