Investors seeking exposure to Egypt or Kuwait have typically obtained it through Middle East or frontier-country funds, but two exchange-traded funds planned by Van Eck Associates would offer more concentrated exposure.
Market Vectors Egypt Index and Kuwait Index ETFs will track the Egypt and Kuwait indexes, both modified capitalization-weighted, float-adjusted indexes. The Egypt Index is composed of publicly traded companies domiciled and primarily listed on an exchange in Egypt or which generate at least 50% of their revenue in Egypt, according to the fund's registration document. The Kuwait Index is made up of companies incorporated in Kuwait with their primary listing in Kuwait or offshore companies that generate at least 50% of their revenue in Kuwait, the document says.
Stocks in both indexes must have a market capitalization of more than $150 million on a specific rebalancing date. In addition, they must have a three-month average daily trading volume of at least $1 million, and issuers of the stocks must have traded at least 250,000 shares each month over the last six months. Both indexes include about 25 securities.
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