UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-10325
MARKET VECTORS ETF TRUST
(Exact name of registrant as specified in charter)
335 Madison Avenue, New York, NY 10017
(Address of principal executive offices) (Zip code)
Van Eck Associates Corporation
335 Madison Avenue, New York, NY 10017
(Name and address of agent for service)
Registrant's telephone number, including area code: (212) 293-2000
Date of fiscal year end: SEPTEMBER 30
Date of reporting period: MARCH 31, 2014
ITEM 1. REPORT TO SHAREHOLDERS
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SEMI-ANNUAL REPORT MARCH 31, 2014 (unaudited) |
MARKET VECTORS
INDUSTRY ETFs
MARKET VECTORS
BROAD-BASED U.S. ETF
888.MKT.VCTR
marketvectorsetfs.com
The information contained in the management discussion represents the opinions of Market Vectors ETFs and may differ from other persons. This information is not intended to be a forecast of future events, a guarantee of future results or investment advice. The information contained herein regarding each index has been provided by the relevant index provider. Also, unless otherwise specifically noted, any discussion of the Funds’ holdings and the Funds’ performance, and the views of Market Vectors ETFs are as of March 31, 2014, and are subject to change.
MARKET VECTORS INDUSTRY AND BROAD-BASED U.S. ETFs
(unaudited)
We are pleased to present this semi-annual report for the seven industry exchange-traded funds (ETFs) and one broad-based U.S. equity ETF of the Market Vectors ETF Trust for the six-month period ended March 31, 2014.
Market Vectors Wide Moat ETF Continues to Grow
In barely two years, Market Vectors Wide Moat ETF (MOAT) - launched on April 24, 2012, which seeks to track, before fees and expenses, the Morningstar® Wide Moat Focus IndexSM1 - has attracted $640.2 million in assets under management (AUM), an increase of 76% over the past six months.
Wide Moat Investing: An Impressive Batting Average
Batting average is a measure of outperformance versus a benchmark over different time periods. When applied to investing, it indicates how often an investment strategy has outperformed a benchmark through various periods of time. The Morningstar® Wide Moat Focus IndexSM features an impressive batting average measured against the S&P 500® Index2, particularly over long-term holding periods. In other words, the Wide Moat Index outperformed the S&P over 71% of the time if held for a year.
Source: Morningstar, FactSet. Batting Average is measured by dividing the number of periods a portfolio or investment strategy outperforms a benchmark by the total number of periods.
Not intended to be a forecast of future events, a guarantee of future results or investment advice. Current market conditions may not continue. Past performance is no guarantee of future results; current performance may be lower or higher than the performance data quoted. Index performance is not illustrative of fund performance. Investors cannot invest directly in an Index.
Wide Moat investing continues to provide core, long-term strategic access to the broad U.S. equities market. As we speak with investors, we continue to emphasize the long-term, rather than short-term, potential of Wide Moat investing as illustrated by its batting average.
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MARKET VECTORS INDUSTRY AND BROAD-BASED U.S. ETFs
To subscribe to monthly updates on MOAT and for more information on Morningstar’s approach, please visit our Wide Moat page at www.vaneck.com/special/moat. We also offer quarterly MOAT conference calls.
We will, as always, continue to seek out and evaluate the most attractive opportunities for you as a shareholder. We encourage you stay in touch with us through the videos, email subscriptions, and blogs available on our website (www.vaneck.com). And should you have any questions, please contact us at 1.888.MKT.VCTR or visit www.marketvectorsetfs.com.
Thank you for participating in the Market Vectors ETF Trust. On the following pages, you will find the performance record of each of the funds for the six months ended March 31, 2014. You will also find their financial statements. We value your continuing confidence in us and look forward to helping you meet your investment goals in future.
Jan F. van Eck
Trustee and President
Market Vectors ETF Trust
April 14, 2014
Represents the opinions of the investment adviser. Past performance is no guarantee of future results. Not intended to be a forecast of future events, a guarantee of future results or investment advice. Current market conditions may not continue.
All indices are unmanaged and include the reinvestment of all dividends, but do not reflect the payment of transaction costs, advisory fees or expenses that are associated with an investment in the Fund. An index’s performance is not illustrative of the Fund’s performance. Indices are not securities in which investments can be made. Results reflect past performance and do not guarantee future results.
| 1 | The Morningstar® Wide Moat Focus IndexSM is a rules-based, equal-weighted index intended to offer exposure to the 20 most attractively priced companies with sustainable competitive advantages according to Morningstar’s equity research team. Prior to April 24, 2012, Market Vectors Wide Moat ETF had no operating history. |
| 2 | The S&P 500® Index consists of 500 widely held common stocks covering industrial, utility, financial, and transportation sectors. |
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Management Discussion (unaudited)
The entire suite of eight Market Vectors Industry and Broad-Based U.S. ETFs realized positive performance in the six months ended March 31, 2014. The Market Vectors Pharmaceutical ETF posted an impressive total return of 22.87%, with the Market Vectors Semiconductor ETF not far behind providing a total return of 16.13%. Both funds outperformed the S&P 500® Index’s‡ 12.51% gain over the same period.
Source: Van Eck Global. Returns based on NAV. The performance data quoted represents past performance. Past performance is not a guarantee of future results. Performance information for the Funds reflects temporary waivers of expenses and/or fees. Had the Funds incurred all expenses, investment returns would have been reduced. Investment return and value of the shares of the Funds will fluctuate so that an investor’s shares, when sold, may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted.
Broad-Based U.S. ETF
For the period, Market Vectors Wide Moat ETF underperformed the S&P 500 by 3.49%. This underperformance was driven substantially by its exposure to Weight Watchers International, Inc., which was deprived of any “moat” rating, dropped from the index and removed from the portfolio just before the end of the first quarter of 2014. Top contributing sectors were health care and financials. In the former, Allergan, Inc. (sold by end of period), Eli Lilly and Company (sold by end of period), and Intuitive Surgical, Inc. (sold by end of period) all contributed strongly to the sector’s performance. In the latter, The Bank of New York Mellon Corp. (sold by end of period) and Franklin Resources, Inc. (5.1% of Fund net assets†) were the top performers in the sector. Apart from Weight Watchers International, Inc. (sold by end of period), the top detractors from Fund performance for the period were Kinder Morgan, Inc. (sold by end of period), C.H. Robinson Worldwide, Inc. (4.9% of Fund net assets†), and Western Union Company (4.8% of Fund net assets†).
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MARKET VECTORS INDUSTRY AND BROAD-BASED U.S. ETFs
Industry ETFs
In December 2013, the Federal Reserve (the “Fed”) announced the start of its “taper” program with a reduction of $10 billion in its monthly bond purchases. And, on March 19, 2014, while it announced the third such reduction of $10 billion, it did reconfirm its commitment to low interest rates.1 The continuation of historically low interest rates over the last six months has continued to be a boon for both bank and brokerage stocks, although some of the larger U.S. banks are still failing to clear the hurdles of the Fed’s “stress tests”2. U.S. companies made the largest contribution to the Fund’s performance. While contributions to return from Germany, Japan and the U.K. all detracted from performance, overall contributions to return from all the other six countries were positive.
As the six month period drew to a close, biotech stocks took a severe hit in the market, not least on the back of Gilead Sciences, Inc. (12.0% of Fund net assets†) being asked by Democrats in the U.S. House of Representatives to explain the pricing ($84,000) of its new hepatitis C treatment drug Sovaldi3. However, the Fund posted a total return for the entire period of nearly 10%. U.S. companies contributed by far the most to total return, but there were small contributions from both Ireland and the Netherlands. Illumina, Inc. (4.4% of Fund net assets†), Gilead Sciences, Inc. (12.0% of Fund net assets†) and Biogen Idec Inc. (8.9% of Fund net assets†) all made significant contributions to the Fund’s overall performance.
Environmental services companies have benefited historically from both overall economic growth and that of both the home-building and construction industries. Now, in addition, consumer preferences regarding environmental and sustainability issues, social awareness and both regulation and legislation4 are being seen as creating potential opportunities for the industry. While U.S. stocks accounted for the majority of the Fund’s total return, a sizeable proportion of it also came from French company Veolia Environnement SA (9.9% of Fund net assets†), with the single Canadian stock in the Fund making only a very small negative contribution to overall return. Small-cap companies made the greatest contribution to the Fund’s total return.
The gaming industry continues to enjoy strong performance both in the U.S. and abroad. In 2013, gross winnings (total “take” less payouts and excluding expenses) were around $440 billion5. Although gaming is global, and the two centers of Las Vegas to Macau dominate the industry, Macau, the only place in China to gamble legally, now dwarfs Las Vegas. In 2013, Macau’s gambling revenue was some $45 billion6, in contrast to $6.5 billion7 for Las Vegas. In February 2014 alone, Macau’s gaming revenue was $4.8 billion8. Stocks from the U.S. and Hong Kong (gaming companies in Macau) were, by far, the most significant contributors to the Fund’s overall performance.
Despite continuing discussion, inside and outside the industry, about both viable future business models and markets9, the pharmaceutical industry performed well in the first six months of the Fund’s financial year. This led the Fund to post a notable total return for the period of 22.87%. All countries contributed positively, with the U.S. contributing most substantially to the Fund’s overall performance. In the coming few years, as a number of blockbuster drugs come off patent, and the ways are opened to generics10, the industry may start to face some interesting challenges.
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The six-month period ended March 31, 2014 brought with it positive performance and the Fund returned a creditable 8.41%. Although consumer spending was volatile11 during the year, the U.S. retail industry saw sales rise 3.7%12 in 2013. Consumer confidence (as measured by Conference Board Consumer Confidence Index®), rose, with ups and downs, from 79.713 to 82.314, over the course of the period. And, despite the severe winter weather, retail sales rebounded in February, recording an uptick of approximately 0.2%15. While retail drug stores and health care distributors made by far the greatest contributions to total return, automotive, internet and home improvement retail all also contributed positive small percentages to the Fund’s overall performance.
The global semiconductor industry continued to return market-beating performance in 2013. Sales exceeded $300 billion for the first time ever16, with memory, in particular, dynamic random-access memory (DRAM), leading growth17. While revenue growth leveled off in the fourth quarter of the year18, a worldwide sales figure of $26.3 billion19 was recorded for January 2014 alone, an 8.8% increase from January 2013. Although contributing the most to the Fund’s total return, the industry’s strong positive performance over the period was not restricted to the U.S., with stocks from Taiwan, Singapore and the U.K., in that order, all making positive contributions.
| † | All Fund assets referenced are Total Net Assets as of March 31, 2014. |
| All indices are unmanaged and include the reinvestment of all dividends, but do not reflect the payment of transaction costs, advisory fees or expenses that are associated with an investment in the Fund. An index’s performance is not illustrative of the Fund’s performance. Indices are not securities in which investments can be made. | |
| ‡ | S&P 500® Index consists of 500 widely held common stocks covering the industrial, utility, financial and transportation sectors. |
| 1 | Forbes: Fed Cuts Monthly Asset Purchases To $55 Billion Maintaining Taper Pace, Market Awaits Yellen Remarks, http://www.forbes.com/sites/samanthasharf/2014/03/19/fed-cuts-monthly-asset-purchases-to-55-billion-maintaining-pace-of-taper-market-awaits-yellen-remarks/ |
| 2 | The Wall Street Journal - CFO Journal: The Morning Ledger: Social Issues Added to Corporate Agenda, http://online.wsj.com/public/page/cfo-journal.html |
| 3 | Bloomberg: Are Biotech Stocks a Popping Bubble? That’s the $84,000 Question, http://www.bloomberg.com/news/2014-03-24/are-biotech-stocks-a-popping-bubble-that-s-the-84-000-question.html |
| 4 | Harris Williams & Co.: Environmental Services, Industry Update, March 2014, http://www.harriswilliams.com/sites/default/files/industry_reports/es_monthly_reader_march_2014.pdf |
| 5 | The Economist: Daily chart: The house wins, http://www.economist.com/blogs/graphicdetail/2014/02/daily-chart-0 |
| 6 | CNNMoney: Macau’s gambling industry dwarfs Vegas, http://money.cnn.com/2014/01/06/news/macau-casino-gambling/ |
| 7 | Reuters: Macau gambling revenue surges record 40 pct in February, http://www.reuters.com/article/2014/03/03/macau-revenues-idUSL3N0M01IR20140303 |
| 8 | Ibid. |
| 9 | The Economist: The Pharma Summit 2014 - Reinventing Business Models and Markets, http://www.economistinsights.com/healthcare/event/pharma-summit-2014 |
| 10 | Materia Socio Medica: Financial Aspects and the Future of the Pharmaceutical Industry in the United States of America, http://www.ncbi.nlm.nih.gov/pmc/articles/PMC3914743/ |
| 11 | Marcum Cronus Partners LLC 2014: Sector Bulletin, Retail Technology, March 2014, http://www.marcumcronus.com/bulletin/March2014/RetailTechSectorBulletinMarch2014PW.pdf |
| 12 | Ibid. |
| 13 | The Conference Board, Inc.: The Conference Board Consumer Confidence Index® Falls Slightly, http://www.conference-board.org/press/pressdetail.cfm?pressid=4949 |
| 14 | The Conference Board, Inc.: The Conference Board Consumer Confidence Index® Rebounds in March, http://www.conference-board.org/press/pressdetail.cfm?pressid=5137 |
| 15 | National Retail Federation: Retail Sales Rebound in February; Up 0.2 Percent, http://www.nrf.com/modules.php?name=News&op=viewlive&sp_id=1786 |
| 16 | Forbes: Semiconductors - A Crazy Industry, http://www.forbes.com/sites/jimhandy/2014/02/11/semiconductors-a-crazy-industry-2/ |
| 17 | Manufacturing Geek: How The Semiconductor Industry Performed in 2013, http://manufacturing-geek.com/semi-performance-2013 |
| 18 | Ibid |
| 19 | Electronic Purchasing Strategies: What Does 2014 Hold for Semiconductor Sales, http://electronicspurchasingstrategies.com/2014/03/06/2014-hold-semiconductor-sales/ |
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March 31, 2014 (unaudited)
| Total Return | Share Price1 | NAV | MVRKHTR2 | |||||
| Six Months | 7.01 | % | 8.66 | % | 8.58 | % | ||
| One Year | 19.62 | % | 21.18 | % | 20.90 | % | ||
| Life* (annualized) | 25.68 | % | 25.85 | % | 25.52 | % | ||
| Life* (cumulative) | 68.37 | % | 68.88 | % | 67.90 | % | ||
| *since 12/20/11 | ||||||||
Commencement date for the Market Vectors Bank and Brokerage ETF was 12/20/11.
| 1 | The price used to calculate market return (Share Price) is determined by using the closing price listed on NYSE Arca. Since the shares of the Fund did not trade in the secondary market until several days after the Fund’s commencement, for the period from commencement (12/20/11) to the first day of secondary market trading in shares of the Fund (12/21/11), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. |
The performance data quoted represents past performance. Past performance is not a guarantee of future results.
Performance information for the Fund reflects temporary waivers of expenses and/or fees. Had the Fund incurred all expenses, investment returns would have been reduced. These returns do not reflect the deduction of taxes that a shareholder would pay on Fund dividends and distributions or the sale of Fund shares.
Investment return and value of the shares of the Fund will fluctuate so that an investor’s shares, when sold, may be worth more or less than their original cost. Performance may be lower or higher than performance data quoted. Performance current to the most recent month-end is available by calling 1.888.MKT.VCTR or by visiting marketvectorsetfs.com.
Gross Expense Ratio 1.14% / Net Expense Ratio 0.35%
Van Eck Associates Corporation (the “Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of the Fund (excluding acquired fund fees and expenses, interest expense, offering costs, trading expenses, taxes and extraordinary expenses) from exceeding 0.35% of the Fund’s average daily net assets per year until at least February 1, 2015. During such time, the expense limitation is expected to continue until the Fund’s Board of Trustees acts to discontinue all or a portion of such expense limitation.
Fund shares are not individually redeemable and will be issued and redeemed at their NAV only through certain authorized broker-dealers in large, specified blocks of shares called “creation units” and otherwise can be bought and sold only through exchange trading. Creation units are issued and redeemed principally in kind. Shares may trade at a premium or discount to their NAV in the secondary market.
The “Net Asset Value” (NAV) of a Market Vectors exchange-traded fund (ETF) is determined at the close of each business day, and represents the dollar value of one share of the fund; it is calculated by taking the total assets of the fund, subtracting total liabilities, and dividing by the total number of shares outstanding. The NAV is not necessarily the same as the ETF’s intraday trading value. Market Vectors ETF investors should not expect to buy or sell shares at NAV.
Market Vectors US Listed Bank and Brokerage 25 Index (the “Index”) is the exclusive property of Market Vectors Index Solutions GmbH (a wholly owned subsidiary of the Adviser), which has contracted with Solactive to maintain and calculate the Index. Solactive AG uses its best efforts to ensure that the Index is calculated correctly. Irrespective of its obligations towards Market Vectors Index Solutions GmbH, Solactive AG has no obligation to point out errors in the Index to third parties. Market Vectors Bank and Brokerage ETF (the “Fund”) is not sponsored, endorsed, sold or promoted by Market Vectors Index Solutions GmbH and Market Vectors Index Solutions GmbH makes no representation regarding the advisability of investing in the Fund.
Index returns assume the reinvestment of all income and do not reflect any management fees or brokerage expenses associated with Fund returns. Investors cannot invest directly in the Index. Returns for actual Fund investors may differ from what is shown because of differences in timing, the amount invested and fees and expenses.
| 2 | Market Vectors US Listed Bank and Brokerage 25 Index (MVRKHTR) is a rules based, modified capitalization weighted, float adjusted index intended to give investors a means of tracking the overall performance of the largest and the most liquid common stocks and depositary receipts of U.S. exchange-listed companies engaged primarily on a global basis that derive the majority of their revenues from banking, which includes a broad range of financial services such as investment banking, brokerage services and corporate lending to large institutions. |
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PERFORMANCE COMPARISON
March 31, 2014 (unaudited)
| Total Return | Share Price1 | NAV | MVBBHTR2 | |||||
| Six Months | 9.91 | % | 9.90 | % | 9.91 | % | ||
| One Year | 39.91 | % | 40.18 | % | 40.26 | % | ||
| Life* (annualized) | 51.78 | % | 51.72 | % | 51.96 | % | ||
| Life* (cumulative) | 158.88 | % | 158.63 | % | 159.55 | % | ||
| *since 12/20/11 | ||||||||
Commencement date for the Market Vectors Biotech ETF was 12/20/11.
| 1 | The price used to calculate market return (Share Price) is determined by using the closing price listed on NYSE Arca. Since the shares of the Fund did not trade in the secondary market until several days after the Fund’s commencement, for the period from commencement (12/20/11) to the first day of secondary market trading in shares of the Fund (12/21/11), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. |
The performance data quoted represents past performance. Past performance is not a guarantee of future results.
Performance information for the Fund reflects temporary waivers of expenses and/or fees. Had the Fund incurred all expenses, investment returns would have been reduced. These returns do not reflect the deduction of taxes that a shareholder would pay on Fund dividends and distributions or the sale of Fund shares.
Investment return and value of the shares of the Fund will fluctuate so that an investor’s shares, when sold, may be worth more or less than their original cost. Performance may be lower or higher than performance data quoted. Performance current to the most recent month-end is available by calling 1.888.MKT.VCTR or by visiting marketvectorsetfs.com.
Gross Expense Ratio 0.39% / Net Expense Ratio 0.35%
Van Eck Associates Corporation (the “Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of the Fund (excluding acquired fund fees and expenses, interest expense, offering costs, trading expenses, taxes and extraordinary expenses) from exceeding 0.35% of the Fund’s average daily net assets per year until at least February 1, 2015. During such time, the expense limitation is expected to continue until the Fund’s Board of Trustees acts to discontinue all or a portion of such expense limitation.
Fund shares are not individually redeemable and will be issued and redeemed at their NAV only through certain authorized broker-dealers in large, specified blocks of shares called “creation units” and otherwise can be bought and sold only through exchange trading. Creation units are issued and redeemed principally in kind. Shares may trade at a premium or discount to their NAV in the secondary market.
The “Net Asset Value” (NAV) of a Market Vectors exchange-traded fund (ETF) is determined at the close of each business day, and represents the dollar value of one share of the fund; it is calculated by taking the total assets of the fund, subtracting total liabilities, and dividing by the total number of shares outstanding. The NAV is not necessarily the same as the ETF’s intraday trading value. Market Vectors ETF investors should not expect to buy or sell shares at NAV.
Market Vectors US Listed Biotech 25 Index (the “Index”) is the exclusive property of Market Vectors Index Solutions GmbH (a wholly owned subsidiary of the Adviser), which has contracted with Solactive AG to maintain and calculate the Index. Solactive AG uses its best efforts to ensure that the Index is calculated correctly. Irrespective of its obligations towards Market Vectors Index Solutions GmbH, Solactive AG has no obligation to point out errors in the Index to third parties. Market Vectors Biotech ETF (the “Fund”) is not sponsored, endorsed, sold or promoted by Market Vectors Index Solutions GmbH and Market Vectors Index Solutions GmbH makes no representation regarding the advisability of investing in the Fund.
Index returns assume the reinvestment of all income and do not reflect any management fees or brokerage expenses associated with Fund returns. Investors cannot invest directly in the Index. Returns for actual Fund investors may differ from what is shown because of differences in timing, the amount invested and fees and expenses.
| 2 | Market Vectors US Listed Biotech 25 Index (MVBBHTR) is a rules based, modified capitalization weighted, float adjusted index intended to give investors a means of tracking the overall performance of the largest and the most liquid common stocks and depositary receipts of U.S. exchange-listed companies that derive most of their revenues from biotechnology, which includes biotechnology research and development as well as production, marketing and sales of drugs based on genetic analysis and diagnostic equipment. |
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ENVIRONMENTAL SERVICES ETF (EVX)
PERFORMANCE COMPARISON
March 31, 2014 (unaudited)
| Total Return | Share Price1 | NAV | AXENV2 | |||||
| Six Months | 6.75 | % | 6.61 | % | 6.96 | % | ||
| One Year | 19.03 | % | 18.37 | % | 19.14 | % | ||
| Five Year | 19.79 | % | 19.77 | % | 20.52 | % | ||
| Life* (annualized) | 8.06 | % | 8.07 | % | 8.66 | % | ||
| Life* (cumulative) | 78.45 | % | 78.52 | % | 86.04 | % | ||
| *since 10/10/06 | ||||||||
Commencement date for the Market Vectors Environmental Services ETF was 10/10/06.
| 1 | The price used to calculate market return (Share Price) is determined by using the closing price listed on NYSE Arca. Since the shares of the Fund did not trade in the secondary market until several days after the Fund’s commencement, for the period from commencement (10/10/06) to the first day of secondary market trading in shares of the Fund (10/16/06), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. |
The performance data quoted represents past performance. Past performance is not a guarantee of future results.
Performance information for the Fund reflects temporary waivers of expenses and/or fees. Had the Fund incurred all expenses, investment returns would have been reduced. These returns do not reflect the deduction of taxes that a shareholder would pay on Fund dividends and distributions or the sale of Fund shares.
Investment return and value of the shares of the Fund will fluctuate so that an investor’s shares, when sold, may be worth more or less than their original cost. Performance may be lower or higher than performance data quoted. Performance current to the most recent month-end is available by calling 1.888.MKT.VCTR or by visiting marketvectorsetfs.com.
Gross Expense Ratio 1.03% / Net Expense Ratio 0.55%
Van Eck Associates Corporation (the “Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of the Fund (excluding acquired fund fees and expenses, interest expense, offering costs, trading expenses, taxes and extraordinary expenses) from exceeding 0.55% of the Fund’s average daily net assets per year until at least February 1, 2015. During such time, the expense limitation is expected to continue until the Fund’s Board of Trustees acts to discontinue all or a portion of such expense limitation.
Fund shares are not individually redeemable and will be issued and redeemed at their NAV only through certain authorized broker-dealers in large, specified blocks of shares called “creation units” and otherwise can be bought and sold only through exchange trading. Creation units are issued and redeemed principally in kind. Shares may trade at a premium or discount to their NAV in the secondary market.
The “Net Asset Value” (NAV) of a Market Vectors exchange-traded fund (ETF) is determined at the close of each business day, and represents the dollar value of one share of the fund; it is calculated by taking the total assets of the fund, subtracting total liabilities, and dividing by the total number of shares outstanding. The NAV is not necessarily the same as the ETF’s intraday trading value. Market Vectors ETF investors should not expect to buy or sell shares at NAV.
