The ETF is attempting to replicate as closely as possible the price and yield performance of the Market Vectors Global Oil Refiners Index, before fees and expenses. As a requisite to be included in the index, companies must generate at least 50% of their revenues from crude oil refining and meet certain size and liquidity requirements.
For good measure, Van Eck noted that an investment in this ETF does have risks associated with refining companies, such as changes in commodity prices, exchange rates and the price of oil and gas, government regulations, the imposition of import controls and natural disasters, all of which may adversely affect the fund.
Brandon Rakszawski, product manager at Van Eck Global, commented on the release:
The profitability of refiners is generally influenced by the spread between the cost of crude oil and the prices at which refined products can be sold, commonly known as crack spreads. Oil refiners have tended to react differently to the price of oil compared to other energy sector companies. Historically, the return profile is differentiated from other segments of the sector, a trend that has persisted year-to-date.
For some background on Van Eck Global: the company offers innovative investment choices in specialized asset classes such as hard assets, emerging markets and precious metals including gold. Van Eck offers a broad array of Market Vectors ETFs spanning broad-based and specialized asset classes, and it is one of the largest providers of ETPs in the United States and worldwide. The firm has offices around the world and managed approximately $31.1 billion in investor assets at the end of June 2015.
The ETF recently traded at $19.71, after having entered the market at $19.79. So far the trading range is $19.67 to $20.25.
ALSO READ: 6 Analyst Stocks Called to Rise 50% or More
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
