Van Eck Global’s Market Vectors exchange traded fund division launched the first U.S.-listed ETF that follows Indonesia’s small-cap equities market Wednesday.
Market Vectors Indonesia Small-Cap ETF (NYSEArca: IDXJ) is the small-cap version to the Market Vectors Indonesia Index ETF (NYSEArca: IDX). The new fund will track small capitalization companies domiciled and primarily listed in Indonesia, or generate at least 50% of their revenue in Indonesia. [Indonesia ETFs Build Momentum on Economy, Technicals]
IDXJ holds 27 securities, with the top five holdings accounting for 33.7% of the overall fund, and has an expense ratio of 0.61%. The ETF offers a dividend yield of 0.95%.
Sector allocations include financials 39.5%, industrials 18.3%, energy 15.6%, consumer staples 15.5%, materials 5.8% and consumer discretionary 5.3%.
The “fund may benefit from Indonesia’s rising consumption expenditure and disposable income levels,” according to the fund fact sheet. “Small caps may offer greater exposure to domestic growth, less exposure to global cyclicals.”