NYSE Arca Environmental Services Index (AXENV) is a trademark of NYSE Euronext or its affiliates (NYSE Euronext), is licensed for use by Van Eck Associates Corporation. NYSE Euronext neither sponsors nor endorses the Fund and makes no representation as to the accuracy and/or completeness of AXENV or results to be obtained by any person from using the AXENV in connection with trading of the Fund.
Index returns assume the reinvestment of all income and do not reflect any management fees or brokerage expenses associated with Fund returns. Investors cannot invest directly in the Index. Returns for actual Fund investors may differ from what is shown because of differences in timing, the amount invested and fees and expenses.
| 2 | NYSE Arca Environmental Services Index (AXENV) is a modified equal dollar-weighted index comprised of publicly traded companies that are involved in the management, removal and storage of consumer waste and industrial byproducts and related environmental services. |
| 8 |
PERFORMANCE COMPARISON
March 31, 2014 (unaudited)
| Total Return | Share Price1 | NAV | MVBJKTR2 | |||||
| Six Months | 9.84 | % | 9.60 | % | 9.65 | % | ||
| One Year | 29.99 | % | 29.86 | % | 30.47 | % | ||
| Five Years | 30.33 | % | 30.30 | % | 30.91 | % | ||
| Life* (annualized) | 6.69 | % | 6.66 | % | 7.56 | % | ||
| Life* (cumulative) | 49.26 | % | 49.06 | % | 57.00 | % | ||
| *since 1/22/08 | ||||||||
Index data prior to September 24, 2012 reflects that of the S-Network Global Gaming Index (WAGRT). From September 24, 2012 forward, the index data reflects that of the Market Vectors Global Gaming Index (MVBJKTR). All Index history reflects a blend of the performance of the aforementioned Indexes AND IS NOT INTENDED FOR ANY THIRD PARTY USE. | ||||||||
Commencement date for the Market Vectors Gaming ETF was 1/22/08.
| 1 | The price used to calculate market return (Share Price) is determined by using the closing price listed on NYSE Arca. Since the shares of the Fund did not trade in the secondary market until several days after the Fund’s commencement, for the period from commencement (1/22/08) to the first day of secondary market trading in shares of the Fund (1/24/08), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. |
The performance data quoted represents past performance. Past performance is not a guarantee of future results.
Performance information for the Fund reflects temporary waivers of expenses and/or fees. Had the Fund incurred all expenses, investment returns would have been reduced. These returns do not reflect the deduction of taxes that a shareholder would pay on Fund dividends and distributions or the sale of Fund shares.
Investment return and value of the shares of the Fund will fluctuate so that an investor’s shares, when sold, may be worth more or less than their original cost. Performance may be lower or higher than performance data quoted. Performance current to the most recent month-end is available by calling 1.888.MKT.VCTR or by visiting marketvectorsetfs.com.
Gross Expense Ratio 0.73% / Net Expense Ratio 0.65%
Van Eck Associates Corporation (the “Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of the Fund (excluding acquired fund fees and expenses, interest expense, offering costs, trading expenses, taxes and extraordinary expenses) from exceeding 0.65% of the Fund’s average daily net assets per year until at least February 1, 2015. During such time, the expense limitation is expected to continue until the Fund’s Board of Trustees acts to discontinue all or a portion of such expense limitation.
Fund shares are not individually redeemable and will be issued and redeemed at their NAV only through certain authorized broker-dealers in large, specified blocks of shares called “creation units” and otherwise can be bought and sold only through exchange trading. Creation units are issued and redeemed principally in cash. Shares may trade at a premium or discount to their NAV in the secondary market.
The “Net Asset Value” (NAV) of a Market Vectors exchange-traded fund (ETF) is determined at the close of each business day, and represents the dollar value of one share of the fund; it is calculated by taking the total assets of the fund, subtracting total liabilities, and dividing by the total number of shares outstanding. The NAV is not necessarily the same as the ETF’s intraday trading value. Market Vectors ETF investors should not expect to buy or sell shares at NAV.
Market Vectors Global Gaming Index (the “Index”) is the exclusive property of Market Vectors Index Solutions GmbH (a wholly owned subsidiary of the Adviser), which has contracted with Solactive AG to maintain and calculate the Index. Solactive AG uses its best efforts to ensure that the Index is calculated correctly. Irrespective of its obligations towards Market Vectors Index Solutions GmbH, Solactive AG has no obligation to point out errors in the Index to third parties. Market Vectors Gaming ETF (the “Fund”) is not sponsored, endorsed, sold or promoted by Market Vectors Index Solutions GmbH and Market Vectors Index Solutions GmbH makes no representation regarding the advisability of investing in the Fund.
Index returns assume the reinvestment of all income and do not reflect any management fees or brokerage expenses associated with Fund returns. Investors cannot invest directly in the Index. Returns for actual Fund investors may differ from what is shown because of differences in timing, the amount invested and fees and expenses.
| 2 | Market Vectors Global Gaming Index (MVBJKTR) is a rules based index intended to give investors a means of tracking the overall performance of the largest and most liquid companies in the global gaming industry that generate at least 50% of their revenues from casinos and hotels, sports betting (including internet gambling and racetracks) and lottery services as well as gaming services, gaming technology and gaming equipment. |
| 9 |
PERFORMANCE COMPARISON
March 31, 2014 (unaudited)
| Total Return | Share Price1 | NAV | MVPPHTR2 | |||||
| Six Months | 22.94 | % | 22.87 | % | 22.81 | % | ||
| One Year | 32.43 | % | 32.58 | % | 32.46 | % | ||
| Life* (annualized) | 27.26 | % | 26.75 | % | 26.59 | % | ||
| Life* (cumulative) | 73.25 | % | 71.65 | % | 71.17 | % | ||
| *since 12/20/11 | ||||||||
Commencement date for the Market Vectors Pharmaceutical ETF was 12/20/11.
| 1 | The price used to calculate market return (Share Price) is determined by using the closing price listed on NYSE Arca. Since the shares of the Fund did not trade in the secondary market until several days after the Fund’s commencement, for the period from commencement (12/20/11) to the first day of secondary market trading in shares of the Fund (12/21/11), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. |
The performance data quoted represents past performance. Past performance is not a guarantee of future results.
Performance information for the Fund reflects temporary waivers of expenses and/or fees. Had the Fund incurred all expenses, investment returns would have been reduced. These returns do not reflect the deduction of taxes that a shareholder would pay on Fund dividends and distributions or the sale of Fund shares.
Investment return and value of the shares of the Fund will fluctuate so that an investor’s shares, when sold, may be worth more or less than their original cost. Performance may be lower or higher than performance data quoted. Performance current to the most recent month-end is available by calling 1.888.MKT.VCTR or by visiting marketvectorsetfs.com.
Gross Expense Ratio 0.43% / Net Expense Ratio 0.35%
Van Eck Associates Corporation (the “Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of the Fund (excluding acquired fund fees and expenses, interest expense, offering costs, trading expenses, taxes and extraordinary expenses) from exceeding 0.35% of the Fund’s average daily net assets per year until at least February 1, 2015. During such time, the expense limitation is expected to continue until the Fund’s Board of Trustees acts to discontinue all or a portion of such expense limitation.
Fund shares are not individually redeemable and will be issued and redeemed at their NAV only through certain authorized broker-dealers in large, specified blocks of shares called “creation units” and otherwise can be bought and sold only through exchange trading. Creation units are issued and redeemed principally in kind. Shares may trade at a premium or discount to their NAV in the secondary market.
The “Net Asset Value” (NAV) of a Market Vectors exchange-traded fund (ETF) is determined at the close of each business day, and represents the dollar value of one share of the fund; it is calculated by taking the total assets of the fund, subtracting total liabilities, and dividing by the total number of shares outstanding. The NAV is not necessarily the same as the ETF’s intraday trading value. Market Vectors ETF investors should not expect to buy or sell shares at NAV.
Market Vectors US Listed Pharmaceutical 25 Index (the “Index”) is the exclusive property of Market Vectors Index Solutions GmbH (a wholly owned subsidiary of the Adviser), which has contracted with Solactive AG to maintain and calculate the Index. Solactive AG uses its best efforts to ensure that the Index is calculated correctly. Irrespective of its obligations towards Market Vectors Index Solutions GmbH, Solactive AG has no obligation to point out errors in the Index to third parties. Market Vectors Pharmaceutical ETF (the “Fund”) is not sponsored, endorsed, sold or promoted by Market Vectors Index Solutions GmbH and Market Vectors Index Solutions GmbH makes no representation regarding the advisability of investing in the Fund.
Index returns assume the reinvestment of all income and do not reflect any management fees or brokerage expenses associated with Fund returns. Investors cannot invest directly in the Index. Returns for actual Fund investors may differ from what is shown because of differences in timing, the amount invested and fees and expenses.
| 2 | Market Vectors US Listed Pharmaceutical 25 Index (MVPPHTR) is a rules based, modified capitalization weighted, float adjusted index intended to give investors a means of tracking the overall performance of the largest and the most liquid common stocks and depositary receipts of U.S. exchange-listed companies that derive most their revenues from pharmaceuticals, which includes pharmaceutical research and development as well as production, marketing and sales of pharmaceuticals. |
| 10 |
PERFORMANCE COMPARISON
March 31, 2014 (unaudited)
| Total Return | Share Price1 | NAV | MVRTHTR2 | |||||
| Six Months | 8.35 | % | 8.41 | % | 8.36 | % | ||
| One Year | 22.57 | % | 22.64 | % | 22.48 | % | ||
| Life* (annualized) | 24.80 | % | 24.22 | % | 23.94 | % | ||
| Life* (cumulative) | 65.69 | % | 63.95 | % | 63.12 | % | ||
| *since 12/20/11 | ||||||||
Commencement date for the Market Vectors Retail ETF was 12/20/11.
| 1 | The price used to calculate market return (Share Price) is determined by using the closing price listed on NYSE Arca. Since the shares of the Fund did not trade in the secondary market until several days after the Fund’s commencement, for the period from commencement (12/20/11) to the first day of secondary market trading in shares of the Fund (12/21/11), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. |
The performance data quoted represents past performance. Past performance is not a guarantee of future results.
Performance information for the Fund reflects temporary waivers of expenses and/or fees. Had the Fund incurred all expenses, investment returns would have been reduced. These returns do not reflect the deduction of taxes that a shareholder would pay on Fund dividends and distributions or the sale of Fund shares.
Investment return and value of the shares of the Fund will fluctuate so that an investor’s shares, when sold, may be worth more or less than their original cost. Performance may be lower or higher than performance data quoted. Performance current to the most recent month-end is available by calling 1.888.MKT.VCTR or by visiting marketvectorsetfs.com.
Gross Expense Ratio 0.68% / Net Expense Ratio 0.35%
Van Eck Associates Corporation (the “Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of the Fund (excluding acquired fund fees and expenses, interest expense, offering costs, trading expenses, taxes and extraordinary expenses) from exceeding 0.35% of the Fund’s average daily net assets per year until at least February 1, 2015. During such time, the expense limitation is expected to continue until the Fund’s Board of Trustees acts to discontinue all or a portion of such expense limitation.
Fund shares are not individually redeemable and will be issued and redeemed at their NAV only through certain authorized broker-dealers in large, specified blocks of shares called “creation units” and otherwise can be bought and sold only through exchange trading. Creation units are issued and redeemed principally in kind. Shares may trade at a premium or discount to their NAV in the secondary market.
The “Net Asset Value” (NAV) of a Market Vectors exchange-traded fund (ETF) is determined at the close of each business day, and represents the dollar value of one share of the fund; it is calculated by taking the total assets of the fund, subtracting total liabilities, and dividing by the total number of shares outstanding. The NAV is not necessarily the same as the ETF’s intraday trading value. Market Vectors ETF investors should not expect to buy or sell shares at NAV.
Market Vectors US Listed Retail 25 Index (the “Index”) is the exclusive property of Market Vectors Index Solutions GmbH (a wholly owned subsidiary of the Adviser), which has contracted with Solactive AG to maintain and calculate the Index. Solactive AG uses its best efforts to ensure that the Index is calculated correctly. Irrespective of its obligations towards Market Vectors Index Solutions GmbH, Solactive AG has no obligation to point out errors in the Index to third parties. Market Vectors Retail ETF (the “Fund”) is not sponsored, endorsed, sold or promoted by Market Vectors Index Solutions GmbH and Market Vectors Index Solutions GmbH makes no representation regarding the advisability of investing in the Fund.
Index returns assume the reinvestment of all income and do not reflect any management fees or brokerage expenses associated with Fund returns. Investors cannot invest directly in the Index. Returns for actual Fund investors may differ from what is shown because of differences in timing, the amount invested and fees and expenses.
| 2 | Market Vectors US Listed Retail 25 Index (MVRTHTR) is a rules-based, modified capitalization weighted, float adjusted index intended to give investors a means of tracking the overall performance of the largest and the most liquid common stocks and depositary receipts of U.S. exchange-listed companies that derive most of their revenues from retail, which includes retail distribution; wholesalers; online, direct mail and TV retailers; multi-line retailers; specialty retailers, such as apparel, automotive, computer and electronics, drug, home improvement and home furnishing retailers; and food and other staples retailers. |
| 11 |
PERFORMANCE COMPARISON
March 31, 2014 (unaudited)
| Total Return | Share Price1 | NAV | MVSMHTR2 | |||||
| Six Months | 16.15 | % | 16.13 | % | 16.11 | % | ||
| One Year | 30.37 | % | 30.12 | % | 29.98 | % | ||
| Life* (annualized) | 22.08 | % | 22.22 | % | 22.05 | % | ||
| Life* (cumulative) | 57.59 | % | 57.98 | % | 57.49 | % | ||
| *since 12/20/11 | ||||||||
Commencement date for the Market Vectors Semiconductor ETF was 12/20/11.
| 1 | The price used to calculate market return (Share Price) is determined by using the closing price listed on NYSE Arca. Since the shares of the Fund did not trade in the secondary market until several days after the Fund’s commencement, for the period from commencement (12/20/11) to the first day of secondary market trading in shares of the Fund (12/21/11), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. |
The performance data quoted represents past performance. Past performance is not a guarantee of future results.
Performance information for the Fund reflects temporary waivers of expenses and/or fees. Had the Fund incurred all expenses, investment returns would have been reduced. These returns do not reflect the deduction of taxes that a shareholder would pay on Fund dividends and distributions or the sale of Fund shares.
Investment return and value of the shares of the Fund will fluctuate so that an investor’s shares, when sold, may be worth more or less than their original cost. Performance may be lower or higher than performance data quoted. Performance current to the most recent month-end is available by calling 1.888.MKT.VCTR or by visiting marketvectorsetfs.com.
Gross Expense Ratio 0.43% / Net Expense Ratio 0.35%
Van Eck Associates Corporation (the “Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of the Fund (excluding acquired fund fees and expenses, interest expense, offering costs, trading expenses, taxes and extraordinary expenses) from exceeding 0.35% of the Fund’s average daily net assets per year until at least February 1, 2015. During such time, the expense limitation is expected to continue until the Fund’s Board of Trustees acts to discontinue all or a portion of such expense limitation.
Fund shares are not individually redeemable and will be issued and redeemed at their NAV only through certain authorized broker-dealers in large, specified blocks of shares called “creation units” and otherwise can be bought and sold only through exchange trading. Creation units are issued and redeemed principally in kind. Shares may trade at a premium or discount to their NAV in the secondary market.
The “Net Asset Value” (NAV) of a Market Vectors exchange-traded fund (ETF) is determined at the close of each business day, and represents the dollar value of one share of the fund; it is calculated by taking the total assets of the fund, subtracting total liabilities, and dividing by the total number of shares outstanding. The NAV is not necessarily the same as the ETF’s intraday trading value. Market Vectors ETF investors should not expect to buy or sell shares at NAV.
Market Vectors US Listed Semiconductor 25 Index (the “Index”) is the exclusive property of Market Vectors Index Solutions GmbH (a wholly owned subsidiary of the Adviser), which has contracted with Solactive AG to maintain and calculate the Index. Solactive AG uses its best efforts to ensure that the Index is calculated correctly. Irrespective of its obligations towards Market Vectors Index Solutions GmbH, Solactive AG has no obligation to point out errors in the Index to third parties. Market Vectors Semiconductor ETF (the “Fund”) is not sponsored, endorsed, sold or promoted by Market Vectors Index Solutions GmbH and Market Vectors Index Solutions GmbH makes no representation regarding the advisability of investing in the Fund.
Index returns assume the reinvestment of all income and do not reflect any management fees or brokerage expenses associated with Fund returns. Investors cannot invest directly in the Index. Returns for actual Fund investors may differ from what is shown because of differences in timing, the amount invested and fees and expenses.
| 2 | Market Vectors US Listed Semiconductor 25 Index (MVSMHTR) is a rules-based, rules based, modified capitalization weighted, float adjusted index intended to give investors a means of tracking the overall performance of the largest and the most liquid common stocks and depositary receipts of U.S. exchange-listed companies that derive most of their revenues from semiconductors, which includes the production of semiconductors and semiconductor equipment. |
| 12 |
PERFORMANCE COMPARISON
March 31, 2014 (unaudited)
| Total Return | Share Price1 | NAV | MWMFTR2 | |||||
| Six Months | 8.81 | % | 9.02 | % | 9.16 | % | ||
| One Year | 26.04 | % | 26.10 | % | 26.61 | % | ||
| Life* (annualized) | 22.26 | % | 22.24 | % | 22.72 | % | ||
| Life* (cumulative) | 47.51 | % | 47.47 | % | 48.60 | % | ||
| *since 4/24/12 | ||||||||
Commencement date for the Market Vectors Wide Moat ETF was 4/24/12.
| 1 | The price used to calculate market return (Share Price) is determined by using the closing price listed on NYSE Arca. Since the shares of the Fund did not trade in the secondary market until several days after the Fund’s commencement, for the period from commencement (4/24/12) to the first day of secondary market trading in shares of the Fund (4/25/12), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. |
The performance data quoted represents past performance. Past performance is not a guarantee of future results.
Performance information for the Fund reflects temporary waivers of expenses and/or fees. Had the Fund incurred all expenses, investment returns would have been reduced. These returns do not reflect the deduction of taxes that a shareholder would pay on Fund dividends and distributions or the sale of Fund shares.
Investment return and value of the shares of the Fund will fluctuate so that an investor’s shares, when sold, may be worth more or less than their original cost. Performance may be lower or higher than performance data quoted. Performance current to the most recent month-end is available by calling 1.888.MKT.VCTR or by visiting marketvectorsetfs.com.
Gross Expense Ratio 0.49% / Net Expense Ratio 0.49%
Van Eck Associates Corporation (the “Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of the Fund (excluding acquired fund fees and expenses, interest expense, offering costs, trading expenses, taxes and extraordinary expenses) from exceeding 0.49% of the Fund’s average daily net assets per year until at least February 1, 2015. During such time, the expense limitation is expected to continue until the Fund’s Board of Trustees acts to discontinue all or a portion of such expense limitation.
Fund shares are not individually redeemable and will be issued and redeemed at their NAV only through certain authorized broker-dealers in large, specified blocks of shares called “creation units” and otherwise can be bought and sold only through exchange trading. Creation units are issued and redeemed principally in kind. Shares may trade at a premium or discount to their NAV in the secondary market.
The “Net Asset Value” (NAV) of a Market Vectors exchange-traded fund (ETF) is determined at the close of each business day, and represents the dollar value of one share of the fund; it is calculated by taking the total assets of the fund, subtracting total liabilities, and dividing by the total number of shares outstanding. The NAV is not necessarily the same as the ETF’s intraday trading value. Market Vectors ETF investors should not expect to buy or sell shares at NAV.
The Morningstar® Wide Moat Focus IndexSM was created and is maintained by Morningstar, Inc. Morningstar, Inc. does not sponsor, endorse, issue, sell, or promote the Market Vectors Wide Moat ETF and bears no liability with respect to that ETF or any security. Morningstar® is a registered trademark of Morningstar, Inc. Morningstar® Wide Moat Focus IndexSM is a service mark of Morningstar, Inc.
Index returns assume the reinvestment of all income and do not reflect any management fees or brokerage expenses associated with Fund returns. Investors cannot invest directly in the Index. Returns for actual Fund investors may differ from what is shown because of differences in timing, the amount invested and fees and expenses.
| 2 | Morningstar® Wide Moat Focus IndexSM (MWMFTR) is a rules-based, equal-weighted index intended to offer exposure to companies that Morningstar determines have sustainable competitive advantages based on a proprietary methodology that considers quantitative and qualitative factors (“wide moat companies”). |
| 13 |
MARKET VECTORS ETF TRUST
(unaudited)
Hypothetical $1,000 investment at beginning of period
As a shareholder of a Fund, you incur operating expenses, including management fees and other Fund expenses. This disclosure is intended to help you understand the ongoing costs (in dollars) of investing in your Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The disclosure is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, October 1, 2013 to March 31, 2014.
Actual Expenses
The first line in the table below provides information about account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During the Period.”
