New ETF to focus on Egypt

Van Eck Global is opening the doors to Egypt with the launch of Market Vectors Egypt Index ETF (EGPT). The fund is the first U.S.-based ETF to provide focused exposure to Egypt’s economy. Egypt’s economic growth has averaged 4.9% since the start of the last decade and 6.3% for the three years ending December 31, 2009.

The ETF will track the overall performance of companies that are domiciled, primarily listed and generate a majority of their revenue in Egypt. As of January 31, 2010, the Egypt Index included 28 securities, with the top three index holdings being Commercial International Bank, Orascom Construction Industries and Orascom Telecom Holding SAE (making up 8.5%, 8.4%, 7.9% of the Index, respectively).

”The Market Vectors Egypt Index ETF addresses a growing interest in using individual country funds to calibrate international equity allocations, particularly on the part of investors dissatisfied with existing indices,” said Jan van Eck, principal at Van Eck Global. “These funds serve as targeted tools for overweighting or underweighting specific geographies and economies. As with our other recent ETF introductions, EGPT is designed to provide convenient access to a compelling market that is otherwise not available to the average U.S. investor.”

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