“Right now it basically doesn’t have any impact on the fees at all,” Hamich added. “The fund will pay a licensing fee to the index owner, which is Market Index Solutions, and this company will then do the marketing, do road shows and conferences, so the licensing fees will not flow back to Van Eck. So this is why there really isn’t a savings for the parent company itself.
Van Eck joins other ETF providers, like WisdomTree, IndexIQ and Russell Investments, that are structuring their own ETF products around in-house indices.
In August, BlackRock (NYSE: BLK) filed with regulators to launch its own indices. [BlackRock’s iShares Wants to Manage Indexes]
For more information on indexing, visit our indexing category.
Max Chen contributed to this article.