Hypothetical Example for Comparison Purposes
The second line in the table below provides information about hypothetical account values and hypothetical expenses based on your Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as program fees. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Beginning Account Value October 1, 2013 | Ending Account Value March 31, 2014 | Annualized Expense Ratio During Period | Expenses Paid During the Period* October 1, 2013- March 31, 2014 | |||||||||||||||||||||
| Bank and Brokerage ETF | ||||||||||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,086.60 | 0.35 | % | $ | 1.82 | ||||||||||||||||
| Hypothetical** | $ | 1,000.00 | $ | 1,023.19 | 0.35 | % | $ | 1.77 | ||||||||||||||||
| Biotech ETF | ||||||||||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,099.00 | 0.35 | % | $ | 1.83 | ||||||||||||||||
| Hypothetical** | $ | 1,000.00 | $ | 1,023.19 | 0.35 | % | $ | 1.77 | ||||||||||||||||
| Environmental Services ETF | ||||||||||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,066.10 | 0.55 | % | $ | 2.83 | ||||||||||||||||
| Hypothetical** | $ | 1,000.00 | $ | 1,022.19 | 0.55 | % | $ | 2.77 | ||||||||||||||||
| Gaming ETF | ||||||||||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,096.00 | 0.65 | % | $ | 3.40 | ||||||||||||||||
| Hypothetical** | $ | 1,000.00 | $ | 1,021.69 | 0.65 | % | $ | 3.28 | ||||||||||||||||
| Pharmaceutical ETF | ||||||||||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,228.70 | 0.35 | % | $ | 1.94 | ||||||||||||||||
| Hypothetical** | $ | 1,000.00 | $ | 1,023.19 | 0.35 | % | $ | 1.77 | ||||||||||||||||
| Retail ETF | ||||||||||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,084.10 | 0.35 | % | $ | 1.82 | ||||||||||||||||
| Hypothetical** | $ | 1,000.00 | $ | 1,023.19 | 0.35 | % | $ | 1.77 | ||||||||||||||||
| Semiconductor ETF | ||||||||||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,161.30 | 0.35 | % | $ | 1.89 | ||||||||||||||||
| Hypothetical** | $ | 1,000.00 | $ | 1,023.19 | 0.35 | % | $ | 1.77 | ||||||||||||||||
| Wide Moat ETF | ||||||||||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,090.20 | 0.49 | % | $ | 2.55 | ||||||||||||||||
| Hypothetical** | $ | 1,000.00 | $ | 1,022.49 | 0.49 | % | $ | 2.47 | ||||||||||||||||
| * | Expenses are equal to the Fund’s annualized expense ratio (for the six months ended March 31, 2014) multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half year divided by the number of days in the fiscal year (to reflect the one-half year period). |
| ** | Assumes annual return of 5% before expenses |
| 14 |
March 31, 2014 (unaudited)
| Number of Shares | Value | |||||||
| COMMON STOCKS: 98.0% | ||||||||
| Brazil: 1.4% | ||||||||
| 15,682 | Banco Bradesco S.A. (ADR) | $ | 214,373 | |||||
| Canada: 13.0% | ||||||||
| 4,299 | Bank of Montreal (USD) | 288,076 | ||||||
| 8,008 | Bank of Nova Scotia (USD) † | 464,624 | ||||||
| 10,638 | Royal Bank of Canada (USD) | 702,002 | ||||||
| 12,574 | Toronto-Dominion Bank (USD) | 590,349 | ||||||
| 2,045,051 | ||||||||
| Germany: 2.2% | ||||||||
| 7,600 | Deutsche Bank AG (USD) | 340,708 | ||||||
| India: 0.6% | ||||||||
| 2,220 | ICICI Bank Ltd. (ADR) | 97,236 | ||||||
| Japan: 3.9% | ||||||||
| 111,143 | Mitsubishi UFJ Financial Group, Inc. (ADR) | 615,732 | ||||||
| Netherlands: 2.7% | ||||||||
| 30,139 | ING Groep N.V. (ADR) * | 429,481 | ||||||
| Spain: 8.8% | ||||||||
| 45,402 | Banco Bilbao Vizcaya Argentaria S.A. (ADR) † |
|
|
545,278 |
|
|||
| 86,762 | Banco Santander S.A. (ADR) | 831,180 | ||||||
| 1,376,458 | ||||||||
| Switzerland: 5.9% | ||||||||
| 10,391 | Credit Suisse Group AG (ADR) | 336,461 | ||||||
| 28,318 | UBS AG (USD) | 586,749 | ||||||
| 923,210 | ||||||||
| United Kingdom: 12.0% | ||||||||
| 28,227 | Barclays Plc (ADR) | 443,164 | ||||||
| 28,290 | HSBC Holdings Plc (ADR) | 1,437,981 | ||||||
| 1,881,145 | ||||||||
| United States: 47.5% | ||||||||
| 75,345 | Bank of America Corp. | 1,295,934 | ||||||
| 7,642 | Charles Schwab Corp. | 208,856 | ||||||
| 21,434 | Citigroup, Inc. | 1,020,258 | ||||||
| 2,771 | Goldman Sachs Group, Inc. | 454,028 | ||||||
| 26,430 | JPMorgan Chase & Co. | 1,604,565 | ||||||
| 9,612 | Morgan Stanley | 299,606 | ||||||
| 3,856 | The PNC Financial Services Group, Inc. | 335,472 | ||||||
| 12,568 | U.S. Bancorp | 538,665 | ||||||
| 33,960 | Wells Fargo & Co. | 1,689,170 | ||||||
| 7,446,554 | ||||||||
| Total Common Stocks (Cost: $14,109,790) | 15,369,948 | |||||||
| Number of Shares | Value | |||||||
| PREFERRED STOCK: 1.7% | ||||||||
| Brazil: 1.7% (Cost: $285,900) | ||||||||
| 18,316 | Itau Unibanco Holding S.A. (ADR) | $ | 272,176 | |||||
| MONEY MARKET FUND: 0.2% (Cost: $35,748) | ||||||||
| 35,748 | Dreyfus Government Cash Management Fund | 35,748 | ||||||
| Total Investments Before Collateral for Securities Loaned: 99.9% | ||||||||
| (Cost: $14,431,438) | 15,677,872 | |||||||
| SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES LOANED: 4.0% | ||||||||
| (Cost: $625,548) | ||||||||
| 625,548 | Bank of New York Overnight Government Fund | 625,548 | ||||||
| Total Investments: 103.9% | ||||||||
| (Cost: $15,056,986) | 16,303,420 | |||||||
| Liabilities in excess of other assets: (3.9)% | (615,847 | ) | ||||||
| NET ASSETS: 100.0% | $ | 15,687,573 | ||||||
See Notes to Financial Statements
| 15 |
BANK AND BROKERAGE ETF
SCHEDULE OF INVESTMENTS
March 31, 2014 (unaudited) (continued)
| ADR | American Depositary Receipt |
| USD | United States Dollar |
| * | Non-income producing |
| † | Security fully or partially on loan. Total market value of securities on loan is $609,835. |
| Summary of Investments by Sector Excluding Collateral for Securities Loaned (unaudited) | % of Investments | Value | ||||||||
| Commercial Banking Institution | 25.6 | % | $ | 4,005,294 | ||||||
| Diversified Banking Institution | 53.8 | 8,435,186 | ||||||||
| Finance - Investment Banker / Broker | 1.3 | 208,856 | ||||||||
| Life & Health Insurance | 2.7 | 429,481 | ||||||||
| Super - Regional Banks | 16.4 | 2,563,307 | ||||||||
| Money Market Fund | 0.2 | 35,748 | ||||||||
| 100.0 | % | $ | 15,677,872 | |||||||
The summary of inputs used to value the Fund’s investments as of March 31, 2014 is as follows:
| Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||||||
| Common Stocks* | $ | 15,369,948 | $ | – | $ | – | $ | 15,369,948 | ||||||||||||
| Preferred Stock* | 272,176 | – | – | 272,176 | ||||||||||||||||
| Money Market Funds | 661,296 | – | – | 661,296 | ||||||||||||||||
| Total | $ | 16,303,420 | $ | – | $ | – | $ | 16,303,420 | ||||||||||||
| * | See Schedule of Investments for security type and geographic sector breakouts. |
See Notes to Financial Statements
| 16 |
SCHEDULE OF INVESTMENTS
March 31, 2014 (unaudited)
| Number of Shares | Value | |||||||
| COMMON STOCKS: 100.0% | ||||||||
| Ireland: 4.7% | ||||||||
| 616,297 | Alkermes Plc (USD) * | $ | 27,172,535 | |||||
| Netherlands: 3.5% | ||||||||
| 944,115 | Qiagen N.V. (USD) * † | 19,911,385 | ||||||
| United States: 91.8% | ||||||||
| 179,640 | Alexion Pharmaceuticals, Inc. * | 27,328,633 | ||||||
| 536,702 | Amgen, Inc. | 66,196,825 | ||||||
| 669,593 | Ariad Pharmaceuticals, Inc. * † | 5,396,920 | ||||||
| 168,040 | Biogen Idec, Inc. * | 51,398,395 | ||||||
| 347,726 | BioMarin Pharmaceutical, Inc. * | 23,718,390 | ||||||
| 338,351 | Celgene Corp. * | 47,233,800 | ||||||
| 150,805 | Cepheid, Inc. * | 7,778,522 | ||||||
| 154,834 | Charles River Laboratories International, Inc. * | 9,342,684 | ||||||
| 140,697 | Covance, Inc. * | 14,618,418 | ||||||
| 194,702 | Cubist Pharmaceuticals, Inc. * | 14,242,451 | ||||||
| 977,459 | Gilead Sciences, Inc. * | 69,262,745 | ||||||
| 170,106 | Illumina, Inc. * | 25,287,958 | ||||||
| 402,526 | Incyte Corp. * | 21,543,192 | ||||||
| 29,155 | Intercept Pharmaceuticals, Inc. * | 9,615,027 | ||||||
| 502,288 | Isis Pharmaceuticals, Inc. * † | 21,703,864 | ||||||
| 221,720 | Medivation, Inc. * | 14,272,116 | ||||||
| 167,882 | Myriad Genetics, Inc. * † | 5,739,886 | ||||||
| 234,725 | NPS Pharmaceuticals, Inc. * | 7,025,319 | ||||||
| 153,765 | Pharmacyclics, Inc. * | 15,410,328 | ||||||
| 94,264 | Regeneron Pharmaceuticals, Inc. * | 28,305,594 | ||||||
| 131,407 | Seattle Genetics, Inc. * † | 5,986,903 | ||||||
| 137,913 | United Therapeutics Corp. * | 12,967,959 | ||||||
| 360,636 | Vertex Pharmaceuticals, Inc. * | 25,504,178 | ||||||
| 529,880,107 | ||||||||
| Total Common Stocks | ||||||||
| (Cost: $526,910,778) | 576,964,027 | |||||||
| MONEY MARKET FUND: 0.0% (Cost: $202,003) | ||||||||
| 202,003 | Dreyfus Government Cash Management Fund | 202,003 | ||||||
| Total Investments Before Collateral for Securities Loaned: 100.0% | ||||||||
| (Cost: $527,112,781) | 577,166,030 | |||||||
| Principal Amount | Value | |||||||
| SHORT-TERM INVESTMENTS HELD AS COLLATERAL FOR SECURITIES LOANED: 4.2% | ||||||||
| Repurchase Agreements: 4.2% | ||||||||
| $ | 1,212,422 | Repurchase agreement dated 3/31/14 with Credit Suisse Securities (USA) LLC, 0.05% due 4/1/14, proceeds $1,212,425; (collateralized by various U.S. government and agency obligations, 0.00%, due 8/15/23 to 5/15/43, valued at $1,236,672 including accrued interest) | $ | 1,212,422 | ||||
| 5,759,416 | Repurchase agreement dated 3/31/14 with Daiwa Capital Markets America, 0.12% due 4/1/14, proceeds $5,759,454; (collateralized by various U.S. government and agency obligations, 0.00% to 6.50%, due 3/27/17 to 3/1/48, valued at $5,874,605 including accrued interest) | 5,759,416 | ||||||
| 5,759,416 | Repurchase agreement dated 3/31/14 with HSBC Securities USA, Inc., 0.06% due 4/1/14, proceeds $5,759,435; (collateralized by various U.S. government and agency obligations, 0.00% to 9.38%, due 4/15/14 to 11/15/30, valued at $5,874,618 including accrued interest) | 5,759,416 | ||||||
| 5,759,416 | Repurchase agreement dated 3/31/14 with Nomura Securities Int., Inc., 0.10% due 4/1/14, proceeds $5,759,448; (collateralized by various U.S. government and agency obligations, 0.00% to 6.04%, due 4/1/14 to 5/1/47, valued at $5,874,604 including accrued interest) | 5,759,416 | ||||||
| 5,759,416 | Repurchase agreement dated 3/31/14 with RBS Securities, Inc., 0.08% due 4/1/14, proceeds $5,759,442; (collateralized by various U.S. government and agency obligations, 0.38% to 6.75%, due 4/23/14 to 7/15/32, valued at $5,874,619 including accrued interest) | 5,759,416 | ||||||
| Total Short-Term Investments Held as Collateral for Securities Loaned | ||||||||
| (Cost: $24,250,086) | 24,250,086 | |||||||
| Total Investments: 104.2% | ||||||||
| (Cost: $551,362,867) | 601,416,116 | |||||||
| Liabilities in excess of other assets: (4.2)% | (24,359,854 | ) | ||||||
| NET ASSETS: 100.0% | $ | 577,056,262 | ||||||
See Notes to Financial Statements
| 17 |
BIOTECH ETF
SCHEDULE OF INVESTMENTS
March 31, 2014 (unaudited) (continued)
| USD | United States Dollar |
| * | Non-income producing |
| † | Security fully or partially on loan. Total market value of securities on loan is $23,180,702. |
| Summary of Investments by Sector Excluding Collateral for Securities Loaned (unaudited) | % of Investments | Value | ||||||||
| Diagnostic Equipment | 1.3 | % | $ | 7,778,522 | ||||||
| Diagnostic Kits | 3.5 | 19,911,385 | ||||||||
| Medical - Biomedical / Genetics | 85.3 | 492,072,839 | ||||||||
| Medical - Drugs | 4.7 | 27,172,535 | ||||||||
| Medical Labs & Testing Service | 2.5 | 14,618,418 | ||||||||
| Therapeutics | 2.7 | 15,410,328 | ||||||||
| Money Market Fund | 0.0 | 202,003 | ||||||||
| 100.0 | % | $ | 577,166,030 | |||||||
The summary of inputs used to value the Fund’s investments as of March 31, 2014 is as follows:
| Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||||
| Common Stocks* | $ | 576,964,027 | $ | – | $ | – | $ | 576,964,027 | ||||||||||
| Money Market Fund | 202,003 | – | – | 202,003 | ||||||||||||||
| Repurchase Agreements | – | 24,250,086 | – | 24,250,086 | ||||||||||||||
| Total | $ | 577,166,030 | $ | 24,250,086 | $ | – | $ | 601,416,116 | ||||||||||
| * | See Schedule of Investments for security type and geographic sector breakouts. |
See Notes to Financial Statements
| 18 |
SCHEDULE OF INVESTMENTS
March 31, 2014 (unaudited)
| Number of Shares | Value | |||||||
| COMMON STOCKS: 99.8% | ||||||||
| Canada: 2.6% | ||||||||
| 20,102 | Progressive Waste Solutions Ltd. (USD) † | $ | 508,782 | |||||
| China / Hong Kong: 1.5% | ||||||||
| 77,660 | China Recycling Energy Corp. (USD) * | 305,204 | ||||||
| France: 9.9% | ||||||||
| 98,346 | Veolia Environnement S.A. (ADR) † | 1,955,119 | ||||||
| United States: 85.8% | ||||||||
| 17,067 | ABM Industries, Inc. | 490,506 | ||||||
| 20,119 | Advanced Emissions Solutions, Inc. * | 493,720 | ||||||
| 22,616 | Calgon Carbon Corp. * | 493,707 | ||||||
| 13,963 | Cantel Medical Corp. | 470,832 | ||||||
| 28,505 | Ceco Environmental Corp. | 472,898 | ||||||
| 8,551 | Clarcor, Inc. | 490,400 | ||||||
| 9,083 | Clean Harbors, Inc. * | 497,658 | ||||||
| 29,629 | Covanta Holding Corp. | 534,803 | ||||||
| 25,027 | Darling International, Inc. * | 501,041 | ||||||
| 11,698 | Donaldson Company, Inc. | 495,995 | ||||||
| 71,024 | Energy Recovery, Inc. * † | 377,848 | ||||||
| 75,266 | Fuel Tech, Inc. * † | 376,330 | ||||||
| 21,594 | Layne Christensen Co. * | 392,795 | ||||||
| 45,212 | Newpark Resources, Inc. * | 517,677 | ||||||
| 25,753 | Nuverra Environmental Solutions * † | 522,528 | ||||||
| 212,299 | Rentech, Inc. * | 403,368 | ||||||
| 57,683 | Republic Services, Inc. | 1,970,451 | ||||||
| 16,949 | Schnitzer Steel Industries, Inc. | 488,979 | ||||||
| 17,374 | Stericycle, Inc. * | 1,974,034 | ||||||
| 10,250 | Steris Corp. | 489,437 | ||||||
| Number of Shares | Value | |||||||
| United States: (continued) | ||||||||
| 7,667 | Tennant Co. | $ | 503,109 | |||||
| 8,276 | Tenneco, Inc. * | 480,587 | ||||||
| 16,485 | Tetra Tech, Inc. * | 487,791 | ||||||
| 13,247 | US Ecology, Inc. | 491,729 | ||||||
| 11,184 | Waste Connections, Inc. | 490,530 | ||||||
| 48,214 | Waste Management, Inc. | 2,028,363 | ||||||
| 16,937,116 | ||||||||
| Total Common Stocks (Cost: $17,465,186) | 19,706,221 | |||||||
| MONEY MARKET FUND: 0.3% (Cost: $45,054) | ||||||||
| 45,054 | Dreyfus Government Cash Management Fund | 45,054 | ||||||
| Total Investments Before Collateral for Securities Loaned: 100.1% | ||||||||
| (Cost: $17,510,240) | 19,751,275 | |||||||
| SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR SECURITIES LOANED: 7.2% | ||||||||
| (Cost: $1,428,432) | ||||||||
| 1,428,432 | Bank of New York Overnight Government Fund | 1,428,432 | ||||||
| Total Investments: 107.3% (Cost: $18,938,672) | 21,179,707 | |||||||
| Liabilities in excess of other assets: (7.3)% | (1,439,070 | ) | ||||||
| NET ASSETS: 100.0% | $ | 19,740,637 | ||||||
| ADR | American Depositary Receipt |
| USD | United States Dollar |
| * | Non-income producing |
| † | Security fully or partially on loan. Total market value of securities on loan is $1,386,529. |
| Summary of Investments by Sector Excluding Collateral for Securities Loaned (unaudited) | % of Investments | Value | ||||||||
| Agricultural Chemicals | 2.0 | % | $ | 403,368 | ||||||
| Air Pollution Control Equipment | 2.4 | 472,898 | ||||||||
| Alternative Waste Technology | 5.0 | 994,748 | ||||||||
| Automobile / Truck Parts & Equipment | 2.4 | 480,587 | ||||||||
| Building – Maintenance & Service | 2.5 | 490,506 | ||||||||
| Building & Construction | 2.0 | 392,795 | ||||||||
| Environment Consulting & Engineering | 2.5 | 487,791 | ||||||||
| Filtration & Separate Products | 5.0 | 986,395 | ||||||||
| Hazardous Waste Disposal | 15.0 | 2,963,421 | ||||||||
| Machinery – General Industry | 2.6 | 503,109 | ||||||||
| Medical Products | 4.9 | 960,269 | ||||||||
| Non – Hazardous Waste Disposal | 28.0 | 5,532,929 | ||||||||
| Oil – Field Services | 2.6 | 517,677 | ||||||||
| Pollution Control | 4.4 | 870,050 | ||||||||
| Power Conversion / Supply Equipment | 1.5 | 305,204 | ||||||||
| Steel – Producers | 2.5 | 488,979 | ||||||||
| Water | 9.9 | 1,955,119 | ||||||||
| Water Treatment Systems | 4.6 | 900,376 | ||||||||
| Money Market Fund | 0.2 | 45,054 | ||||||||
| 100.0 | % | $ | 19,751,275 | |||||||
The summary of inputs used to value the Fund’s investments as of March 31, 2014 is as follows:
| Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||||||
| Common Stocks* | $ | 19,706,221 | $ | – | $ | – | $ | 19,706,221 | ||||||||||||
| Money Market Funds | 1,473,486 | – | – | 1,473,486 | ||||||||||||||||
| Total | $ | 21,179,707 | $ | – | $ | – | $ | 21,179,707 | ||||||||||||
| * | See Schedule of Investments for security type and geographic sector breakouts. |
See Notes to Financial Statements
| 19 |
SCHEDULE OF INVESTMENTS
March 31, 2014 (unaudited)
| Number of Shares | Value | |||||||
| COMMON STOCKS: 98.2% | ||||||||
| Australia: 8.5% | ||||||||
| 177,871 | Aristocrat Leisure Ltd. # | $ | 888,182 | |||||
| 171,243 | Crown Ltd. # | 2,646,903 | ||||||
| 338,567 | Echo Entertainment Group Ltd. # | 770,206 | ||||||
| 325,785 | TABCORP Holdings Ltd. # | 1,031,173 | ||||||
| 774,785 | Tatts Group Ltd. # | 2,085,023 | ||||||
| 7,421,487 | ||||||||
| China / Hong Kong: 33.8% | ||||||||
| 678,240 | Galaxy Entertainment Group Ltd. * # | 5,919,367 | ||||||
| 173,263 | Melco Crown Entertainment Ltd. (ADR) | 6,696,615 | ||||||
| 328,400 | Melco International Development Ltd. # | 1,104,053 | ||||||
| 1,270,500 | MGM China Holdings Ltd. # | 4,488,416 | ||||||
| 730,000 | Sands China Ltd. # | 5,474,569 | ||||||
| 942,000 | SJM Holdings Ltd. # | 2,653,647 | ||||||
| 794,000 | Wynn Macau Ltd. # | 3,304,540 | ||||||
| 29,641,207 | ||||||||
| Greece: 2.0% | ||||||||
| 58,229 | Intralot S.A. # | 185,174 | ||||||
| 97,668 | OPAP S.A .# | 1,568,866 | ||||||
| 1,754,040 | ||||||||
| Ireland: 1.5% | ||||||||
| 16,695 | Paddy Power Plc # | 1,332,347 | ||||||
| Italy: 1.4% | ||||||||
| 39,004 | GTECH S.p.A. # | 1,185,516 | ||||||
| Japan: 4.4% | ||||||||
| 33,479 | Sankyo Co. Ltd. # | 1,412,155 | ||||||
| 109,100 | Sega Sammy Holdings, Inc. # | 2,454,634 | ||||||
| 3,866,789 | ||||||||
| Malaysia: 7.7% | ||||||||
| 642,183 | Berjaya Sports Toto Bhd # | 780,527 | ||||||
| 1,137,938 | Genting Bhd # | 3,490,193 | ||||||
| 1,643,398 | Genting Malaysia Bhd # | 2,114,505 | ||||||
| 437,000 | Magnum Bhd | 400,132 | ||||||
| 6,785,357 | ||||||||
| New Zealand: 1.0% | ||||||||
| 244,178 | Sky City Entertainment Group Ltd. # | 833,287 | ||||||
| Singapore: 3.9% | ||||||||
| 3,211,400 | Genting Singapore Plc # | 3,416,311 | ||||||
| Number of Shares | Value | |||||||
| South Africa: 0.5% | ||||||||
| 52,237 | Sun International Ltd. # | $ | 469,884 | |||||
| South Korea: 3.1% | ||||||||
| 74,856 | Kangwon Land, Inc. # | 2,183,677 | ||||||
| 17,900 | Paradise Co. Ltd. # | 547,192 | ||||||
| 2,730,869 | ||||||||
| Sweden: 0.7% | ||||||||
| 16,861 | Betsson A.B. # | 613,232 | ||||||
| United Kingdom: 6.8% | ||||||||
| 326,132 | Bwin.Party Digital Entertainment Plc # | 689,907 | ||||||
| 167,976 | IG Group Holdings Plc # | 1,758,699 | ||||||
| 337,311 | Ladbrokes Plc # | 759,847 | ||||||
| 64,185 | Playtech Ltd. # | 724,613 | ||||||
| 360,384 | William Hill Plc # | 2,050,389 | ||||||
| 5,983,455 | ||||||||
| United States: 22.9% | ||||||||
| 13,471 | Bally Technologies, Inc. * | 892,723 | ||||||
| 34,189 | Boyd Gaming Corp. * | 451,295 | ||||||
| 27,669 | Global Cash Access Holdings, Inc. * | 189,809 | ||||||
| 103,857 | International Game Technology | 1,460,229 | ||||||
| 87,100 | Las Vegas Sands Corp. | 7,035,938 | ||||||
| 142,110 | MGM Mirage * | 3,674,965 | ||||||
| 27,335 | Penn National Gaming, Inc. * | 336,767 | ||||||
| 20,714 | Pinnacle Entertainment, Inc. * | 490,922 | ||||||
| 23,756 | Scientific Games Corp. * | 326,170 | ||||||
| 23,213 | Wynn Resorts Ltd. | 5,156,768 | ||||||
| 20,015,586 | ||||||||
| Total Common Stocks (Cost: $65,871,399) | 86,049,367 | |||||||
| REAL ESTATE INVESTMENT TRUST:
1.8% (Cost: $1,547,943) | ||||||||
| United States: 1.8% | ||||||||
| 43,057 | Gaming and Leisure Properties, Inc. | 1,569,858 | ||||||
| Total Investments: 100.0% (Cost: $67,419,342) | 87,619,225 | |||||||
| Liabilities in excess of other assets: (0.0)% | (4,526 | ) | ||||||
| NET ASSETS: 100.0% | $ | 87,614,699 | ||||||
See Notes to Financial Statements
| 20 |
| ADR | American Depositary Receipt |
| * | Non-income producing |
| # | Indicates a fair valued security which has not been valued utilizing an independent quote, but has been valued pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $58,937,034 which represents 67.3% of net assets. |
| Summary of Investments by Sector (unaudited) | % of Investments | Value | ||||||||
| Casino Hotels | 65.5 | % | $ | 57,364,775 | ||||||
| Casino Services | 8.1 | 7,096,509 | ||||||||
| Commercial Services - Finance | 0.2 | 189,809 | ||||||||
| Computer Software | 0.8 | 724,613 | ||||||||
| Diversified Operations | 1.7 | 1,504,185 | ||||||||
| Finance - Other Services | 2.0 | 1,758,699 | ||||||||
| Gambling (Non-Hotel) | 12.2 | 10,649,855 | ||||||||
| Internet Gambling | 1.5 | 1,303,139 | ||||||||
| Leisure & Recreation Products | 2.8 | 2,454,634 | ||||||||
| Lottery Services | 4.8 | 4,236,240 | ||||||||
| Racetracks | 0.4 | 336,767 | ||||||||
| 100.0 | % | $ | 87,619,225 | |||||||
The summary of inputs used to value the Fund’s investments as of March 31, 2014 is as follows:
| Level
1 Quoted Prices | Level
2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||||
| Common Stocks | ||||||||||||||||||
| Australia | $ | – | $ | 7,421,487 | $ | – | $ | 7,421,487 | ||||||||||
| China / Hong Kong | 6,696,615 | 22,944,592 | – | 29,641,207 | ||||||||||||||
| Greece | – | 1,754,040 | – | 1,754,040 | ||||||||||||||
| Ireland | – | 1,332,347 | – | 1,332,347 | ||||||||||||||
| Italy | – | 1,185,516 | – | 1,185,516 | ||||||||||||||
| Japan | – | 3,866,789 | – | 3,866,789 | ||||||||||||||
| Malaysia | 400,132 | 6,385,225 | – | 6,785,357 | ||||||||||||||
| New Zealand | – | 833,287 | – | 833,287 | ||||||||||||||
| Singapore | – | 3,416,311 | – | 3,416,311 | ||||||||||||||
| South Africa | – | 469,884 | – | 469,884 | ||||||||||||||
| South Korea | – | 2,730,869 | – | 2,730,869 | ||||||||||||||
| Sweden | – | 613,232 | – | 613,232 | ||||||||||||||
| United Kingdom | – | 5,983,455 | – | 5,983,455 | ||||||||||||||
| United States | 20,015,586 | – | – | 20,015,586 | ||||||||||||||
| Real Estate Investment Trust | ||||||||||||||||||
| United States | 1,569,858 | – | – | 1,569,858 | ||||||||||||||
| Total | $ | 28,682,191 | $ | 58,937,034 | $ | – | $ | 87,619,225 | ||||||||||
During the period ended March 31, 2014, transfer of securities from Level 2 to Level 1 were $327,479. These transfers resulted primarily from changes in certain foreign securities valuation methodologies between the last close of the securities’ primary market (Level 1) and valuation by a pricing service (Level 2) which takes into account market direction or events occurring before the Fund’s pricing time but after the last local close, as described in the Notes to Financial Statements.
