Capitalizing on the increasing popularity of emerging markets, Latin America and the appeal of small-caps in a recovery, Van Eck is planning to bring to market an exchange traded fund (ETF) that targets those areas.
Van Eck‘s recent filing with the Securities and Exchange Commission (SEC) indicates the provider plans to launch a Latin America small-cap ETF. Heather Bell for Index Universe reports that the fund would be only the third ETF to target the Latin American region as a whole, and the first small-cap ETF to do so. [Latin America is full of investment opportunities now.]
Market Vectors Brazil Small Cap (NYSEArca: BRF) launched earlier this year, proving that Van Eck is no stranger to this territory. BRF was one of the most popular new ETFs of 2009, gathering more than $600 million in assets by late December. [Read more about BRF and Brazil.]
The index for the new ETF uses a float-adjusted modified market capitalization weighting methodology, which re-balances quarterly. The 75 companies in the fund must have market capitalizations of at least $150 million to be eligible for the index, with existing components out if they fall below $75 million.
For more stories about new ETFs, visit our new ETF category.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.