The Market Vectors Uranium+Nuclear Energy ETF (NYSEArca: NLR) is getting a new index.
On or about March 21, NLR will transition to the Market Vectors Global Uranium and Nuclear Energy Index (MVNLRTR) from the DAXglobal Nuclear Energy Index (DXNE). Market Vectors made the announcement in a statement issued after the close of U.S. markets Thursday.
NLR’s new index “is a rules based, modified capitalization-weighted, float-adjusted index that seeks to track the performance of the global uranium and nuclear energy segment,” according to the statement. The index focuses on diversity and investability, among other factors.
Self-indexing has been a somewhat controversial in recent years as some ETF firms are deciding to manage their own indices rather than pay benchmark licensing fees to third-party providers. Critics assert lack of transparency and potential conflicts of interest as sticking points surrounding self-indexing. [Self-Indexing Trend Raises Concerns]
Market Vectors and WisdomTree (NasdaqGM: WETF) have been among the most prolific users of in-house indices. The two firms have over $56 billion in ETF assets under management combined, indicating investors are not overly troubled with the firms’ self-indexing.