See Notes to Financial Statements
| 21 |
SCHEDULE OF INVESTMENTS
March 31, 2014 (unaudited)
| Number of Shares | Value | |||||||
| COMMON STOCKS: 99.4% | ||||||||
| Denmark: 5.0% | ||||||||
| 342,784 | Novo-Nordisk A.S. (ADR) | $ | 15,648,090 | |||||
| France: 5.1% | ||||||||
| 310,591 | Sanofi S.A. (ADR) | 16,237,697 | ||||||
| Ireland: 10.6% | ||||||||
| 62,943 | Actavis Plc (USD) * | 12,956,817 | ||||||
| 47,984 | Endo International Plc (USD) * | 3,294,102 | ||||||
| 45,025 | Perrigo Co. Plc (USD) | 6,963,566 | ||||||
| 68,400 | Shire Plc (ADR) | 10,159,452 | ||||||
| 33,373,937 | ||||||||
| Israel: 4.8% | ||||||||
| 287,973 | Teva Pharmaceutical Industries Ltd. (ADR) | 15,216,493 | ||||||
| Switzerland: 8.8% | ||||||||
| 324,869 | Novartis A.G. (ADR) | 27,620,362 | ||||||
| United Kingdom: 9.3% | ||||||||
| 212,951 | AstraZeneca Plc (ADR) | 13,816,261 | ||||||
| 286,921 | GlaxoSmithKline Plc (ADR) | 15,330,189 | ||||||
| 29,146,450 | ||||||||
| United States: 55.8% | ||||||||
| 357,979 | Abbott Laboratories | 13,785,771 | ||||||
| 305,479 | AbbVie, Inc. | 15,701,621 | ||||||
| 110,357 | Allergan, Inc. | 13,695,304 | ||||||
| 257,014 | Bristol-Myers Squibb Co. | 13,351,877 | ||||||
| 239,822 | Eli Lilly & Co. | 14,115,923 | ||||||
| 62,303 | Forest Laboratories, Inc. * | 5,748,698 | ||||||
| 50,578 | Hospira, Inc. * | 2,187,498 | ||||||
| 302,182 | Johnson & Johnson | 29,683,338 | ||||||
| 289,470 | Merck & Co., Inc. | 16,433,212 | ||||||
| 131,328 | Mylan, Inc. * | 6,412,746 | ||||||
| 720,273 | Pfizer, Inc. | 23,135,169 | ||||||
| 18,657 | Questcor Pharmaceuticals, Inc. † | 1,211,399 | ||||||
| 15,343 | Salix Pharmaceuticals Ltd. * | 1,589,688 | ||||||
| 98,488 | Valeant Pharmaceuticals International, Inc. * | 12,983,673 | ||||||
| 190,931 | Zoetis, Inc. | 5,525,543 | ||||||
| 175,561,460 | ||||||||
| Total Common Stocks (Cost: $265,319,748) | 312,804,489 | |||||||
| Number of Shares | Value | |||||||
| MONEY MARKET FUND: 0.0% (Cost: $73) | ||||||||
| 73 | Dreyfus Government Cash Management Fund | $ | 73 | |||||
| Total Investments Before Collateral for Securities Loaned: 99.4% | ||||||||
| (Cost: $265,319,821) | 312,804,562 | |||||||
| Principal Amount | ||||||||
| SHORT-TERM
INVESTMENTS HELD AS COLLATERAL FOR SECURITIES LOANED: 0.4% | ||||||||
| Repurchase Agreements: 0.4% | ||||||||
| $ | 130,339 | Repurchase agreement dated 3/31/14 with Nomura Securities Int., Inc., 0.06% due 4/1/14, proceeds $130,339; (collateralized by various U.S. government and agency obligations, 0.88% to 8.13%, due 4/15/14 to 2/15/41, valued at $132,946 including accrued interest) | 130,339 | |||||
| 1,000,000 | Repurchase agreement dated 3/31/14 with RBS Securities, Inc., 0.08% due 4/1/14, proceeds $1,000,004; (collateralized by various U.S. government and agency obligations, 0.38% to 6.75%, due 4/23/14 to 7/15/32, valued at $1,020,003 including accrued interest) | 1,000,000 | ||||||
| Total Short-Term Investments Held as Collateral for Securities Loaned (Cost: $1,130,339) | 1,130,339 | |||||||
| Total Investments: 99.8% (Cost: $266,450,160) | 313,934,901 | |||||||
| Other assets less liabilities: 0.2% | 722,041 | |||||||
| NET ASSETS: 100.0% | $ | 314,656,942 | ||||||
See Notes to Financial Statements
| 22 |
| ADR | American Depositary Receipt |
| USD | United States Dollar |
| * | Non-income producing |
| † | Security fully or partially on loan. Total market value of securities on loan is $1,105,736. |
| Summary of Investments by Sector Excluding Collateral for Securities Loaned (unaudited) | % of Investments | Value | ||||||||
| Medical – Drugs | 85.6 | % | $ | 267,855,970 | ||||||
| Medical – Generic Drugs | 13.3 | 41,549,622 | ||||||||
| Medical Products | 0.7 | 2,187,498 | ||||||||
| Therapeutics | 0.4 | 1,211,399 | ||||||||
| Money Market Fund | 0.0 | 73 | ||||||||
| 100.0 | % | $ | 312,804,562 | |||||||
The summary of inputs used to value the Fund’s investments as of March 31, 2014 is as follows:
| Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||||
| Common Stocks* | $ | 312,804,489 | $ | – | $ | – | $ | 312,804,489 | ||||||||||
| Money Market Fund | 73 | – | – | 73 | ||||||||||||||
| Repurchase Agreements | – | 1,130,339 | – | 1,130,339 | ||||||||||||||
| Total | $ | 312,804,562 | $ | 1,130,339 | $ | – | $ | 313,934,901 | ||||||||||
* See Schedule of Investments for security type and geographic sector breakouts.
See Notes to Financial Statements
| 23 |
SCHEDULE OF INVESTMENTS
March 31, 2014 (unaudited)
| Number of Shares | Value | |||||||
| COMMON STOCKS: 100.1% | ||||||||
| United States: 100.1% | ||||||||
| 7,273 | Amazon.com, Inc. * | $ | 2,447,510 | |||||
| 8,837 | AmerisourceBergen Corp. | 579,619 | ||||||
| 1,111 | AutoZone, Inc. * | 596,718 | ||||||
| 7,905 | Bed Bath & Beyond, Inc. * | 543,864 | ||||||
| 9,552 | Best Buy Co., Inc. | 252,268 | ||||||
| 11,751 | Cardinal Health, Inc. | 822,335 | ||||||
| 11,102 | Costco Wholesale Corp. | 1,239,871 | ||||||
| 23,468 | CVS Caremark Corp. | 1,756,815 | ||||||
| 12,805 | Dollar General Corp. * | 710,421 | ||||||
| 23,787 | Home Depot, Inc. | 1,882,265 | ||||||
| 7,950 | Kohl’s Corp. | 451,560 | ||||||
| 19,669 | Kroger Co. | 858,552 | ||||||
| 9,534 | L Brands, Inc. | 541,245 | ||||||
| 25,903 | Lowe’s Cos., Inc. | 1,266,657 | ||||||
| 15,434 | MACY’S, Inc. | 915,082 | ||||||
| 6,268 | McKesson Corp. | 1,106,741 | ||||||
| 7,775 | Ross Stores, Inc. | 556,301 | ||||||
| Number of Shares | Value | |||||||
| United States: (continued) | ||||||||
| 24,469 | Staples, Inc. | $ | 277,479 | |||||
| 23,110 | Sysco Corp. | 834,964 | ||||||
| 18,841 | Target Corp. | 1,140,069 | ||||||
| 11,754 | The Gap, Inc. | 470,865 | ||||||
| 18,716 | TJX Cos., Inc. | 1,135,125 | ||||||
| 19,111 | Walgreen Co. | 1,261,899 | ||||||
| 34,843 | Wal-Mart Stores, Inc. | 2,663,051 | ||||||
| 14,695 | Whole Foods Market, Inc. | 745,184 | ||||||
| Total Common Stocks (Cost: $26,143,329) |
25,056,460 | |||||||
| MONEY MARKET FUND: 0.0% | ||||||||
| (Cost: $5,922) | ||||||||
| 5,922 | Dreyfus Government Cash Management Fund | 5,922 | ||||||
| Total Investments: 100.1% | ||||||||
| (Cost: $26,149,251) | 25,062,382 | |||||||
| Liabilities in excess of other assets: (0.1)% | (25,039 | ) | ||||||
| NET ASSETS: 100.0% | $ | 25,037,343 | ||||||
* Non-income producing
| Summary of Investments by Sector (unaudited) | % of Investments | Value | ||||||
| E-Commerce / Products | 9.8 | % | $ | 2,447,510 | ||||
| Food - Retail | 6.4 | 1,603,736 | ||||||
| Food - Wholesale / Distribution | 3.3 | 834,964 | ||||||
| Medical - Wholesale Drug Distributors | 10.0 | 2,508,695 | ||||||
| Retail - Apparel / Shoes | 6.3 | 1,568,411 | ||||||
| Retail - Auto Parts | 2.4 | 596,718 | ||||||
| Retail - Bedding | 2.2 | 543,864 | ||||||
| Retail - Building Products | 12.6 | 3,148,922 | ||||||
| Retail - Consumer Electronics | 1.0 | 252,268 | ||||||
| Retail - Discount | 23.0 | 5,753,412 | ||||||
| Retail - Drug Store | 12.0 | 3,018,714 | ||||||
| Retail - Major Department Store | 4.5 | 1,135,125 | ||||||
| Retail - Office Supplies | 1.1 | 277,479 | ||||||
| Retail - Regional Department Store | 5.4 | 1,366,642 | ||||||
| Money Market Fund | 0.0 | 5,922 | ||||||
| 100.0 | % | $ | 25,062,382 | |||||
The summary of inputs used to value the Fund’s investments as of March 31, 2014 is as follows:
| Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||||
| Common Stocks* | $ | 25,056,460 | $ | – | $ | – | $ | 25,056,460 | ||||||||||
| Money Market Fund | 5,922 | – | – | 5,922 | ||||||||||||||
| Total | $ | 25,062,382 | $ | – | $ | – | $ | 25,062,382 | ||||||||||
* See Schedule of Investments for security type and geographic sector breakouts.
See Notes to Financial Statements
| 24 |
SCHEDULE OF INVESTMENTS
March 31, 2014 (unaudited)
| Number of Shares | Value | |||||||
| COMMON STOCKS: 100.0% | ||||||||
| Bermuda: 1.7% | ||||||||
| 372,411 | Marvell Technology Group Ltd. (USD) | $ | 5,865,473 | |||||
| Netherlands: 8.5% | ||||||||
| 182,001 | ASML Holding N.V. (USD) | 16,991,613 | ||||||
| 199,456 | NXP Semiconductor NV (USD) * | 11,730,007 | ||||||
| 28,721,620 | ||||||||
| Singapore: 3.6% | ||||||||
| 186,010 | Avago Technologies Ltd. (USD) | 11,980,904 | ||||||
| Taiwan: 12.6% | ||||||||
| 2,132,187 | Taiwan Semiconductor Manufacturing Co. Ltd. (ADR) | 42,686,384 | ||||||
| United Kingdom: 5.1% | ||||||||
| 336,348 | ARM Holdings Plc (ADR) | 17,143,658 | ||||||
| United States: 68.5% | ||||||||
| 711,367 | Advanced Micro Devices, Inc. * † | 2,852,582 | ||||||
| 289,137 | Altera Corp. | 10,478,325 | ||||||
| 287,965 | Analog Devices, Inc. | 15,302,460 | ||||||
| 763,539 | Applied Materials, Inc. | 15,591,466 | ||||||
| 486,658 | Broadcom Corp. | 15,319,994 | ||||||
| 84,887 | Cree, Inc. * | 4,801,209 | ||||||
| 2,328,980 | Intel Corp. | 60,110,974 | ||||||
| 133,935 | KLA-Tencor Corp. | 9,260,266 | ||||||
| 149,705 | Lam Research Corp. * | 8,233,775 | ||||||
| 147,849 | Linear Technology Corp. | 7,198,768 | ||||||
| 190,122 | Maxim Integrated Products, Inc. | 6,296,841 | ||||||
| 169,530 | Microchip Technology, Inc. | 8,096,753 | ||||||
| 666,335 | Micron Technology, Inc. * | 15,765,486 | ||||||
| 504,212 | NVIDIA Corp. | 9,030,437 | ||||||
| 385,373 | ON Semiconductor Corp. * | 3,622,506 | ||||||
| 163,088 | Skyworks Solutions, Inc. * | 6,119,062 | ||||||
| 149,089 | Teradyne, Inc. * † | 2,965,380 | ||||||
| 361,153 | Texas Instruments, Inc. | 17,028,364 | ||||||
| 255,586 | Xilinx, Inc. | 13,870,652 | ||||||
| 231,945,300 | ||||||||
| Total Common Stocks (Cost: $335,949,949) |
338,343,339 | |||||||
| MONEY MARKET FUND: 0.0% (Cost: $244,828) |
||||||||
| 244,828 | Dreyfus Government Cash Management Fund | 244,828 | ||||||
| Total Investments Before Collateral for Securities Loaned: 100.0% (Cost: $336,194,777) |
338,588,167 | |||||||
| Principal Amount | Value | |||||||
| SHORT-TERM INVESTMENTS HELD AS COLLATERAL FOR SECURITIES LOANED: 1.6% | ||||||||
| Repurchase Agreements: 1.6% | ||||||||
| $ | 269,478 | Repurchase agreement dated 3/31/14 with Credit Suisse Securities (USA) LLC, 0.05% due 4/1/14, proceeds $269,479; (collateralized by various U.S. government and agency obligations, 0.00%, due 8/15/23 to 5/15/43, valued at $274,868 including accrued interest) | $ | 269,478 | ||||
| 1,280,132 | Repurchase agreement dated 3/31/14 with Daiwa Capital Markets America, 0.12% due 4/1/14, proceeds $1,280,141; (collateralized by various U.S. government and agency obligations, 0.00% to 6.50%, due 3/27/17 to 3/1/48, valued at $1,305,735 including accrued interest) | 1,280,132 | ||||||
| 1,280,132 | Repurchase agreement dated 3/31/14 with HSBC Securities USA, Inc., 0.06% due 4/1/14, proceeds $1,280,136; (collateralized by various U.S. government and agency obligations, 0.00% to 9.38%, due 4/15/14 to 11/15/30, valued at $1,305,738 including accrued interest) | 1,280,132 | ||||||
| 1,280,132 | Repurchase agreement dated 3/31/14 with Nomura Securities Int., Inc., 0.10% due 4/1/14, proceeds $1,280,139; (collateralized by various U.S. government and agency obligations, 0.00% to 6.04%, due 4/1/14 to 5/1/47, valued at $1,305,735 including accrued interest) | 1,280,132 | ||||||
| 1,280,132 | Repurchase agreement dated 3/31/14 with RBS Securities, Inc., 0.08% due 4/1/14, proceeds $1,280,138; (collateralized by various U.S. government and agency obligations, 0.38% to 6.75%, due 4/23/14 to 7/15/32, valued at $1,305,738 including accrued interest) | 1,280,132 | ||||||
| Total Short-Term Investments Held as Collateral for Securities Loaned | ||||||||
| (Cost: $5,390,006) | 5,390,006 | |||||||
| Total Investments: 101.6% (Cost: $341,584,783) |
343,978,173 | |||||||
| Liabilities in excess of other assets: (1.6)% | (5,566,110 | ) | ||||||
| NET ASSETS: 100.0% | $ | 338,412,063 | ||||||
See Notes to Financial Statements
| 25 |
SEMICONDUCTOR ETF
SCHEDULE OF INVESTMENTS
March 31, 2014 (unaudited) (continued)
| ADR | American Depositary Receipt |
| USD | United States Dollar |
| * | Non-income producing |
| † | Security fully or partially on loan. Total market value of securities on loan is $5,250,341. |
| Summary of Investments by Sector Excluding Collateral for Securities Loaned (unaudited) | % of Investments | Value | ||||||
| Electronic Component - Semiconductors | 57.9 | % | $ | 196,220,906 | ||||
| Semiconductor Component - Integrated Circuits | 26.3 | 89,079,933 | ||||||
| Semiconductor Equipment | 15.7 | 53,042,500 | ||||||
| Money Market Fund | 0.1 | 244,828 | ||||||
| 100.0 | % | $ | 338,588,167 | |||||
The summary of inputs used to value the Fund’s investments as of March 31, 2014 is as follows:
| Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||||
| Common Stocks* | $ | 338,343,339 | $ | – | $ | – | $ | 338,343,339 | ||||||||||
| Money Market Fund | 244,828 | – | – | 244,828 | ||||||||||||||
| Repurchase Agreements | – | 5,390,006 | – | 5,390,006 | ||||||||||||||
| Total | $ | 338,588,167 | $ | 5,390,006 | $ | – | $ | 343,978,173 | ||||||||||
* See Schedule of Investments for security type and geographic sector breakouts.
See Notes to Financial Statements
| 26 |
SCHEDULE OF INVESTMENTS
March 31, 2014 (unaudited)
| Number of Shares | Value | |||||||
| COMMON STOCKS: 100.1% | ||||||||
| Communications: 4.7% | ||||||||
| 544,068 | eBay, Inc. * | $ | 30,054,316 | |||||
| Consumer, Non-cyclical: 34.9% | ||||||||
| 466,585 | Baxter International, Inc. | 34,331,324 | ||||||
| 820,135 | Coca-Cola Co. | 31,706,419 | ||||||
| 402,124 | Express Scripts Holding Co. * | 30,195,491 | ||||||
| 398,520 | Philip Morris International, Inc. | 32,626,834 | ||||||
| 871,567 | Sysco Corp. | 31,489,716 | ||||||
| 398,166 | The Procter & Gamble Co. | 32,092,180 | ||||||
| 1,894,934 | The Western Union Co. | 31,001,120 | ||||||
| 223,443,084 | ||||||||
| Energy: 20.2% | ||||||||
| 162,841 | Core Laboratories N.V. | 32,314,168 | ||||||
| 408,109 | National Oilwell Varco, Inc. | 31,779,448 | ||||||
| 346,065 | Schlumberger Ltd. | 33,741,338 | ||||||
| 860,861 | Spectra Energy Corp. | 31,800,205 | ||||||
| 129,635,159 | ||||||||
| Number of Shares | Value | |||||||
| Financial: 15.0% | ||||||||
| 252,062 | Berkshire Hathaway, Inc. * | $ | 31,500,188 | |||||
| 102,142 | BlackRock, Inc. | 32,121,616 | ||||||
| 597,213 | Franklin Resources, Inc. | 32,357,000 | ||||||
| 95,978,804 | ||||||||
| Industrial: 14.7% | ||||||||
| 601,540 | CH Robinson Worldwide, Inc. | 31,514,681 | ||||||
| 783,673 | Expeditors International of Washington, Inc. | 31,056,961 | ||||||
| 1,224,793 | General Electric Co. | 31,709,891 | ||||||
| 94,281,533 | ||||||||
| Technology: 5.1% | ||||||||
| 169,425 | International Business Machines Corp. | 32,612,618 | ||||||
| Utilities: 5.5% | ||||||||
| 1,045,416 | Exelon Corp. | 35,084,161 | ||||||
| Total Common Stocks (Cost: $613,317,891) |
641,089,675 | |||||||
| Liabilities in excess of other assets: (0.1)% | (862,614 | ) | ||||||
| NET ASSETS: 100.0% | $ | 640,227,061 | ||||||
* Non-income producing
| Summary of Investments by Sector Excluding Collateral for Securities Loaned (unaudited) | % of Investments | Value | ||||||
| Beverages - Non-Alcoholic | 4.9 | % | $ | 31,706,419 | ||||
| Commercial Services - Finance | 4.8 | 31,001,120 | ||||||
| Computer Services | 5.1 | 32,612,618 | ||||||
| Cosmetics & Toiletries | 5.0 | 32,092,180 | ||||||
| Diversified Manufacturing Operations | 4.9 | 31,709,891 | ||||||
| E-Commerce / Products | 4.7 | 30,054,316 | ||||||
| Electric - Integrated | 5.5 | 35,084,161 | ||||||
| Food - Wholesale / Distribution | 4.9 | 31,489,716 | ||||||
| Investment Management / Advisory Services | 10.1 | 64,478,616 | ||||||
| Medical - Drugs | 4.7 | 30,195,491 | ||||||
| Medical Products | 5.3 | 34,331,324 | ||||||
| Oil - Field Services | 10.3 | 66,055,506 | ||||||
| Oil Field Machine & Equipment | 5.0 | 31,779,448 | ||||||
| Pipelines | 5.0 | 31,800,205 | ||||||
| Reinsurance | 4.9 | 31,500,188 | ||||||
| Tobacco | 5.1 | 32,626,834 | ||||||
| Transport - Services | 9.8 | 62,571,642 | ||||||
| 100.0 | % | $ | 641,089,675 | |||||
The summary of inputs used to value the Fund’s investments as of March 31, 2014 is as follows:
| Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||||
| Common Stocks* | $ | 641,089,675 | $ | – | $ | – | $ | 641,089,675 | ||||||||||
* See Schedule of Investments for security type and industry sector breakouts.
