“In this instance, we wanted to make sure there was certain methodology in terms of liquidity, caps on stock and sector weights, investability, and covering the full universe,” Phillips explained.
There is separation between the ETF manager and the index provider.
“There are safeguards in place, and we received self-indexing relief from the SEC which comes with guidelines in terms of firewalls,” the Van Eck COO said.
Overall, Phillips said the firm has seen interest recently in its gold miner ETFs, Market Vectors Gold Miners (NYSEArca: GDX) and Market Vector Junior Gold Miners (NYSEArca: GDXJ) after strong performance in September.
Another recent trend has been flows to its municipal bond products, especially Market Vectors High-Yield Municipal Index ETF (NYSEArca: HYD). [Muni Bond ETFs: Red Light, Green Light]
Other hot products include Market Vectors Preferred Securities ex Financials (NYSEArca: PFXF) and Market Vectors Mortgage REIT Income ETF (NYSEArca: MORT), Phillips said.