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Van Eck Reports Minimal Gains
By Cinthia Murphy | December 24, 2009 8:35 am

Related ETFs: BRF / VNM

 

Van Eck Global will pay small capital gains distributions on two of its 18 exchange-traded funds. The Market Vectors Brazil Small-Cap (NYSEArca: BRF) will pay short-term gains of $0.252/share, while the Market Vectors Vietnam (NYSEArca: VNM) will pay short-term gains of $0.036/share.

Van Eck's Adam Phillips said the gains were tied to index turnover. The sharp market correction in the region this year caused larger-cap companies to “graduate” out of BRF’s leading index, and too-small-for-inclusion companies in Vietnam to grow enough to enter VNM’s portfolio at rebalancing.

Both BRF and VNM employ a fully replicating strategy, which means the turnover in the benchmarks was fully reflected in the ETFs as well.

None of the ETFs posted long-term capital gains.

 

 

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