See Notes to Financial Statements
| 27 |
MARKET VECTORS ETF TRUST
STATEMENTS OF ASSETS AND LIABILITIES
March 31, 2014 (unaudited)
| Bank and | Environmental | |||||||||||
| Brokerage | Biotech | Services | ||||||||||
| ETF | ETF | ETF | ||||||||||
| Assets: | ||||||||||||
| Investments, at value (1) (2) | $ | 15,677,872 | $ | 577,166,030 | $ | 19,751,275 | ||||||
| Short term investment held as collateral for securities loaned (3) | 625,548 | 24,250,086 | 1,428,432 | |||||||||
| Cash | – | – | – | |||||||||
| Cash denominated in foreign currency, at value (4) | – | – | – | |||||||||
| Receivables: | ||||||||||||
| Investment securities sold | – | – | 984,630 | |||||||||
| Shares sold | – | 315 | 3,232,637 | |||||||||
| Due from Adviser | 5,702 | – | – | |||||||||
| Dividends | 53,249 | 112,038 | 24,554 | |||||||||
| Prepaid expenses | 2,626 | 7,019 | 1,896 | |||||||||
| Total assets | 16,364,997 | 601,535,488 | 25,423,424 | |||||||||
| Liabilities: | ||||||||||||
| Payables: | ||||||||||||
| Investment securities purchased | – | – | 1,050,110 | |||||||||
| Collateral for securities loaned | 625,548 | 24,250,086 | 1,428,432 | |||||||||
| Line of credit | – | – | – | |||||||||
| Shares redeemed | – | – | 3,133,529 | |||||||||
| Due to Adviser | – | 167,651 | 612 | |||||||||
| Due to custodian | – | 8,374 | – | |||||||||
| Deferred Trustee fees | 1,156 | 22,964 | 2,086 | |||||||||
| Accrued expenses | 50,720 | 30,151 | 68,018 | |||||||||
| Total liabilities | 677,424 | 24,479,226 | 5,682,787 | |||||||||
| NET ASSETS | $ | 15,687,573 | $ | 577,056,262 | $ | 19,740,637 | ||||||
| Shares outstanding | 281,224 | 6,346,503 | 300,000 | |||||||||
| Net asset value, redemption and offering price per share | $ | 55.78 | $ | 90.93 | $ | 65.80 | ||||||
| Net assets consist of: | ||||||||||||
| Aggregate paid in capital | $ | 14,126,189 | $ | 463,598,605 | $ | 30,172,848 | ||||||
| Net unrealized appreciation (depreciation) | 1,246,434 | 50,053,249 | 2,241,035 | |||||||||
| Undistributed net investment income | 101,838 | 28,548 | 19,958 | |||||||||
| Accumulated net realized gain (loss) | 213,112 | 63,375,860 | (12,693,204 | ) | ||||||||
| $ | 15,687,573 | $ | 577,056,262 | $ | 19,740,637 | |||||||
| (1) Value of securities on loan | $ | 609,835 | $ | 23,180,702 | $ | 1,386,529 | ||||||
| (2) Cost of investments | $ | 14,431,438 | $ | 527,112,781 | $ | 17,510,240 | ||||||
| (3) Cost of short term investment held as collateral for securities loaned | $ | 625,548 | $ | 24,250,086 | $ | 1,428,432 | ||||||
| (4) Cost of cash denominated in foreign currency | $ | – | $ | – | $ | – | ||||||
See Notes to Financial Statements
| 28 |
| Gaming | Pharmaceutical | Retail | Semiconductor | Wide Moat | |||||||||||||||
| ETF | ETF | ETF | ETF | ETF | |||||||||||||||
| $ | 87,619,225 | $ | 312,804,562 | $ | 25,062,382 | $ | 338,588,167 | $ | 641,089,675 | ||||||||||
| – | 1,130,339 | – | 5,390,006 | – | |||||||||||||||
| 654,978 | – | – | – | 241 | |||||||||||||||
| 18,546 | – | – | – | – | |||||||||||||||
| 1,799 | – | – | – | – | |||||||||||||||
| – | 2,919,904 | – | 732 | 532 | |||||||||||||||
| – | – | 2,817 | – | – | |||||||||||||||
| 269,889 | 1,422,758 | 27,111 | 2,172 | 1,245,969 | |||||||||||||||
| 2,256 | 4,663 | 2,719 | 5,371 | 7,990 | |||||||||||||||
| 88,566,693 | 318,282,226 | 25,095,029 | 343,986,448 | 642,344,407 | |||||||||||||||
| 498,347 | – | – | – | – | |||||||||||||||
| – | 1,130,339 | – | 5,390,006 | – | |||||||||||||||
| 315,436 | 758,015 | – | – | 1,817,736 | |||||||||||||||
| – | 1,576,878 | – | – | – | |||||||||||||||
| 33,704 | 77,429 | – | 76,570 | 229,409 | |||||||||||||||
| – | – | – | – | – | |||||||||||||||
| 5,284 | 15,236 | 2,844 | 18,261 | 18,617 | |||||||||||||||
| 99,223 | 67,387 | 54,842 | 89,548 | 51,584 | |||||||||||||||
| 951,994 | 3,625,284 | 57,686 | 5,574,385 | 2,117,346 | |||||||||||||||
| $ | 87,614,699 | $ | 314,656,942 | $ | 25,037,343 | $ | 338,412,063 | $ | 640,227,061 | ||||||||||
| 1,700,000 | 5,388,138 | 421,531 | 7,420,937 | 21,850,000 | |||||||||||||||
| $ | 51.54 | $ | 58.40 | $ | 59.40 | $ | 45.60 | $ | 29.30 | ||||||||||
| $ | 65,007,164 | $ | 249,111,683 | $ | 19,581,513 | $ | 305,007,285 | $ | 593,557,781 | ||||||||||
| 20,200,279 | 47,484,741 | (1,086,869 | ) | 2,393,390 | 27,771,784 | ||||||||||||||
| 1,047,416 | 2,136,151 | 81,409 | 1,041,412 | 3,328,867 | |||||||||||||||
| 1,359,840 | 15,924,367 | 6,461,290 | 29,969,976 | 15,568,629 | |||||||||||||||
| $ | 87,614,699 | $ | 314,656,942 | $ | 25,037,343 | $ | 338,412,063 | $ | 640,227,061 | ||||||||||
| $ | – | $ | 1,105,736 | $ | – | $ | 5,250,341 | $ | – | ||||||||||
| $ | 67,419,342 | $ | 265,319,821 | $ | 26,149,251 | $ | 336,194,777 | $ | 613,317,891 | ||||||||||
| $ | – | $ | 1,130,339 | $ | – | $ | 5,390,006 | $ | – | ||||||||||
| $ | 18,538 | $ | – | $ | – | $ | – | $ | – | ||||||||||
See Notes to Financial Statements
| 29 |
MARKET VECTORS ETF TRUST
For the Six Months Ended March 31, 2014 (unaudited)
| Bank and | Environmental | |||||||||||
| Brokerage | Biotech | Services | ||||||||||
| ETF | ETF | ETF | ||||||||||
| Income: | ||||||||||||
| Dividends | $ | 208,802 | $ | 532,313 | $ | 110,020 | ||||||
| Securities lending income | 3,950 | 426,550 | 5,085 | |||||||||
| Foreign taxes withheld | (7,920 | ) | – | (805 | ) | |||||||
| Total income | 204,832 | 958,863 | 114,300 | |||||||||
| Expenses: | ||||||||||||
| Management fees | 26,623 | 915,879 | 47,964 | |||||||||
| Professional fees | 22,415 | 30,357 | 25,688 | |||||||||
| Insurance | 164 | 2,965 | 169 | |||||||||
| Trustees’ fees and expenses | 543 | 3,572 | 341 | |||||||||
| Reports to shareholders | 3,777 | 18,767 | 3,359 | |||||||||
| Indicative optimized portfolio value fee | 2,014 | 2,123 | – | |||||||||
| Custodian fees | 2,703 | 13,582 | 2,125 | |||||||||
| Registration fees | 9,472 | 9,472 | 2,520 | |||||||||
| Transfer agent fees | 1,209 | 1,186 | 1,209 | |||||||||
| Fund accounting fees | 15,112 | 23,305 | 15,112 | |||||||||
| Interest | 224 | 6,025 | 143 | |||||||||
| Other | 2,674 | 4,007 | 205 | |||||||||
| Total expenses | 86,930 | 1,031,240 | 98,835 | |||||||||
| Waiver of management fees | (26,623 | ) | (109,337 | ) | (45,933 | ) | ||||||
| Expenses assumed by the Adviser | (33,460 | ) | – | – | ||||||||
| Net expenses | 26,847 | 921,903 | 52,902 | |||||||||
| Net investment income | 177,985 | 36,960 | 61,398 | |||||||||
| Net realized gain (loss) on: | ||||||||||||
| Investments | 4,005 | (336,124 | ) | (877,972 | ) | |||||||
| In-kind redemptions | 206,277 | 63,711,984 | 578,646 | |||||||||
| Foreign currency transactions and foreign denominated assets and liabilities | – | – | – | |||||||||
| Net realized gain (loss) | 210,282 | 63,375,860 | (299,326 | ) | ||||||||
| Net change in unrealized appreciation (depreciation) on: | ||||||||||||
| Investments | 867,580 | (27,679,348 | ) | 1,474,173 | ||||||||
| Foreign currency transactions and foreign denominated assets and liabilities | – | – | – | |||||||||
| Net change in unrealized appreciation (depreciation) | 867,580 | (27,679,348 | ) | 1,474,173 | ||||||||
| Net Increase in Net Assets Resulting from Operations | $ | 1,255,847 | $ | 35,733,472 | $ | 1,236,245 | ||||||
See Notes to Financial Statements
| 30 |
| Gaming | Pharmaceutical | Retail | Semiconductor | Wide Moat | |||||||||||||||
| ETF | ETF | ETF | ETF | ETF | |||||||||||||||
| $ | 1,418,611 | $ | 3,689,805 | $ | 281,304 | $ | 2,588,133 | $ | 5,801,190 | ||||||||||
| 193 | 2,901 | – | 24,455 | 722,505 | |||||||||||||||
| (17,782 | ) | (186,842 | ) | – | – | – | |||||||||||||
| 1,401,022 | 3,505,864 | 281,304 | 2,612,588 | 6,523,695 | |||||||||||||||
| 194,678 | 475,683 | 65,559 | 515,612 | 1,181,530 | |||||||||||||||
| 29,215 | 32,739 | 23,119 | 40,803 | 26,608 | |||||||||||||||
| 544 | 2,552 | 309 | 2,968 | 2,333 | |||||||||||||||
| 1,269 | 4,570 | 744 | 7,470 | 2,932 | |||||||||||||||
| 9,063 | 17,377 | 3,324 | 20,969 | 24,697 | |||||||||||||||
| 9,720 | 2,014 | 2,014 | 2,021 | 5,035 | |||||||||||||||
| 13,923 | 10,290 | 2,699 | 14,402 | 10,176 | |||||||||||||||
| 3,025 | 9,472 | 9,472 | 9,509 | 2,521 | |||||||||||||||
| 1,210 | 1,209 | 1,208 | 1,211 | 1,234 | |||||||||||||||
| 18,133 | 15,719 | 15,112 | 18,496 | 21,768 | |||||||||||||||
| 1,365 | 6,040 | 50 | 3,431 | 5,172 | |||||||||||||||
| 2,099 | 3,760 | 2,686 | 4,407 | 13,412 | |||||||||||||||
| 284,244 | 581,425 | 126,296 | 641,299 | 1,297,418 | |||||||||||||||
| (29,796 | ) | (99,701 | ) | (60,687 | ) | (122,255 | ) | (5,691 | ) | ||||||||||
| – | – | – | – | – | |||||||||||||||
| 254,448 | 481,724 | 65,609 | 519,044 | 1,291,727 | |||||||||||||||
| 1,146,574 | 3,024,140 | 215,695 | 2,093,544 | 5,231,968 | |||||||||||||||
| 220,127 | 3,460,763 | (18,905 | ) | (70,763 | ) | (21,527,779 | ) | ||||||||||||
| 2,202,769 | 12,468,542 | 6,490,535 | 30,178,269 | 37,164,514 | |||||||||||||||
| (3,460 | ) | – | – | – | – | ||||||||||||||
| 2,419,436 | 15,929,305 | 6,471,630 | 30,107,506 | 15,636,735 | |||||||||||||||
| 2,013,229 | 35,733,894 | (3,333,646 | ) | 11,134,430 | 24,001,522 | ||||||||||||||
| (2,964 | ) | – | – | – | – | ||||||||||||||
| 2,010,265 | 35,733,894 | (3,333,646 | ) | 11,134,430 | 24,001,522 | ||||||||||||||
| $ | 5,576,275 | $ | 54,687,339 | $ | 3,353,679 | $ | 43,335,480 | $ | 44,870,225 | ||||||||||
See Notes to Financial Statements
| 31 |
MARKET VECTORS ETF TRUST
STATEMENTS OF CHANGES IN NET ASSETS
| Bank and Brokerage ETF | Biotech ETF | |||||||||||||||
| For the Six | For the Year | For the Six | For the Year | |||||||||||||
| Months Ended | Ended | Months Ended | Ended | |||||||||||||
| March 31, | September 30, | March 31, | September 30, | |||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Operations: | ||||||||||||||||
| Net investment income | $ | 177,985 | $ | 528,090 | $ | 36,960 | $ | 30,341 | ||||||||
| Net realized gain (loss) | 210,282 | 5,246,433 | 63,375,860 | 52,920,155 | ||||||||||||
| Net change in unrealized appreciation (depreciation) | 867,580 | (645,984 | ) | (27,679,348 | ) | 54,634,716 | ||||||||||
| Net increase in net assets resulting from operations | 1,255,847 | 5,128,539 | 35,733,472 | 107,585,212 | ||||||||||||
| Dividends and Distributions to shareholders: | ||||||||||||||||
| Dividends from net investment income | (172,812 | ) | (920,773 | ) | (16,339 | ) | (47,637 | ) | ||||||||
| Distributions from net realized capital gains | – | – | – | (439,319 | ) | |||||||||||
| Total Dividends and Distributions | (172,812 | ) | (920,773 | ) | (16,339 | ) | (486,956 | ) | ||||||||
| Share transactions:** | ||||||||||||||||
| Proceeds from sale of shares | 5,481,318 | 61,677,438 | 194,262,926 | 264,363,119 | ||||||||||||
| Cost of shares redeemed | (5,481,318 | ) | (77,513,285 | ) | (87,013,246 | ) | (69,650,169 | ) | ||||||||
| Increase (Decrease) in net assets resulting from share transactions | – | (15,835,847 | ) | 107,249,680 | 194,712,950 | |||||||||||
| Total increase (decrease) in net assets | 1,083,035 | (11,628,081 | ) | 142,966,813 | 301,811,206 | |||||||||||
| Net Assets, beginning of period | 14,604,538 | 26,232,619 | 434,089,449 | 132,278,243 | ||||||||||||
| Net Assets, end of period† | $ | 15,687,573 | $ | 14,604,538 | $ | 577,056,262 | $ | 434,089,449 | ||||||||
| † Including undistributed net investment income | $ | 101,838 | $ | 96,665 | $ | 28,548 | $ | 7,927 | ||||||||
| ** Shares of Common Stock Issued (no par value) | ||||||||||||||||
| Shares sold | 100,000 | 1,300,000 | 2,050,000 | 3,850,000 | ||||||||||||
| Shares redeemed | (100,000 | ) | (1,650,000 | ) | (950,000 | ) | (1,050,000 | ) | ||||||||
| Net increase (decrease) | – | (350,000 | ) | 1,100,000 | 2,800,000 | |||||||||||
See Notes to Financial Statements
| 32 |
| Environmental Services ETF | Gaming ETF | ||||||||||||||
| For the Six | For the Year | For the Six | For the Year | ||||||||||||
| Months Ended | Ended | Months Ended | Ended | ||||||||||||
| March 31, | September 30, | March 31, | September 30, | ||||||||||||
| 2014 | 2013 | 2014 | 2013 | ||||||||||||
| (unaudited) | (unaudited) | ||||||||||||||
| $ | 61,398 | $ | 301,233 | $ | 1,146,574 | $ | 1,479,286 | ||||||||
| (299,326 | ) | (1,127,528 | ) | 2,419,436 | 10,324,363 | ||||||||||
| 1,474,173 | 5,499,740 | 2,010,265 | 7,886,635 | ||||||||||||
| 1,236,245 | 4,673,445 | 5,576,275 | 19,690,284 | ||||||||||||
| (225,000 | ) | (315,200 | ) | (802,900 | ) | (2,349,400 | ) | ||||||||
| – | – | – | – | ||||||||||||
| (225,000 | ) | (315,200 | ) | (802,900 | ) | (2,349,400 | ) | ||||||||
| 9,719,047 | 13,968,094 | 31,039,908 | 10,933,522 | ||||||||||||
| (9,719,047 | ) | (19,457,273 | ) | (5,181,083 | ) | (31,185,434 | ) | ||||||||
| – | (5,489,179 | ) | 25,858,825 | (20,251,912 | ) | ||||||||||
| 1,011,245 | (1,130,934 | ) | 30,632,200 | (2,911,028 | ) | ||||||||||
| 18,729,392 | 19,860,326 | 56,982,499 | 59,893,527 | ||||||||||||
| $ | 19,740,637 | $ | 18,729,392 | $ | 87,614,699 | $ | 56,982,499 | ||||||||
| $ | 19,958 | $ | 183,560 | $ | 1,047,416 | $ | 703,742 | ||||||||
| 150,000 | 250,000 | 600,000 | 250,000 | ||||||||||||
| (150,000 | ) | (350,000 | ) | (100,000 | ) | (800,000 | ) | ||||||||
| – | (100,000 | ) | 500,000 | (550,000 | ) | ||||||||||
See Notes to Financial Statements
| 33 |
MARKET VECTORS ETF TRUST
STATEMENTS OF CHANGES IN NET ASSETS
(continued)
| Pharmaceutical ETF | Retail ETF | |||||||||||||||
| For the Six | For the Year | For the Six | For the Year | |||||||||||||
| Months Ended | Ended | Months Ended | Ended | |||||||||||||
| March 31, | September 30, | March 31, | September 30, | |||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Operations: | ||||||||||||||||
| Net investment income | $ | 3,024,140 | $ | 5,025,672 | $ | 215,695 | $ | 529,152 | ||||||||
| Net realized gain | 15,929,305 | 34,500,373 | 6,471,630 | 3,893,109 | ||||||||||||
| Net change in unrealized appreciation (depreciation) | 35,733,894 | 3,117,967 | (3,333,646 | ) | 2,267,222 | |||||||||||
| Net increase in net assets resulting from operations | 54,687,339 | 42,644,012 | 3,353,679 | 6,689,483 | ||||||||||||
| Dividends to shareholders: | ||||||||||||||||
| Dividends from net investment income | (1,915,500 | ) | (8,761,804 | ) | (408,291 | ) | (695,015 | ) | ||||||||
| Share transactions:** | ||||||||||||||||
| Proceeds from sale of shares | 51,901,212 | 225,798,190 | 47,867,803 | 112,110,123 | ||||||||||||
| Cost of shares redeemed | (31,283,396 | ) | (192,310,309 | ) | (68,471,650 | ) | (96,571,599 | ) | ||||||||
| Increase (Decrease) in net assets resulting from share transactions | 20,617,816 | 33,487,881 | (20,603,847 | ) | 15,538,524 | |||||||||||
| Total increase (decrease) in net assets | 73,389,655 | 67,370,089 | (17,658,459 | ) | 21,532,992 | |||||||||||
| Net Assets, beginning of period | 241,267,287 | 173,897,198 | 42,695,802 | 21,162,810 | ||||||||||||
| Net Assets, end of period† | $ | 314,656,942 | $ | 241,267,287 | $ | 25,037,343 | $ | 42,695,802 | ||||||||
| † Including undistributed net investment income | $ | 2,136,151 | $ | 1,027,511 | $ | 81,409 | $ | 274,005 | ||||||||
| ** Shares of Common Stock Issued (no par value) | ||||||||||||||||
| Shares sold | 950,000 | 5,100,000 | 800,000 | 2,350,000 | ||||||||||||
| Shares redeemed | (600,000 | ) | (4,300,000 | ) | (1,150,000 | ) | (2,050,000 | ) | ||||||||
| Net increase (decrease) | 350,000 | 800,000 | (350,000 | ) | 300,000 | |||||||||||
See Notes to Financial Statements
| 34 |
| Semiconductor ETF | Wide Moat ETF | ||||||||||||||
| For the Six | For the Year | For the Six | For the Year | ||||||||||||
| Months Ended | Ended | Months Ended | Ended | ||||||||||||
| March 31, | September 30, | March 31, | September 30, | ||||||||||||
| 2014 | 2013 | 2014 | 2013 | ||||||||||||
| (unaudited) | (unaudited) | ||||||||||||||
| $ | 2,093,544 | $ | 5,548,592 | $ | 5,231,968 | $ | 2,746,960 | ||||||||
| 30,107,506 | 64,762,483 | 15,636,735 | 41,521,346 | ||||||||||||
| 11,134,430 | 8,616,081 | 24,001,522 | 3,040,032 | ||||||||||||
| 43,335,480 | 78,927,156 | 44,870,225 | 47,308,338 | ||||||||||||
| (4,956,297 | ) | (6,734,656 | ) | (4,225,050 | ) | (673,200 | ) | ||||||||
| 971,904,232 | 1,924,520,767 | 238,041,440 | 267,100,368 | ||||||||||||
| (933,887,958 | ) | (2,017,093,507 | ) | (2,854,383 | ) | (16,122,209 | ) | ||||||||
| 38,016,274 | (92,572,740 | ) | 235,187,057 | 250,978,159 | |||||||||||
| 76,395,457 | (20,380,240 | ) | 275,832,232 | 297,613,297 | |||||||||||
| 262,016,606 | 282,396,846 | 364,394,829 | 66,781,532 | ||||||||||||
| $ | 338,412,063 | $ | 262,016,606 | $ | 640,227,061 | $ | 364,394,829 | ||||||||
| $ | 1,041,412 | $ | 3,904,165 | $ | 3,328,867 | $ | 2,321,949 | ||||||||
| 23,150,000 | 54,350,000 | 8,500,000 | 11,050,000 | ||||||||||||
| (22,300,000 | ) | (56,700,000 | ) | (100,000 | ) | (700,000 | ) | ||||||||
| 850,000 | (2,350,000 | ) | 8,400,000 | 10,350,000 | |||||||||||
See Notes to Financial Statements
| 35 |
MARKET VECTORS ETF TRUST
For a share outstanding throughout each period:
| (a) | Commencement of operations |
| (b) | Total return is calculated assuming an initial investment made at the net asset value at the beginning of period, reinvestment of any dividends and distributions at net asset value on the dividend/distributions payment date and a redemption at the net asset value on the last day of the period. The return does not reflect the deduction of taxes that a shareholder would pay on Fund dividends/distributions or the redemption of Fund shares. |
| (c) | Not annualized |
| (d) | Annualized |
| # | On February 14, 2012, the Fund effected a share split as described in the Notes to Financial Statements. Per share data has been adjusted to give effect to the share split (see Note 10). |
See Notes to Financial Statements
| 36 |
MARKET VECTORS ETF TRUST
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
| (a) | Total return is calculated assuming an initial investment made at the net asset value at the beginning of period, reinvestment of any dividends and distributions at net asset value on the dividend/distributions payment date and a redemption at the net asset value on the last day of the period. The return does not reflect the deduction of taxes that a shareholder would pay on Fund dividends/distributions or the redemption of Fund shares. |
| (b) | Not annualized |
| (c) | Annualized |
See Notes to Financial Statements
| 37 |
MARKET VECTORS ETF TRUST
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
| (a) | Commencement of operations |
| (b) | Total return is calculated assuming an initial investment made at the net asset value at the beginning of period, reinvestment of any dividends and distributions at net asset value on the dividend/distributions payment date and a redemption at the net asset value on the last day of the period. The return does not reflect the deduction of taxes that a shareholder would pay on Fund dividends/distributions or the redemption of Fund shares. |
| (c) | Not annualized |
| (d) | Annualized |
| # | On February 14, 2012, the Fund effected a share split as described in the Notes to Financial Statements. Per share data has been adjusted to give effect to the share split (see Note 10). |
See Notes to Financial Statements
| 38 |
MARKET VECTORS ETF TRUST
FINANCIAL HIGHLIGHTS
For a share outstanding throughout each period:
| (a) | Commencement of operations |
| (b) | Total return is calculated assuming an initial investment made at the net asset value at the beginning of period, reinvestment of any dividends and distributions at net asset value on the dividend/distributions payment date and a redemption at the net asset value on the last day of the period. The return does not reflect the deduction of taxes that a shareholder would pay on Fund dividends/distributions or the redemption of Fund shares. |
| (c) | Not annualized |
| (d) | Annualized |
See Notes to Financial Statements
| 39 |
MARKET VECTORS ETF TRUST
March 31, 2014 (unaudited)
Note 1—Fund Organization—Market Vectors ETF Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. The Trust was incorporated in Delaware as a statutory trust on March 15, 2001. The Trust operates as a series fund, and as of March 31, 2014, offers fifty-eight investment portfolios, each of which represents a separate series of the Trust.
These financial statements relate only to the following investment portfolios: Bank and Brokerage ETF, Biotech ETF, Environmental Services ETF, Gaming ETF, Pharmaceutical ETF, Retail ETF, Semiconductor ETF and Wide Moat ETF, (each a “Fund” and, together, the “Funds”). Each Fund was created to provide investors with the opportunity to purchase a security representing a proportionate undivided interest in a portfolio of securities consisting of substantially all of the common stocks in substantially the same weighting, in an index published by the NYSE Euronext, Morningstar, or Market Vectors Index Solutions GmbH, a wholly-owned subsidiary of Van Eck Associates Corporation (the “Adviser”).
