The company’s broad array of Market Vectors ETFs includes 12 funds in its hard assets category that comprises various commodity- and energy-focused products.
Van Eck says this transaction is the first U.S.-listed ETF reorganization of its kind.
“This [reorganization of funds] is more common among mutual funds where a mutual fund sponsor may acquire funds run by another sponsor, and then reorganize those funds into their mutual funds lineup,” Rakszawski says. “This is the first time ETFs are being reorganized into a new trust.”
Evidently, other than the name change investors won’t know the difference or skip a beat. “The thing to remember with index-based ETFs is that just because the management team is changing it doesn’t mean anything will change with the fund because they’re still tracking the same index,” Stevens says.