The Funds’ commencement of operations dates and their respective indices are presented below:
| Commencement | ||||
| Fund | of Operations | Index | ||
| Bank and Brokerage ETF | December 20, 2011 | Market Vectors US Listed Bank and Brokerage 25 Index* | ||
| Biotech ETF | December 20, 2011 | Market Vectors US Listed Biotech 25 Index* | ||
| Environmental Services ETF** | October 10, 2006 | NYSE Arca Environmental Services Index | ||
| Gaming ETF** | January 22, 2008 | Market Vectors Global Gaming Index* | ||
| Pharmaceutical ETF | December 20, 2011 | Market Vectors US Listed Pharmaceutical 25 Index* | ||
| Retail ETF | December 20, 2011 | Market Vectors US Listed Retail 25 Index* | ||
| Semiconductor ETF | December 20, 2011 | Market Vectors US Listed Semiconductor 25 Index* | ||
| Wide Moat ETF *** | April 24, 2012 | Morningstar® Wide Moat Focus IndexSM |
| * | Published by Market Vectors Index Solutions GmbH | |
| ** | Effective January 1, 2012, the Fund changed its fiscal year end from December 31 to September 30. |
Note 2—Significant Accounting Policies—The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the Funds.
| A. | Security Valuation—The Funds value their investments in securities and other assets and liabilities carried at fair value daily. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. Securities traded on national exchanges or traded on the NASDAQ National Market System are valued at the last sales price as reported at the close of each business day. Securities traded on the NASDAQ Stock Market are valued at the NASDAQ official closing price. Over-the-counter securities not included in the NASDAQ National Market System and listed securities for which no sale was reported are valued at the mean of the bid and ask prices. To the extent these securities are actively traded they are categorized as Level 1 in the fair value hierarchy (described below). Certain foreign securities, whose values may be affected by market direction or events occurring before the Funds’ pricing time (4:00 p.m. Eastern Standard Time) but after the last close of the securities’ primary market, are fair valued using a pricing service and are categorized as Level 2 in the fair value hierarchy. The pricing service, using methods approved by the Board of Trustees, considers the correlation of the trading patterns of the foreign security to intraday trading in the U.S. markets, based on indices of domestic securities and other appropriate indicators such as prices of relevant ADR’s and futures contracts. The Funds may also fair value securities in other situations, such as, when a particular foreign market is closed but the Fund is open. Short-term obligations with more than sixty days remaining to maturity are valued at market value. Short-term obligations with sixty days or less to maturity are valued at amortized cost, which with accrued interest approximates fair value. Money market fund investments are valued at net asset value and are considered to be Level 1 in the fair value hierarchy. Forward foreign currency contracts are valued at the spot currency rate plus an amount (“points”), which reflects the differences in the interest rates between the U.S. and foreign markets and are classified as Level 2 in the fair value hierarchy. Securities for which quotations are not available are stated at fair value as determined by the Pricing Committee of the Adviser appointed by the Board of Trustees. The Pricing Committee provides oversight of the Funds’ valuation policies and |
| 40 |
| procedures, which are approved by the Funds’ Board of Trustees. Among other things, these procedures allow the Funds to utilize independent pricing services, quotations from securities dealers, and other market sources to determine fair value. The Pricing Committee convenes regularly to review the fair value of financial instruments for which market prices are not readily available. The Pricing Committee employs various methods for calibrating the valuation approaches utilized to determine fair value, including a regular review of key inputs and assumptions, transactional back-testing and disposition analysis. | |
| Certain factors such as economic conditions, political events, market trends, the nature of and duration of any restrictions on disposition, trading in similar securities of the issuer or comparable issuers and other security specific information are used to determine the fair value of these securities. Depending on the relative significance of valuation inputs, these securities may be classified either as Level 2 or Level 3 in the fair value hierarchy. The price which the Funds may realize upon sale of an investment may differ materially from the value presented in the Schedules of Investments. | |
| The Funds utilize various methods to measure the fair value of its investments on a recurring basis which includes a hierarchy that prioritizes inputs to valuation methods used to measure fair value. The fair value hierarchy gives highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The transfers between levels of the fair value hierarchy assume the financial instruments were transferred at the beginning of the reporting period. The three levels of the fair value hierarchy are described below: | |
| Level 1 - Quoted prices in active markets for identical securities. | |
| Level 2 - Significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). | |
| Level 3 - Significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). | |
| A summary of the inputs, the levels used to value the Funds’ investments, and transfers between levels are located in the Schedules of Investments. Additionally, tables that reconcile the valuation of the Funds’ Level 3 investments and that present additional information about valuation methodologies and unobservable inputs, if applicable, are located in the Schedules of Investments. | |
| B. | Federal Income Taxes—It is each Fund’s policy to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable income to its shareholders. Therefore, no federal income tax provision is required. |
| C. | Dividends and Distributions to Shareholders—Dividends to shareholders from net investment income and distributions from net realized capital gains, if any, are declared and paid annually by each Fund (except Bank and Brokerage ETF and Pharmaceutical ETF which are paid quarterly). Income dividends and capital gain distributions are determined in accordance with U.S. income tax regulations, which may differ from such amounts determined in accordance with GAAP. |
| D. | Currency Translation—Assets and liabilities denominated in foreign currencies and commitments under foreign currency contracts are translated into U.S. dollars at the closing prices of such currencies each business day. Purchases and sales of investments are translated at the exchange rates prevailing when such investments are acquired or sold. Foreign denominated income and expenses are translated at the exchange rates prevailing when accrued. The portion of realized and unrealized gains and losses on investments that result from fluctuations in foreign currency exchange rates is not separately disclosed in the financial statements. Recognized gains or losses attributable to foreign currency fluctuations on foreign currency denominated assets, other than investments, and liabilities are recorded as net realized gain (loss) on foreign currency transactions and foreign denominated assets and liabilities in the Statements of Operations. |
| E. | Restricted Securities—The Funds may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are |
| 41 |
MARKET VECTORS ETF TRUST
NOTES TO FINANCIAL STATEMENTS
March 31, 2014 (continued) (unaudited)
| registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities, if any, is included at the end of each Fund’s Schedule of Investments. | |
| F. | Repurchase Agreements—The Funds may enter into repurchase agreements with financial institutions, deemed to be creditworthy by the Adviser, to generate income from their excess cash balances and to invest securities lending cash collateral. A repurchase agreement is an agreement under which a Fund acquires securities from a seller, subject to resale to the seller at an agreed upon price and date. A Fund, through its custodian/securities lending agent, takes possession of securities collateralizing the repurchase agreement. Pursuant to the terms of the repurchase agreement, such securities must have an aggregate market value greater than or equal to the terms of the repurchase price plus accrued interest at all times. If the value of the underlying securities falls below the value of the repurchase price plus accrued interest, the Funds will require the seller to deposit additional collateral by the next business day. If the request for additional collateral is not met, or the seller defaults on its repurchase obligation, the Funds maintain their right to sell the underlying securities at market value and may claim any resulting loss against the seller. Repurchase agreements held as of March 31, 2014 are reflected in the Schedules of Investments. |
| G. | Use of Derivative Instruments—The Funds may make investments in derivative instruments, including, but not limited to, options, futures, swaps and other derivatives relating to foreign currency transactions. A derivative is an instrument whose value is derived from underlying assets, indices, reference rates or a combination of these factors. Derivative instruments may be privately negotiated contracts (often referred to as over-the-counter (“OTC”) derivatives) or they may be listed and traded on an exchange. Derivative contracts may involve future commitments to purchase or sell financial instruments at specified terms on a specified date, or to exchange interest payment streams or currencies based on a notional or contractual amount. Derivative instruments may involve a high degree of financial risk. The use of derivative instruments also involves the risk of loss if the Adviser is incorrect in its expectation of the timing or level of fluctuations in securities prices, interest rates or currency prices. Investments in derivative instruments also include the risk of default by the counterparty, the risk that the investment may not be liquid and the risk that a small movement in the price of the underlying security or benchmark may result in a disproportionately large movement, unfavorable or favorable, in the price of the derivative instruments. The Funds held no derivative instruments during the period ended March 31, 2014. |
| H. | Offsetting Assets and Liabilities—In the ordinary course of business, the Funds enter into transactions subject to enforceable master netting agreements or other similar agreements. Generally, the right of setoff in those agreements allows the Funds to set off any exposure to a specific counterparty with any collateral received or delivered to that counterparty based on the terms of the agreements. The Funds may pledge or receive cash and/or securities as collateral for derivative instruments, securities lending and repurchase agreements. For financial reporting purposes, the Funds do not offset securities lending or repurchase agreement assets and liabilities subject to enforceable master netting agreements or other similar agreements in the Statements of Assets and Liabilities. Collateral held at March 31, 2014 is presented in the Schedules of Investments. |
| The tables below present both gross and net information about the derivative instruments, securities lending transactions and repurchase agreements eligible for offset in the Statements of Assets and Liabilities, subject to master netting agreement or similar agreement, as well as financial collateral received or pledged (including cash collateral and margin) as of March 31, 2014. Collateral is disclosed up to 100% of the net amount of unrealized gain/loss or market value of the respective financial instruments. In general, collateral received or pledged exceeds the net amount of the unrealized gain/loss or market value of financial instruments. Refer to the Schedules of Investments and Statements of Assets and Liabilities for collateral received or pledged as of March 31, 2014, as well as related disclosures in Note 9 (Securities Lending) and Note 2F (Repurchase Agreements). |
| 42 |
| Gross | ||||||||||||||||||
| Amounts | Net Amounts | |||||||||||||||||
| Offset in the | of Assets | Financial | ||||||||||||||||
| Gross | Statements | Presented in | Instruments | |||||||||||||||
| Amounts of | of Assets | the Statements | and Cash | |||||||||||||||
| Recognized | and | of Assets and | Collateral | Net | ||||||||||||||
| Fund | Description | Assets | Liabilities | Liabilities | Received* | Amount | ||||||||||||
| Bank and Brokerage ETF | Securities Lending | $ | 609,835 | $ | – | $ | 609,835 | $ | (609,835 | ) | $ | – | ||||||
| Biotech ETF | Securities Lending | 23,180,702 | – | 23,180,702 | (23,180,702 | ) | – | |||||||||||
| Repurchase Agreements | 24,250,086 | – | 24,250,086 | (24,250,086 | ) | – | ||||||||||||
| Environmental Services ETF | Securities Lending | 1,386,529 | – | 1,386,529 | (1,386,529 | ) | – | |||||||||||
| Pharmaceutical ETF | Securities Lending | 1,105,736 | – | 1,105,736 | (1,105,736 | ) | – | |||||||||||
| Repurchase Agreements | 1,130,339 | – | 1,130,339 | (1,130,339 | ) | – | ||||||||||||
| Semiconductor ETF | Securities Lending | 5,250,341 | – | 5,250,341 | (5,250,341 | ) | – | |||||||||||
| Repurchase Agreements | 5,390,006 | – | 5,390,006 | (5,390,006 | ) | – | ||||||||||||
* Gross amounts not offset in the Statements of Assets and Liabilities
| I. | Other—Security transactions are accounted for on trade date. Transactions in certain securities may take longer than the customary settlement cycle to be completed. The counterparty is required to collateralize such trades with cash in excess of the market value of the transaction, which is held at the custodian and marked to market daily. Realized gains and losses are calculated on the identified cost basis. Dividend income is recorded on the ex-dividend date except that certain dividends from foreign securities are recognized upon notification of the ex-dividend date/rate. Interest income, including amortization of premiums and discounts, is accrued as earned. |
| In the normal course of business, the Funds enter into contracts that contain a variety of general indemnifications. The Funds’ maximum exposure under these agreements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Adviser believes the risk of loss under these arrangements to be remote. |
Note 3—Investment Management and Other Agreements—The Adviser is the investment adviser to the Funds. The Adviser receives a management fee, calculated daily and payable monthly based on an annual rate of 0.35% of each Fund’s average daily net assets (except for annual rates of 0.45% for Wide Moat ETF, 0.50% for Environmental Services ETF and Gaming ETF). The Adviser has agreed, at least until February 1, 2015, to voluntarily waive or limit its fees and to assume as its own expense certain expenses otherwise payable by the Funds so that each Fund’s total annual operating expenses does not exceed the expense caps (excluding interest expense, trading expenses, taxes and extraordinary expenses) listed in the table below.
The expense caps and the amounts waived/assumed by the Adviser for the period ended March 31, 2014, are as follows:
| Waiver of | Expenses Assumed | |||||||||
| Fund | Expense Cap | Management Fees | by the Adviser | |||||||
| Bank and Brokerage ETF | 0.35 | % | $ | 26,623 | $33,460 | |||||
| Biotech ETF | 0.35 | 109,337 | – | |||||||
| Environmental Services ETF | 0.55 | 45,933 | – | |||||||
| Gaming ETF | 0.65 | 29,796 | – | |||||||
| Pharmaceutical ETF | 0.35 | 99,701 | – | |||||||
| Retail ETF | 0.35 | 60,687 | – | |||||||
| Semiconductor ETF | 0.35 | 122,255 | – | |||||||
| Wide Moat ETF | 0.49 | 5,691 | – | |||||||
In addition, Van Eck Securities Corporation, an affiliate of the Adviser, acts as the Funds’ Distributor. Certain officers and a Trustee of the Trust are officers, directors or stockholders of the Adviser and Distributor.
Note 4—Investments—For the period ended March 31, 2014, the cost of purchases and proceeds from sales of investments other than U.S. government obligations and short-term obligations (excluding in-kind transactions described in Note 6) were as follows:
| 43 |
MARKET VECTORS ETF TRUST
NOTES TO FINANCIAL STATEMENTS
March 31, 2014 (continued) (unaudited)
| Cost of Investments | Proceeds from | |||||||
| Fund | Purchased | Investments Sold | ||||||
| Bank and Brokerage ETF | $ | 1,618,232 | $ | 152,234 | ||||
| Biotech ETF | 81,807,632 | 41,585,250 | ||||||
| Environmental Services ETF | 1,178,919 | 1,965,557 | ||||||
| Gaming ETF | 16,028,281 | 12,655,640 | ||||||
| Pharmaceutical ETF | 41,302,759 | 25,647,166 | ||||||
| Retail ETF | 2,917,596 | 811,289 | ||||||
| Semiconductor ETF | 34,638,705 | 17,616,376 | ||||||
| Wide Moat ETF | 1,832,739 | 49,151,178 | ||||||
Note 5—Income Taxes—As of March 31, 2014, for Federal income tax purposes, the identified cost of investments owned, net unrealized appreciation (depreciation), gross unrealized appreciation, and gross unrealized depreciation of investments were as follows:
| Net Unrealized | ||||||||||||||||
| Gross Unrealized | Gross Unrealized | Appreciation | ||||||||||||||
| Fund | Cost of Investments | Appreciation | Depreciation | (Depreciation) | ||||||||||||
| Bank and Brokerage ETF | $15,057,096 | $1,575,656 | $(329,332 | ) | $1,246,324 | |||||||||||
| Biotech ETF | 551,362,866 | 59,941,895 | (9,888,645 | ) | 50,053,250 | |||||||||||
| Environmental Services ETF | 18,985,762 | 2,766,401 | (572,456 | ) | 2,193,945 | |||||||||||
| Gaming ETF | 68,353,945 | 22,202,023 | (2,936,743 | ) | 19,265,280 | |||||||||||
| Pharmaceutical ETF | 266,455,099 | 48,055,525 | (575,723 | ) | 47,479,802 | |||||||||||
| Retail ETF | 26,149,251 | 353,410 | (1,440,279 | ) | (1,086,869 | ) | ||||||||||
| Semiconductor ETF | 341,584,783 | 6,595,219 | (4,201,829 | ) | 2,393,390 | |||||||||||
| Wide Moat ETF | 613,348,410 | 31,873,028 | (4,131,763 | ) | 27,741,265 | |||||||||||
The tax character of dividends paid to shareholders during the period ended September 30, 2013 was as follows:
| Fund | Ordinary Income | ||
| Bank and Brokerage ETF | $ | 920,773 | |
| Biotech ETF | 486,956 | ||
| Environmental Services ETF | 315,200 | ||
| Gaming ETF | 2,349,400 | ||
| Pharmaceutical ETF | 8,761,804 | ||
| Retail ETF | 695,015 | ||
| Semiconductor ETF | 6,734,656 | ||
| Wide Moat ETF | 673,200 | ||
The tax character of current year distributions will be determined at the end of the current fiscal year.
On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the “Act”) was enacted, which changed various technical rules governing the tax treatment of regulated investment companies. The changes are generally effective for taxable years beginning after the date of enactment. One of the more prominent changes addresses capital loss carryforwards. Under the Act, each Fund will be permitted to carry forward capital losses incurred in taxable years beginning after the date of enactment for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years, which carry an expiration date. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital loss carryforwards will retain their character as either short-term or long-term capital losses rather than being considered all short-term as permitted under previous regulation.
At September 30, 2013, the Funds had capital loss carryforwards available to offset future capital gains, as follows:
| Post-Effective- | Post Effective– | |||||||||||||||||||
| No Expiration | No Expiration | Amount Expiring | ||||||||||||||||||
| Long-Term | Short-Term | in the Year Ended September 30, | ||||||||||||||||||
| Fund | Capital Losses | Capital Losses | 2018 | 2017 | 2016 | |||||||||||||||
| Environmental Services ETF | $ | 567,693 | $ | – | $ | 479,375 | $ | 6,445,705 | $ | 2,110,133 | ||||||||||
| Retail ETF | – | 1,846 | – | – | – | |||||||||||||||
The Funds recognize the tax benefits of uncertain tax positions only where the position is “more-likely-than-not” to be sustained assuming examination by applicable tax authorities. Management has analyzed the Funds’ tax positions, and has
| 44 |
concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on return filings for open tax years (tax years ended 2010-2012), or expected to be taken in the Funds’ current tax year. The Funds do not have exposure for additional years that might still be open in certain foreign jurisdictions. Therefore, no provision for income tax is required in the Funds’ financial statements.
The Funds recognize interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statements of Operations. During the period ended March 31, 2014, the Funds did not incur any interest or penalties.
Note 6—Capital Share Transactions—As of March 31, 2014, there were an unlimited number of capital shares of beneficial interest authorized by the Trust with no par value. Shares are issued and redeemed by the Funds only in Creation Units, consisting of at least 50,000 shares, or multiples thereof. The consideration for the purchase or redemption of Creation Units of the Funds generally consists of the in-kind contribution or distribution of securities constituting the Funds’ underlying index plus a small amount of cash. For the period ended March 31, 2014, the Funds had in-kind contributions and redemptions as follows:
| In-Kind | In-Kind | ||||||
| Fund | Contributions | Redemptions | |||||
| Bank and Brokerage ETF | $ | – | $ | 1,386,140 | |||
| Biotech ETF | 216,027,292 | 149,429,093 | |||||
| Environmental Services ETF | 2,538,984 | 1,968,158 | |||||
| Gaming ETF | 27,456,477 | 4,551,274 | |||||
| Pharmaceutical ETF | 51,865,093 | 47,213,756 | |||||
| Retail ETF | 41,811,379 | 64,699,697 | |||||
| Semiconductor ETF | 967,866,317 | 949,609,932 | |||||
| Wide Moat ETF | 717,541,932 | 433,624,231 | |||||
Note 7—Concentration of Risk—The investment objective of each Fund is to seek investment results that correspond generally to the price and yield performance, before fees and expenses, of its underlying index, as indicated in the name of each Fund. The Adviser uses a “passive” or index approach to achieve each Fund’s investment objective by investing in a portfolio of securities that generally replicates the Funds’ index. Each of the Funds is classified as a non-diversified fund under the 1940 Act. Non-diversified funds generally hold securities of fewer issuers than diversified funds and may be more susceptible to the risks associated with these particular issuers, or to a single economic, political or regulatory occurrence affecting these issuers. The Funds may purchase securities on foreign exchanges. Securities of foreign issuers involve special risks and considerations not typically associated with investing in U.S. issuers. These risks include devaluation of currencies, currency controls, less reliable information about issuers, different securities transaction clearance and settlement practices, future adverse political and economic developments and local/regional conflicts. These risks are heightened for investments in emerging market countries. Moreover, securities of many foreign issuers and their markets may be less liquid and their prices more volatile than those of comparable U.S. issuers.
Note 8—Trustee Deferred Compensation Plan—The Trust has a Deferred Compensation Plan (the “Plan”) for Trustees under which the Trustees can elect to defer receipt of their trustee fees until retirement, disability or termination from the Board of Trustees. The fees otherwise payable to the participating Trustees are deemed invested in shares of the Funds as directed by the Trustees.
The expense for the Plan is included in “Trustees’ fees and expenses” in the Statements of Operations. The liability for the Plan is shown as “Deferred Trustee fees” in the Statements of Assets and Liabilities.
Note 9—Securities Lending—To generate additional income, each of the Funds may lend its securities pursuant to a securities lending agreement with The Bank of New York Mellon, the securities lending agent and also the Funds’ custodian. Each Fund may lend up to 33% of its investments requiring that the loan be continuously collateralized by cash, U.S. government or U.S. government agency securities, shares of an investment trust or mutual fund, or any combination of cash and such securities at all times equal to at least 102% (105% for foreign securities) of the market value plus accrued interest on the securities loaned. During the term of the loan, the Funds will continue to receive any dividends or amounts equivalent thereto, on the securities loaned while receiving a fee from the borrower or earning interest on the investment of the cash collateral. The Funds may pay reasonable finders’, administrative and custodial fees in connection with a loan of its securities and shares the interest earned on the collateral and borrowing fees received with the securities lending agent. Securities lending income is disclosed as such in the Statements of Operations. The collateral for securities loaned is
| 45 |
MARKET VECTORS ETF TRUST
NOTES TO FINANCIAL STATEMENTS
March 31, 2014 (continued) (unaudited)
recognized in the Schedules of Investments and the Statements of Assets and Liabilities. The cash collateral is maintained on the Funds’ behalf by the lending agent and is invested in the Bank of New York Overnight Government Fund, the Bank of New York Institutional Cash Reserve, or repurchase agreements collateralized by obligations of the U.S. Treasury and/or Government Agencies. Loans are subject to termination at the option of the borrower or the Funds. Upon termination of the loan, the borrower will return to the lender securities identical to the securities loaned. The Funds bear the risk of delay in recovery of, or even loss of rights in, the securities loaned should the borrower of the securities fail financially. As of March 31, 2014, the loans outstanding and the collateral received are included in value of securities on loan and collateral for securities loaned, respectively, in the Statements of Assets and Liabilities.
Note 10—Share Split—On January 27, 2012, the Board of Trustees of the Market Vectors ETF Trust approved a split of the shares for Bank and Brokerage ETF, Biotech ETF, Pharmaceutical ETF, and Retail ETF. The share splits took place for shareholders of record as of the close of business on February 10, 2012, and were paid on February 13, 2012. Each Fund’s shares began trading on a split-adjusted basis on February 14, 2012. Biotech ETF and Retail ETF split its shares three-for-one. Bank and Brokerage ETF and Pharmaceutical ETF split its shares two-for-one.
Note 11—Bank Line of Credit—Certain Funds may participate in a $200 million committed credit facility (the “Facility”) to be utilized for temporary financing until the settlement of sales or purchases of portfolio securities, the repurchase or redemption of shares of the Funds at the request of the shareholders and other temporary or emergency purposes. The Funds have agreed to pay commitment fees, pro rata, based on the unused but available balance. Interest is charged to the Funds at rates based on prevailing market rates in effect at the time of borrowings. During the period ended March 31, 2014, the following Funds borrowed under this Facility:
| Outstanding Loan | |||||||||||||
| Days | Average Daily | Average | Balance as of | ||||||||||
| Fund | Outstanding | Loan Balance | Interest Rate | March 31, 2014 | |||||||||
| Bank and Brokerage ETF | 1 | $ | 387,932 | 1.48 | % | $ | – | ||||||
| Biotech ETF | 90 | 1,379,580 | 1.54 | – | |||||||||
| Gaming ETF | 82 | 259,945 | 1.50 | 315,436 | |||||||||
| Pharmaceutical ETF | 164 | 800,861 | 1.54 | 758,015 | |||||||||
| Semiconductor ETF | 82 | 750,549 | 1.54 | – | |||||||||
| Wide Moat ETF | 138 | 850,723 | 1.54 | 1,817,736 | |||||||||
Note 12—Custodian Fees—The Funds have entered into an expense offset agreement with the custodian wherein they receive a credit toward the reduction of custodian fees whenever there are uninvested cash balances. The Funds could have invested their cash balances elsewhere if they had not agreed to a reduction in fees under the expense offset agreement with the custodian. For the period ended March 31, 2014, the Funds did not have any expense offsets to reduce custodian fees.
Note 13—Subsequent Events—The Funds have evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued.
The following dividends from net investment income were declared and paid subsequent to March 31, 2014:
| Fund | Ex-Date | Record Date | Payable Date | Per Share | |||
| Bank and Brokerage ETF | 4/1/14 | 4/3/14 | 4/7/14 | $0.3732 | |||
| Pharmaceutical ETF | 4/1/14 | 4/3/14 | 4/7/14 | $0.3982 |
| 46 |
This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by a Market Vectors ETF Trust (the “Trust”) Prospectus and Summary Prospectus, which includes more complete information. An investor should consider the investment objective, risks, and charges and expenses of the Funds carefully before investing. The prospectus and summary prospectus contains this and other information about the investment company. Please read the prospectus and summary prospectus carefully before investing.
Additional information about the Trust’s Board of Trustees/Officers and a description of the policies and procedures the Trust uses to determine how to vote proxies relating to portfolio securities are provided in the Statement of Additional Information. The Statement of Additional Information and information regarding how the Trust voted proxies relating to portfolio securities during the most recent twelve month period ending June 30 is available, without charge, by calling 1.888.MKT.VCTR, or by visiting marketvectorsetfs.com, or on the Securities and Exchange Commission’s website at http://www.sec.gov.
The Trust files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. The Trust’s Form N-Qs are available on the Commission’s website at http://www.sec.gov and may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1.202.942.8090. The Funds’ complete schedules of portfolio holdings are also available by calling 1.888.MKT.VCTR or by visiting marketvectorsetfs.com.
Investment Adviser:
Van Eck Associates Corporation
Distributor:
Van Eck Securities Corporation
335 Madison Avenue
New York, NY 10017
vaneck.com
Account Assistance:
1.888.MKT.VCTR
marketvectorsetfs.com
MVINDUSAR
 |
SEMI-ANNUAL REPORT M A R C H 3 1 , 2 0 1 4 |
| MARKET VECTORS INTERNATIONAL ETFs |
||
| MSCI Emerging Markets Quality ETF | QEMTM | |
| MSCI Emerging Markets Quality Dividend ETF | QDEMTM | |
| MSCI International Quality ETF | QXUSTM | |
| MSCI International Quality Dividend ETF | QDXUTM |
888.MKT.VCTR
marketvectorsetfs.com
The information contained in the management discussion represents the opinions of Market Vectors ETFs and may differ from other persons. This information is not intended to be a forecast of future events, a guarantee of future results or investment advice. The information contained herein regarding each index has been provided by the relevant index provider. Also, unless otherwise specifically noted, any discussion of the Funds’ holdings and the Funds’ performance, and the views of Market Vectors ETFs are as of March 31, 2014, and are subject to change.
MARKET VECTORS INTERNATIONAL ETFs
(unaudited)
On January 21 of this year we launched our family of four quality-based exchange-traded funds (ETFs), the latest additions to our suite of Market Vectors International ETFs.
Powered by indices from MSCI, our new ETFs introduce an approach that invests in financially strong–“quality”–companies. While we have offered country-specific and regional equity funds for years, we have not had a broad-based solution to international and emerging markets. For us, it has been about finding the right approach, one that is very pragmatic in its selection of country and security exposure and more realistically addresses the markets in a way a rational, prudent investor might.
However, in a time when international and emerging markets are volatile, it is more important than in past years for investors to be selective in how they approach these markets. Their long-term potential is too great to ignore. But that does not mean it has to be a case of all or nothing. MSCI’s methodology for defining quality screens companies that have historically provided high return on equity, strong earnings growth and maintained low debt.
Countless academic studies and articles have researched the factor of quality in investing and have identified it as a potential driver of outperformance of traditional market indexes. While there is, of course, no guarantee these companies can maintain their historical characteristics, these attributes may indicate a level of strength relative to others companies in the markets and offer a shrewd way to approach these markets.
Market Vectors MSCI International Quality ETF (QXUS) and Market Vectors MSCI Emerging Markets Quality ETF (QEM), benefit from the application of MSCI’s quality screens to broad international and emerging markets.
MSCI Emerging Markets Quality Index1 – Total Return since Inception
Source: MSCI. Not intended to be a forecast of future events, a guarantee of future results or investment advice. Current market conditions may not continue. Past performance is no guarantee of future results; current performance may be lower or higher than the performance data quoted. Index performance is not illustrative of fund performance. Investors cannot invest directly in an Index.
| 1 |
MARKET VECTORS INTERNATIONAL ETFs
But quality screens can also be applied for dividend-oriented strategies, as they are for Market Vectors MSCI International Quality Dividend ETF (QDXU) and Market Vectors MSCI Emerging Markets Quality Dividend ETF (QDEM). Constituents in the MSCI high dividend yield indices are quality growth companies that offer a higher dividend yield relative to their respective parent (broad market) indices and a track record of providing sustainable and consistent dividend payouts.
MSCI Emerging Markets High Dividend Yield Index2 – Total Return since Inception
Source: MSCI. Not intended to be a forecast of future events, a guarantee of future results or investment advice. Current market conditions may not continue. Past performance is no guarantee of future results; current performance may be lower or higher than the performance data quoted. Index performance is not illustrative of fund performance. Investors cannot invest directly in an Index.
These new funds are just the four latest additions to Market Vectors’ already robust group of international and emerging markets offerings. And Market Vectors continues to be an industry leader in offering both single-country and region-specific equity ETFs.
We will continue to look for further ways to enhance your access to the markets you choose and seek out the most attractive opportunities for you as a shareholder in the international space. Please stay in touch with us through our website (www.vaneck.com) on which we offer videos, email subscriptions, blogs and educational literature, all of which are designed to keep you up to date with your investment in Market Vectors ETFs.
| 2 |
On the following pages, you will find the performance record of each of the funds for the period ending March 31, 2014. You will also find their financial statements. We value your continuing confidence in us and look forward to helping you meet your investment goals in the future.
Jan F. van Eck
Trustee and President
Market Vectors ETF Trust
April 14, 2014
Represents the opinions of the investment adviser. Past performance is no guarantee of future results. Not intended to be a forecast of future events, a guarantee of future results or investment advice. Current market conditions may not continue.
All indices are unmanaged and include the reinvestment of all dividends, but do not reflect the payment of transaction costs, advisory fees or expenses that are associated with an investment in the Fund. An index’s performance is not illustrative of the Fund’s performance. Indices are not securities in which investments can be made. Results reflect past performance and do not guarantee future results.
| 1 | The MSCI Emerging Markets Quality Index aims to capture the performance of quality growth stocks selected from the Parent Index, MSCI Emerging Markets, by identifying stocks with high-quality scores based on three main fundamental variables: high return on equity, stable year-over-year earnings growth, and low financial leverage. | |
| 2 | The MSCI Emerging Markets High Dividend Yield Index is designed to reflect the performance of equities in the Parent Index (MSCI Emerging Markets) with dividend yields that are higher than the average dividend yield of the Parent Index that are deemed by MSCI (Index Provider) to be both sustainable and persistent. The Index also applies quality screens and reviews 12-month past performance to omit stocks with potentially deteriorating fundamentals that could force companies to cut or reduce dividends. |
| 3 |
MARKET VECTORS INTERNATIONAL ETFs
Management Discussion (unaudited)
Despite trading for just over two months, each of the four Market Vectors MSCI Quality ETFs realized positive performance for the period from inception, January 21, 2014, to March 31, 2014. While economic recovery in Europei continued through this period, the crisis in the Ukraine, and Russia’s involvement, also continued to cast a shadow.
South Africa was the single largest positive contributor to the Fund’s total return, while Russia was the single largest detractor from performance. On a sector basis, information technology companies made the greatest positive contribution and energy companies the greatest negative contribution.
MSCI Emerging Markets Quality Dividend
As with the Market Vectors MSCI Emerging Markets Quality ETF, South Africa was the single largest positive contributor to the Fund’s total return, while Russia was the single largest detractor from performance. Likewise, information technology companies made the greatest positive contribution and energy companies the greatest negative contribution.
Switzerland was the single largest positive contributor to the Fund’s total return, while once again Russia was the single largest performance detractor. On a sector basis, health care companies made the greatest positive contribution and consumer discretionary companies the greatest negative contribution.
MSCI International Quality Dividend
France was the single largest positive contributor to the Fund’s total return, while the U.K. was the single largest detractor from performance. On a sector basis, energy companies made the greatest positive contribution and telecommunication services companies the greatest negative contribution.
| i | The Economist: Taking Europe’s pulse, http://www.economist.com/blogs/graphicdetail/2014/03/european-economy-guide |
| 4 |
MSCI EMERGING MARKETS QUALITY ETF (QEM)
March 31, 2014 (unaudited)
| Total Return | Share Price1 | NAV | M1EFQU2 | |||
| Life* (cumulative) | 2.05% | 2.89% | 2.87% | |||
| * since 1/21/2014 |
Commencement date for the Market Vectors Emerging Markets Quality ETF was 1/21/14.
| 1 | The price used to calculate market return (Share Price) is determined by using the closing price listed on NYSE Arca. Since the shares of the Fund did not trade in the secondary market until several days after the Fund’s commencement, for the period from commencement (1/21/14) to the first day of secondary market trading in shares of the Fund (1/24/14), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. |
The performance data quoted represents past performance. Past performance is not a guarantee of future results.
Performance information for the Fund reflects temporary waivers of expenses and/or fees. Had the Fund incurred all expenses, investment returns would have been reduced. These returns do not reflect the deduction of taxes that a shareholder would pay on Fund dividends and distributions or the sale of Fund shares.
Investment return and value of the shares of the Fund will fluctuate so that an investor’s shares, when sold, may be worth more or less than their original cost. Performance may be lower or higher than performance data quoted. Performance current to the most recent month-end is available by calling 1.888.MKT.VCTR or by visiting marketvectorsetfs.com.
Gross Expense Ratio 3.89% / Net Expense Ratio 0.50%
Van Eck Associates Corporation (the “Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of the Fund (excluding acquired fund fees and expenses, interest expense, offering costs, trading expenses, taxes and extraordinary expenses) from exceeding 0.50% of the Fund’s average daily net assets per year until at least February 1, 2015. During such time, the expense limitation is expected to continue until the Fund’s Board of Trustees acts to discontinue all or a portion of such expense limitation.
Fund shares are not individually redeemable and will be issued and redeemed at their NAV only through certain authorized broker-dealers in large, specified blocks of shares called “creation units” and otherwise can be bought and sold only through exchange trading. Creation units are issued and redeemed principally in kind. Shares may trade at a premium or discount to their NAV in the secondary market.
The “Net Asset Value” (NAV) of a Market Vectors exchange-traded fund (ETF) is determined at the close of each business day, and represents the dollar value of one share of the fund; it is calculated by taking the total assets of the fund, subtracting total liabilities, and dividing by the total number of shares outstanding. The NAV is not necessarily the same as the ETF’s intraday trading value. Market Vectors ETF investors should not expect to buy or sell shares at NAV.
MSCI Emerging Markets Quality Index (the “Index”) is the exclusive property and a trademark of MSCI and has been licensed for use for certain purposes by Van Eck Associates Corporation for Market Vectors Emerging Markets Quality ETF (the “Fund”) based on the Index. The Fund is not sponsored, endorsed, sold or promoted by MSCI, and MSCI makes no representation regarding the advisability of trading in the Fund.
Index returns assume the reinvestment of all income and do not reflect any management fees or brokerage expenses associated with Fund returns. Investors cannot invest directly in the Index. Returns for actual Fund investors may differ from what is shown because of differences in timing, the amount invested and fees and expenses.
| 2 | MSCI Emerging Markets Quality Index (M1EFQU) is modified capitalization weighted and aims to capture the performance of quality growth stocks selected from the Parent Index (MSCI Emerging Markets Index), by identifying stocks with high quality scores based on three main fundamental variables: high return on equity, stable year-over-year earnings growth and low financial leverage. The Index reweights the selected quality growth stocks from the parent index to emphasize stocks with high quality scores. |
| 5 |
MSCI EMERGING MARKETS QUALITY DIVIDEND ETF (QDEM)
PERFORMANCE COMPARISON
March 31, 2014 (unaudited)
| Total Return | Share Price1 | NAV | M1EFDY2 | |||
| Life* (cumulative) | 1.84% | 2.12% | 2.35% | |||
| * since 1/21/2014 |
Commencement date for the Market Vectors Emerging Markets Quality Dividend ETF was 1/21/14.
| 1 | The price used to calculate market return (Share Price) is determined by using the closing price listed on NYSE Arca. Since the shares of the Fund did not trade in the secondary market until several days after the Fund’s commencement, for the period from commencement (1/21/14) to the first day of secondary market trading in shares of the Fund (1/24/14), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. |
The performance data quoted represents past performance. Past performance is not a guarantee of future results.
Performance information for the Fund reflects temporary waivers of expenses and/or fees. Had the Fund incurred all expenses, investment returns would have been reduced. These returns do not reflect the deduction of taxes that a shareholder would pay on Fund dividends and distributions or the sale of Fund shares.
Investment return and value of the shares of the Fund will fluctuate so that an investor’s shares, when sold, may be worth more or less than their original cost. Performance may be lower or higher than performance data quoted. Performance current to the most recent month-end is available by calling 1.888.MKT.VCTR or by visiting marketvectorsetfs.com.
Gross Expense Ratio 3.40% / Net Expense Ratio 0.50%
Van Eck Associates Corporation (the “Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of the Fund (excluding acquired fund fees and expenses, interest expense, offering costs, trading expenses, taxes and extraordinary expenses) from exceeding 0.50% of the Fund’s average daily net assets per year until at least February 1, 2015. During such time, the expense limitation is expected to continue until the Fund’s Board of Trustees acts to discontinue all or a portion of such expense limitation.
Fund shares are not individually redeemable and will be issued and redeemed at their NAV only through certain authorized broker-dealers in large, specified blocks of shares called “creation units” and otherwise can be bought and sold only through exchange trading. Creation units are issued and redeemed principally in kind. Shares may trade at a premium or discount to their NAV in the secondary market.
The “Net Asset Value” (NAV) of a Market Vectors exchange-traded fund (ETF) is determined at the close of each business day, and represents the dollar value of one share of the fund; it is calculated by taking the total assets of the fund, subtracting total liabilities, and dividing by the total number of shares outstanding. The NAV is not necessarily the same as the ETF’s intraday trading value. Market Vectors ETF investors should not expect to buy or sell shares at NAV.
MSCI Emerging Markets High Dividend Yield Index (the “Index”) is the exclusive property and a trademark of MSCI and has been licensed for use for certain purposes by Van Eck Associates Corporation for Market Vectors Emerging Markets Quality Dividend ETF (the “Fund”) based on the Index. The Fund is not sponsored, endorsed, sold or promoted by MSCI, and MSCI makes no representation regarding the advisability of trading in the Fund.
Index returns assume the reinvestment of all income and do not reflect any management fees or brokerage expenses associated with Fund returns. Investors cannot invest directly in the Index. Returns for actual Fund investors may differ from what is shown because of differences in timing, the amount invested and fees and expenses.
| 2 | MSCI Emerging Markets High Dividend Yield Index (M1EFDY) is modified capitalization weighted and is designed to reflect the performance of equities in the Parent Index (MSCI Emerging Markets Index) with dividend yields that are higher than average dividend yield of the Parent Index that are deemed by the Index Provider to be both sustainable and persistent. |
| 6 |
MSCI INTERNATIONAL QUALITY ETF (QXUS)
PERFORMANCE COMPARISON
March 31, 2014 (unaudited)
| Total Return | Share Price1 | NAV | M1WDUQU2 | |||
| Life* (cumulative) | 2.23% | 2.49% | 2.57% | |||
| * since 1/21/2014 |
Commencement date for the Market Vectors International Quality ETF was 1/21/14.
| 1 | The price used to calculate market return (Share Price) is determined by using the closing price listed on NYSE Arca. Since the shares of the Fund did not trade in the secondary market until several days after the Fund’s commencement, for the period from commencement (1/21/14) to the first day of secondary market trading in shares of the Fund (1/24/14), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. |
The performance data quoted represents past performance. Past performance is not a guarantee of future results.
Performance information for the Fund reflects temporary waivers of expenses and/or fees. Had the Fund incurred all expenses, investment returns would have been reduced. These returns do not reflect the deduction of taxes that a shareholder would pay on Fund dividends and distributions or the sale of Fund shares.
Investment return and value of the shares of the Fund will fluctuate so that an investor’s shares, when sold, may be worth more or less than their original cost. Performance may be lower or higher than performance data quoted. Performance current to the most recent month-end is available by calling 1.888.MKT.VCTR or by visiting marketvectorsetfs.com.
Gross Expense Ratio 2.15% / Net Expense Ratio 0.45%
Van Eck Associates Corporation (the “Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of the Fund (excluding acquired fund fees and expenses, interest expense, offering costs, trading expenses, taxes and extraordinary expenses) from exceeding 0.45% of the Fund’s average daily net assets per year until at least February 1, 2015. During such time, the expense limitation is expected to continue until the Fund’s Board of Trustees acts to discontinue all or a portion of such expense limitation.
Fund shares are not individually redeemable and will be issued and redeemed at their NAV only through certain authorized broker-dealers in large, specified blocks of shares called “creation units” and otherwise can be bought and sold only through exchange trading. Creation units are issued and redeemed principally in kind. Shares may trade at a premium or discount to their NAV in the secondary market.
The “Net Asset Value” (NAV) of a Market Vectors exchange-traded fund (ETF) is determined at the close of each business day, and represents the dollar value of one share of the fund; it is calculated by taking the total assets of the fund, subtracting total liabilities, and dividing by the total number of shares outstanding. The NAV is not necessarily the same as the ETF’s intraday trading value. Market Vectors ETF investors should not expect to buy or sell shares at NAV.
MSCI ACWI ex USA Quality Index (the “Index”) is the exclusive property and a trademark of MSCI and has been licensed for use for certain purposes by Van Eck Associates Corporation for Market Vectors International Quality ETF (the “Fund”) based on the Index. The Fund is not sponsored, endorsed, sold or promoted by MSCI, and MSCI makes no representation regarding the advisability of trading in the Fund.
Index returns assume the reinvestment of all income and do not reflect any management fees or brokerage expenses associated with Fund returns. Investors cannot invest directly in the Index. Returns for actual Fund investors may differ from what is shown because of differences in timing, the amount invested and fees and expenses.
| 2 | MSCI ACWI ex USA Quality Index (M1WDUQU) is modified capitalization and aims to capture the performance of quality growth stocks selected from the Parent Index (MSCI ASWI ex USA Quality Index) by identifying stocks with high quality scores based on three main fundamental variables: high return on equity, stable year-over-year earnings growth and low financial leverage. The Index reweights the selected quality growth stocks from the parent index to emphasize stocks with high quality scores. |
| 7 |
MSCI INTERNATIONAL QUALITY DIVIDEND ETF (QDXU)
PERFORMANCE COMPARISON
March 31, 2014 (unaudited)
| Total Return | Share Price1 | NAV | M1WDUDY2 | |||
| Life* (cumulative) | 1.61% | 1.87% | 2.43% | |||
| * since 1/21/2014 |
Commencement date for the Market Vectors International Quality Dividend ETF was 1/21/14.
| 1 | The price used to calculate market return (Share Price) is determined by using the closing price listed on NYSE Arca. Since the shares of the Fund did not trade in the secondary market until several days after the Fund’s commencement, for the period from commencement (1/21/14) to the first day of secondary market trading in shares of the Fund (1/24/14), the NAV of the Fund is used as a proxy for the secondary market trading price to calculate market returns. |
The performance data quoted represents past performance. Past performance is not a guarantee of future results.
Performance information for the Fund reflects temporary waivers of expenses and/or fees. Had the Fund incurred all expenses, investment returns would have been reduced. These returns do not reflect the deduction of taxes that a shareholder would pay on Fund dividends and distributions or the sale of Fund shares.
Investment return and value of the shares of the Fund will fluctuate so that an investor’s shares, when sold, may be worth more or less than their original cost. Performance may be lower or higher than performance data quoted. Performance current to the most recent month-end is available by calling 1.888.MKT.VCTR or by visiting marketvectorsetfs.com.
Gross Expense Ratio 3.22% / Net Expense Ratio 0.45%
Van Eck Associates Corporation (the “Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of the Fund (excluding acquired fund fees and expenses, interest expense, offering costs, trading expenses, taxes and extraordinary expenses) from exceeding 0.45% of the Fund’s average daily net assets per year until at least February 1, 2015. During such time, the expense limitation is expected to continue until the Fund’s Board of Trustees acts to discontinue all or a portion of such expense limitation.
Fund shares are not individually redeemable and will be issued and redeemed at their NAV only through certain authorized broker-dealers in large, specified blocks of shares called “creation units” and otherwise can be bought and sold only through exchange trading. Creation units are issued and redeemed principally in kind. Shares may trade at a premium or discount to their NAV in the secondary market.
The “Net Asset Value” (NAV) of a Market Vectors exchange-traded fund (ETF) is determined at the close of each business day, and represents the dollar value of one share of the fund; it is calculated by taking the total assets of the fund, subtracting total liabilities, and dividing by the total number of shares outstanding. The NAV is not necessarily the same as the ETF’s intraday trading value. Market Vectors ETF investors should not expect to buy or sell shares at NAV.
MSCI ACWI ex USA High Dividend Yield Index (the “Index”) is the exclusive property and a trademark of MSCI and has been licensed for use for certain purposes by Van Eck Associates Corporation for Market Vectors International Quality Dividend ETF (the “Fund”) based on the Index. The Fund is not sponsored, endorsed, sold or promoted by MSCI, and MSCI makes no representation regarding the advisability of trading in the Fund.
Index returns assume the reinvestment of all income and do not reflect any management fees or brokerage expenses associated with Fund returns. Investors cannot invest directly in the Index. Returns for actual Fund investors may differ from what is shown because of differences in timing, the amount invested and fees and expenses.
| 2 | MSCI ACWI ex USA High Dividend Yield Index (M1WDUDY) is modified capitalization and is designed to reflect the performance of equities in the Parent Index (MSCI ACWI ex USA Index) with dividend yields that are higher than average dividend yield of the Parent Index that are deemed by the Index Provider to be both sustainable and persistent. |
| 8 |
MARKET VECTORS ETF TRUST
(unaudited)
Hypothetical $1,000 investment at beginning of period
As a shareholder of a Fund, you incur operating expenses, including management fees and other Fund expenses. This disclosure is intended to help you understand the ongoing costs (in dollars) of investing in your Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The disclosure is based on an investment of $1,000 invested at the beginning of the period and held for the period, October 1, 2013 to March 31, 2014, assuming the Funds commenced operations on October 1, 2013.
Actual Expenses
The first line in the table below provides information about account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During the Period.”
Hypothetical Example for Comparison Purposes
The second line in the table below provides information about hypothetical account values and hypothetical expenses based on your Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as program fees. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Beginning Account Value October 1, 2013 | Ending Account Value March 31, 2014 | Annualized Expense Ratio During Period | Expenses Paid During the Period* October 1, 2013- March 31, 2014 |
||||||||||||||
| MSCI Emerging Markets Quality ETF | |||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,028.90 | 0.50 | % | $ | 2.53 | |||||||||
| Hypothetical** | $ | 1,000.00 | $ | 1,022.44 | 0.50 | % | $ | 2.52 | |||||||||
| MSCI Emerging Markets Quality Dividend ETF | |||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,021.20 | 0.50 | % | $ | 2.52 | |||||||||
| Hypothetical** | $ | 1,000.00 | $ | 1,022.44 | 0.50 | % | $ | 2.52 | |||||||||
| MSCI International Quality ETF | |||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,024.90 | 0.45 | % | $ | 2.27 | |||||||||
| Hypothetical** | $ | 1,000.00 | $ | 1,022.69 | 0.45 | % | $ | 2.27 | |||||||||
| MSCI International Quality Dividend ETF | |||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,018.70 | 0.45 | % | $ | 2.26 | |||||||||
| Hypothetical** | $ | 1,000.00 | $ | 1,022.69 | 0.45 | % | $ | 2.27 | |||||||||
| * | Expenses are equal to the Fund’s annualized expense ratio (for the six months ended March 31, 2014) multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half year divided by the number of days in the fiscal year (to reflect the one-half year period). |
| ** | Assumes annual return of 5% before expenses |
| 9 |
| MSCI EMERGING MARKETS QUALITY ETF |
| SCHEDULE OF INVESTMENTS |
| March 31, 2014 (unaudited) |
| Number of Shares |
Value | ||||||
| COMMON STOCKS: 87.5% | |||||||
| Brazil: 6.9% | |||||||
| 24,950 | AMBEV SA | $ | 187,415 | ||||
| 2,700 | BB Seguridade Participacoes SA | 30,045 | |||||
| 750 | Cia Hering SA | 9,100 | |||||
| 1,800 | Cielo SA | 57,681 | |||||
| 500 | Lojas Renner SA | 14,230 | |||||
| 150 | M Dias Branco SA | 6,076 | |||||
| 750 | Natura Cosmeticos SA | 12,670 | |||||
| 2,100 | Souza Cruz SA | 19,171 | |||||
| 500 | Totvs SA | 7,888 | |||||
| 750 | Tractebel Energia SA | 11,666 | |||||
| 355,942 | |||||||
| Chile: 0.2% | |||||||
| 557 | Cia Cervecerias Unidas SA | 6,220 | |||||
| 442 | ENTEL Chile SA | 5,391 | |||||
| 11,611 | |||||||
| China / Hong Kong: 19.5% | |||||||
| 3,000 | ANTA Sports Products Ltd. # | 5,008 | |||||
| 19,000 | Belle International Holdings Ltd. # | 18,993 | |||||
| 1,000 | Biostime International Holdings Ltd. # | 6,870 | |||||
| 6,000 | China BlueChemical Ltd. # | 3,095 | |||||
| 24,500 | China Mobile Ltd. # | 224,929 | |||||
| 13,500 | China Shenhua Energy Co. Ltd. # | 39,087 | |||||
| 71,000 | CNOOC Ltd. # | 107,488 | |||||
| 10,000 | Dongfeng Motor Group Co. Ltd. # | 14,183 | |||||
| 20,000 | Geely Automobile Holdings Ltd. # | 7,885 | |||||
| 5,000 | Great Wall Motor Co. Ltd. # | 25,188 | |||||
| 10,000 | Guangdong Investment Ltd. # | 9,561 | |||||
| 5,000 | Haier Electronics Group Co. Ltd. # | 13,570 | |||||
| 2,000 | Haitian International Holdings Ltd. # | 4,014 | |||||
| 44,000 | Hanergy Solar Group Ltd. * # | 6,933 | |||||
| 3,000 | Hengan International Group Co. Ltd. # | 31,142 | |||||
| 4,700 | Inner Mongolia Yitai Coal Co. (USD) # | 5,668 | |||||
| 26,000 | Lenovo Group Ltd. # | 28,757 | |||||
| 2,000 | Shenzhou International Group Holdings Ltd. # | 6,358 | |||||
| 8,000 | Sihuan Pharmaceutical Holdings Group Ltd. # | 9,664 | |||||
| 12,000 | Sino Biopharmaceutical Ltd. # | 10,243 | |||||
| 4,500 | Sinopec Engineering Group Co. Ltd. # | 4,880 | |||||
| 9,500 | Sun Art Retail Group Ltd. # | 11,962 | |||||
| 4,800 | Tencent Holdings Ltd. # | 335,017 | |||||
| 2,000 | Tsingtao Brewery Co. Ltd. # | 14,670 | |||||
| 32,000 | Want Want China Holdings Ltd. # | 47,873 | |||||
| 2,000 | Wumart Stores, Inc. # | 1,957 | |||||
| 1,100 | Yantai Changyu Pioneer Wine Co. Ltd. # | 2,679 | |||||
| 2,000 | Zhuzhou CSR Times Electric Co. Ltd. # | 6,752 | |||||
| 24,000 | Zijin Mining Group Ltd. # | 5,094 | |||||
| 1,009,520 | |||||||
| Colombia: 0.9% | |||||||
| 22,255 | Ecopetrol SA | 45,564 | |||||
| Egypt: 0.4% | |||||||
| 3,791 | Commercial International Bank Egypt SAE # | 19,408 | |||||
| Greece: 0.4% | |||||||
| 120 | Folli Follie SA * | 4,432 | |||||
| 1,130 | OPAP SA # | 18,151 | |||||
| 22,583 | |||||||
| Number of Shares |
Value | ||||||
| Indonesia: 7.2% | |||||||
| 1,800 | Astra Agro Lestari Tbk PT # | $ | 4,136 | ||||
| 81,400 | Astra International Tbk PT # | 53,244 | |||||
| 55,100 | Bank Central Asia Tbk PT # | 51,750 | |||||
| 38,500 | Bank Mandiri Persero Tbk PT # | 32,427 | |||||
| 28,000 | Bank Negara Indonesia Persero Tbk PT # | 12,337 | |||||
| 54,800 | Bank Rakyat Indonesia Tbk PT # | 46,590 | |||||
| 31,300 | Bumi Serpong Damai PT # | 4,551 | |||||
| 26,000 | Charoen Pokphand Indonesia Tbk PT # | 9,212 | |||||
| 1,700 | Gudang Garam Tbk PT # | 7,442 | |||||
| 2,000 | Indo Tambangraya Megah Tbk PT # | 4,312 | |||||
| 7,000 | Indocement Tunggal Prakarsa Tbk PT # | 14,494 | |||||
| 4,400 | Indofood Cbp Sukses Makmur Tbk PT # | 3,925 | |||||
| 111,900 | Kalbe Farma Tbk PT # | 14,515 | |||||
| 19,500 | Media Nusantara Citra Tbk PT # | 4,558 | |||||
| 14,900 | Semen Gresik Persero Tbk PT # | 20,945 | |||||
| 25,400 | Surya Citra Media Tbk PT # | 7,184 | |||||
| 4,500 | Tambang Batubara Bukit Asam Tbk PT # | 3,716 | |||||
| 209,300 | Telekomunikasi Indonesia Persero Tbk PT # | 40,912 | |||||
| 8,700 | Unilever Indonesia Tbk PT # | 22,574 | |||||
| 6,500 | United Tractors Tbk PT # | 11,942 | |||||
| 370,766 | |||||||
| Malaysia: 1.7% | |||||||
| 3,400 | Berjaya Sports Toto Bhd # | 4,132 | |||||
| 650 | British American Tobacco Malaysia Bhd | 11,768 | |||||
| 9,300 | Maxis Bhd # | 19,830 | |||||
| 11,500 | Petronas Chemicals Group Bhd # | 24,356 | |||||
| 1,000 | Petronas Dagangan Bhd # | 9,408 | |||||
| 2,400 | Petronas Gas Bhd # | 17,505 | |||||
| 86,999 | |||||||
| Mexico: 6.1% | |||||||
| 161,650 | America Movil, SAB de CV | 161,294 | |||||
| 4,400 | Compartamos, SAB de CV | 8,052 | |||||
| 3,200 | Genomma Lab Internacional, SA de CV * | 8,237 | |||||
| 2,000 | Grupo Carso, SAB de CV | 10,499 | |||||
| 13,850 | Grupo Mexico, SAB de CV | 43,730 | |||||
| 515 | Industrias Penoles, SA de CV | 13,423 | |||||
| 7,200 | Kimberly-Clark de Mexico, SAB de CV | 19,229 | |||||
| 21,950 | Wal-Mart de Mexico, SAB de CV | 52,315 | |||||
| 316,779 | |||||||
| Philippines: 0.5% | |||||||
| 3,110 | Bank of the Philippine Islands # | 5,963 | |||||
| 3,020 | DMCI Holdings, Inc. # | 4,715 | |||||
| 1,560 | Jollibee Foods Corp. # | 5,956 | |||||
| 175 | Philippine Long Distance Telephone Co. # | 10,653 | |||||
| 27,287 | |||||||
| Poland: 1.2% | |||||||
| 368 | Eurocash SA # | 4,868 | |||||
| 515 | KGHM Polska Miedz SA # | 18,586 | |||||
| 254 | Powszechny Zaklad Ubezpieczen SA # | 36,123 | |||||
| 2,001 | Synthos SA # | 3,234 | |||||
| 62,811 | |||||||
See Notes to Financial Statements
| 10 |
| Number of Shares |
Value | ||||||
| Russia: 6.5% | |||||||
| 43,254 | Gazprom OAO (USD) * # | $ | 166,825 | ||||
| 1,152 | Magnit OAO (GDR) # Reg S | 63,080 | |||||
| 448 | MegaFon OAO (GDR) # Reg S | 12,628 | |||||
| 2,017 | Mobile TeleSystems OJSC (ADR) | 35,277 | |||||
| 376 | Novatek OAO (GDR) # Reg S | 41,426 | |||||
| 25,319 | Surgutneftegas OAO (USD) # | 18,654 | |||||
| 337,890 | |||||||
| South Africa: 12.7% | |||||||
| 154 | Assore Ltd. # | 5,974 | |||||
| 1,106 | Bidvest Group Ltd. # | 29,250 | |||||
| 1,080 | Discovery Ltd. # | 8,660 | |||||
| 13,476 | FirstRand Ltd. # | 46,250 | |||||
| 804 | Foschini Group Ltd. # | 8,177 | |||||
| 730 | Imperial Holdings Ltd. # | 13,069 | |||||
| 428 | Kumba Iron Ore Ltd. # | 15,351 | |||||
| 4,814 | Life Healthcare Group Holdings Ltd. # | 17,606 | |||||
| 601 | Massmart Holdings Ltd. # | 7,839 | |||||
| 1,394 | Mr. Price Group Ltd. # | 20,855 | |||||
| 7,021 | MTN Group Ltd. # | 143,837 | |||||
| 887 | Pick n Pay Stores Ltd. # | 4,349 | |||||
| 825 | Reunert Ltd. # | 5,059 | |||||
| 2,891 | RMB Holdings Ltd. # | 13,170 | |||||
| 2,770 | RMI Holdings # | 7,569 | |||||
| 7,221 | Sanlam Ltd. # | 39,482 | |||||
| 2,403 | Sasol Ltd. # | 134,518 | |||||
| 1,915 | Shoprite Holdings Ltd. # | 28,926 | |||||
| 1,030 | Spar Group Ltd. # | 11,893 | |||||
| 733 | Tiger Brands Ltd. # | 18,957 | |||||
| 2,621 | Truworths International Ltd. # | 19,221 | |||||
| 1,979 | Vodacom Group Ltd. # | 24,445 | |||||
| 4,431 | Woolworths Holdings Ltd. # | 30,865 | |||||
| 655,322 | |||||||
| South Korea: 8.3% | |||||||
| 11 | Amorepacific Corp. # | 13,022 | |||||
| 350 | Cheil Worldwide, Inc. * # | 7,896 | |||||
| 164 | Dongbu Insurance Co. Ltd. # | 8,510 | |||||
| 160 | Halla Visteon Climate Control Corp. # | 7,329 | |||||
| 56 | Hyundai Glovis Co. Ltd. # | 12,735 | |||||
| 220 | Hyundai Marine & Fire Insurance Co. Ltd. # | 6,357 | |||||
| 274 | Hyundai Mobis Co. Ltd. # | 81,295 | |||||
| 61 | Hyundai Wia Corp. # | 9,832 | |||||
| 360 | Kangwon Land, Inc. # | 10,502 | |||||
| 30 | Korea Zinc Co. Ltd. # | 9,380 | |||||
| 427 | KT&G Corp. # | 32,160 | |||||
| 39 | LG Household & Health Care Ltd. # | 16,860 | |||||
| 167 | Samsung Electronics Co. Ltd. # | 211,117 | |||||
| 426,995 | |||||||
| Taiwan: 11.0% | |||||||
| 1,000 | Advantech Co. Ltd. # | 6,496 | |||||
| 3,000 | Asustek Computer, Inc. # | 29,727 | |||||
| 2,000 | Chicony Electronics Co. Ltd. # | 5,196 | |||||
| 2,000 | CTCI Corp. # | 3,003 | |||||
| 8,000 | Delta Electronics, Inc. # | 49,546 | |||||
| 1,000 | Eclat Textile Co. Ltd. # | 11,594 | |||||
| 7,000 | Far EasTone Telecommunications Co. Ltd. # | 14,818 | |||||
| 3,000 | Foxconn Technology Co. Ltd. # | 7,089 | |||||
| 1,000 | Giant Manufacturing Co. Ltd. # | 6,816 | |||||
| 1,000 | Largan Precision Co. Ltd. # | 47,533 | |||||
| Number of Shares |
Value | ||||||
| Taiwan: (continued) | |||||||
| 1,000 | Merida Industry Co. Ltd. # | $ | 6,650 | ||||
| 2,000 | Novatek Microelectronics Corp. Ltd. # | 9,193 | |||||
| 1,000 | Phison Electronics Corp. # | 6,450 | |||||
| 3,000 | President Chain Store Corp. # | 21,165 | |||||
| 2,000 | Radiant Opto-Electronics Corp. # | 8,099 | |||||
| 2,000 | Ruentex Industries Ltd. # | 4,789 | |||||
| 1,000 | ScinoPharm Taiwan Ltd. # | 2,679 | |||||
| 1,000 | Simplo Technology Co. Ltd. # | 4,770 | |||||
| 1,000 | Standard Foods Corp. # | 2,731 | |||||
| 8,000 | Taiwan Mobile Co. Ltd. # | 25,123 | |||||
| 72,000 | Taiwan Semiconductor Manufacturing Co. Ltd. # | 283,287 | |||||
| 1,000 | TPK Holding Co. Ltd. # | 5,948 | |||||
| 1,000 | Transcend Information, Inc. # | 3,256 | |||||
| 565,958 | |||||||
| Thailand: 2.3% | |||||||
| 5,600 | Advanced Info Service PCL (NVDR) # | 39,110 | |||||
| 1,100 | Bangkok Dusit Medical Services PCL (NVDR) # | 4,519 | |||||
| 5,800 | BEC World PCL (NVDR) # | 9,763 | |||||
| 26,100 | CP ALL PCL (NVDR) # | 35,039 | |||||
| 12,600 | Home Product Center PCL (NVDR) # | 3,792 | |||||
| 5,000 | PTT Exploration & Production PCL (NVDR) # | 24,207 | |||||
| 116,430 | |||||||
| Turkey: 1.3% | |||||||
| 1,231 | BIM Birlesik Magazalar AS # | 27,735 | |||||
| 362 | Ford Otomotiv Sanayi AS # | 3,693 | |||||
| 261 | Koza Altin Isletmeleri AS # | 2,255 | |||||
| 538 | Tupras-Turkiye Petrol Rafinerileri AS # | 11,384 | |||||
| 2,278 | Turk Telekomunikasyon AS # | 6,325 | |||||
| 2,841 | Turkcell Iletisim Hizmetleri AS * # | 15,918 | |||||
| 67,310 | |||||||
| United States: 0.4% | |||||||
| 723 | Southern Copper Corp. | 21,047 | |||||
| Total Common Stocks (Cost: $4,416,152) |
4,520,222 | ||||||
| PREFERRED STOCKS: 1.7% | |||||||
| Brazil: 0.5% | |||||||
| 550 | AES Tiete SA | 4,397 | |||||
| 3,100 | Cia Energetica de Minas Gerais | 20,951 | |||||
| 25,348 | |||||||
| Chile: 0.2% | |||||||
| 370 | Sociedad Quimica y Minera de Chile SA | 11,676 | |||||
| Russia: 0.4% | |||||||
| 24,563 | Surgutneftegas OJSC (USD) # | 17,802 | |||||
| South Korea: 0.6% | |||||||
| 31 | Samsung Electronics Co. Ltd. # | 30,881 | |||||
| Total Preferred Stocks (Cost: $78,794) |
85,707 | ||||||
| REAL ESTATE INVESTMENT TRUST: 0.2% (Cost: $7,853) |
|||||||
| Turkey: 0.2% | |||||||
| 8,030 | Emlak Konut Gayrimenkul Yatirim Ortakligi AS # | 9,457 | |||||
See Notes to Financial Statements
| 11 |
| MSCI EMERGING MARKETS QUALITY ETF |
| SCHEDULE OF INVESTMENTS |
| March 31, 2014 (unaudited) (continued) |
| Number of Shares |
Value | ||||||
| PARTICIPATORY NOTES: 10.7% | |||||||
| India: 0.3% | |||||||
| HSBC Bank PLC | |||||||
| 88 | ACC Ltd., 11/12/19 # * | $ | 2,064 | ||||
| 125 | Nestle India Ltd., 11/19/18 # * | 10,525 | |||||
| 490 | Oil India Ltd., 09/18/19 # * | 3,973 | |||||
| 16,562 | |||||||
| Luxembourg: 6.1% | |||||||
| Citigroup Global Markets Holdings, Inc. | |||||||
| 2,165 | Infosys Ltd., 02/27/15 # 144A * | 118,491 | |||||
| 12,387 | ITC Ltd., 02/27/15 # 144A * | 73,270 | |||||
| 2,929 | Oil & Natural Gas Corp. Ltd., 02/27/15 # 144A * | 15,672 | |||||
| 250 | Tech Mahindra Ltd., 02/27/15 # 144A * | 7,525 | |||||
| Merrill Lynch Intl & Co. | |||||||
| 2,753 | Tata Consultancy Services Ltd., 01/08/19 # * | 98,367 | |||||
| 313,325 | |||||||
| United Kingdom: 4.3% | |||||||
| HSBC Bank PLC | |||||||
| 2,515 | Ambuja Cements Ltd., 11/12/19 # * | 8,534 | |||||
| 1,472 | Asian Paints Ltd., 05/17/21 # * | 13,517 | |||||
| 463 | Bajaj Auto Ltd., 11/12/19 # * | 16,164 | |||||
| 2,513 | Bharat Heavy Electricals Ltd., 01/07/19 # 144A * | 8,262 | |||||
| Number of Shares |
Value | ||||||
| United Kingdom: (continued) | |||||||
| 1,400 | Cipla Ltd., 12/17/18 # * | $ | 8,977 | ||||
| 2,374 | Coal India Ltd., 11/02/20 # * | 11,472 | |||||
| 1,118 | Dabur India Ltd., 05/17/21 # * | 3,369 | |||||
| 187 | Divi’s Laboratories Ltd., 11/16/22 # * | 4,277 | |||||
| 57 | GlaxoSmithKline Consumer Healthcare Ltd., 07/06/22 # * |
4,106 | |||||
| 474 | Godrej Consumer Products Ltd., 05/16/22 # * | 6,822 | |||||
| 1,259 | HCL Technologies Ltd., 11/21/18 # * | 29,337 | |||||
| 460 | Hero MotoCorp Ltd., 07/29/19 # * | 17,543 | |||||
| 3,826 | Hindustan Unilever Ltd., 04/11/18 # Reg S 144A * |
38,812 | |||||
| 2,515 | Sun Pharmaceutical Industries Ltd., 10/24/18 # * | 24,247 | |||||
| 123 | Ultratech Cement Ltd., 11/19/20 # * | 4,511 | |||||
| 2,765 | Wipro Ltd., 11/12/19 # * | 25,343 | |||||
| 225,293 | |||||||
| Total Participatory Notes (Cost: $545,537) |
555,180 | ||||||
| Total Investments: 100.1% (Cost: $5,048,336) |
5,170,566 | ||||||
| Liabilities in excess of other assets: (0.1)% | (7,081 | ) | |||||
| NET ASSETS: 100.0% | $ | 5,163,485 | |||||
| ADR | American Depositary Receipt |
| GDR | Global Depositary Receipt |
| NVDR | Non-Voting Depositary Receipt |
| USD | United States Dollar |
| * | Non-income producing |
| # | Indicates a fair valued security which has not been valued utilizing an independent quote, but has been valued pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $4,331,122 which represents 82.7% of net assets. |
| Reg S | Security was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. |
| 144A | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended, or otherwise restricted. These securities may be resold in transactions exempt from registration, unless otherwise noted, and the value amounted to $262,032, or 5.1% of net assets. |
See Notes to Financial Statements
| 12 |
| Summary of Investments | ||||||||
| by Sector (unaudited) | % of Investments | Value | ||||||
| Basic Materials | 6.0 | % | $311,719 | |||||
| Communications | 22.1 | 1,144,908 | ||||||
| Consumer, Cyclical | 10.8 | 558,509 | ||||||
| Consumer, Discretionary | 0.7 | 33,707 | ||||||
| Consumer, Non-cyclical | 15.3 | 789,655 | ||||||
| Consumer, Staples | 2.6 | 136,904 | ||||||
| Diversified | 0.5 | 23,568 | ||||||
| Energy | 10.3 | 531,538 | ||||||
| Financial | 7.5 | 386,701 | ||||||
| Health Care | 0.7 | 37,501 | ||||||
| Industrial | 4.0 | 209,208 | ||||||
| Information Technology | 5.4 | 279,063 | ||||||
| Materials | 0.6 | 28,626 | ||||||
| Technology | 12.3 | 634,879 | ||||||
| Utilities | 1.2 | 64,080 | ||||||
| 100.0 | % | $5,170,566 | ||||||
The summary of inputs used to value the Fund’s investments as of March 31, 2014 is as follows:
| Level 2 | Level 3 | ||||||||||||||||||
| Level 1 | Significant | Significant | |||||||||||||||||
| Quoted | Observable | Unobservable | |||||||||||||||||
| Prices | Inputs | Inputs | Value | ||||||||||||||||
| Common Stocks | |||||||||||||||||||
| Brazil | $355,942 | $ | – | $ | – | $ | 355,942 | ||||||||||||
| Chile | 11,611 | – | – | 11,611 | |||||||||||||||
| China / Hong Kong | – | 1,009,520 | – | 1,009,520 | |||||||||||||||
| Colombia | 45,564 | – | – | 45,564 | |||||||||||||||
| Egypt | – | 19,408 | – | 19,408 | |||||||||||||||
| Greece | 4,432 | 18,151 | – | 22,583 | |||||||||||||||
| Indonesia | – | 370,766 | – | 370,766 | |||||||||||||||
| Malaysia | 11,768 | 75,231 | – | 86,999 | |||||||||||||||
| Mexico | 316,779 | – | – | 316,779 | |||||||||||||||
| Philippines | – | 27,287 | – | 27,287 | |||||||||||||||
| Poland | – | 62,811 | – | 62,811 | |||||||||||||||
| Russia | 35,277 | 302,613 | – | 337,890 | |||||||||||||||
| South Africa | – | 655,322 | – | 655,322 | |||||||||||||||
| South Korea | – | 426,995 | – | 426,995 | |||||||||||||||
| Taiwan | – | 565,958 | – | 565,958 | |||||||||||||||
| Thailand | – | 116,430 | – | 116,430 | |||||||||||||||
| Turkey | – | 67,310 | – | 67,310 | |||||||||||||||
| United States | 21,047 | – | – | 21,047 | |||||||||||||||
| Preferred Stocks | |||||||||||||||||||
| Brazil | 25,348 | – | – | 25,348 | |||||||||||||||
| Chile | 11,676 | – | – | 11,676 | |||||||||||||||
| Russia | – | 17,802 | – | 17,802 | |||||||||||||||
| South Korea | – | 30,881 | – | 30,881 | |||||||||||||||
| Real Estate Investment Trust | – | 9,457 | – | 9,457 | |||||||||||||||
| Participatory Notes* | – | 555,180 | – | 555,180 | |||||||||||||||
| Total | $839,444 | $ | 4,331,122 | $ | – | $ | 5,170,566 | ||||||||||||
| * | See Schedule of Investments for security type and geographic sector breakouts. |
See Notes to Financial Statements
| 13 |
MSCI EMERGING MARKETS QUALITY DIVIDEND ETF
SCHEDULE OF INVESTMENTS
March 31, 2014 (unaudited)
| Number of Shares |
Value | ||||||
| COMMON STOCKS: 94.0% | |||||||
| Brazil: 6.3% | |||||||
| 10,000 | BM&FBovespa SA | $ | 49,856 | ||||
| 4,700 | CCR SA | 36,284 | |||||
| 1,800 | Cia de Saneamento Basico do Estado de Sao Paulo | 16,831 | |||||
| 750 | Cia Hering SA | 9,100 | |||||
| 1,900 | Cielo SA | 60,886 | |||||
| 900 | EcoRodovias Infraestrutura e Logistica SA | 5,424 | |||||
| 1,250 | EDP - Energias do Brasil SA | 5,706 | |||||
| 1,800 | MRV Engenharia e Participacoes SA | 6,453 | |||||
| 900 | Natura Cosmeticos SA | 15,204 | |||||
| 600 | Porto Seguro SA | 8,469 | |||||
| 850 | Tractebel Energia SA | 13,222 | |||||
| 6,900 | Vale SA | 96,077 | |||||
| 323,512 | |||||||
| Chile: 0.5% | |||||||
| 12,341 | Aguas Andinas SA | 7,704 | |||||
| 123,674 | Banco de Chile | 15,540 | |||||
| 23,244 | |||||||
| China / Hong Kong: 30.8% | |||||||
| 8,000 | Agile Property Holdings Ltd. # | 6,573 | |||||
| 114,000 | Agricultural Bank of China Ltd. # | 49,832 | |||||
| 5,000 | ANTA Sports Products Ltd. # | 8,346 | |||||
| 400,000 | Bank of China Ltd. # | 177,697 | |||||
| 10,000 | China BlueChemical Ltd. # | 5,158 | |||||
| 22,000 | China Coal Energy Co. Ltd. # | 12,434 | |||||
| 12,000 | China Communications Services Corp. Ltd. # | 5,560 | |||||
| 347,000 | China Construction Bank Corp. # | 243,556 | |||||
| 27,500 | China Minsheng Banking Corp. Ltd. # | 27,641 | |||||
| 25,500 | China Mobile Ltd. # | 234,110 | |||||
| 136,000 | China Petroleum & Chemical Corp. # | 121,638 | |||||
| 18,000 | China Shenhua Energy Co. Ltd. # | 52,116 | |||||
| 95,000 | CNOOC Ltd. # | 143,822 | |||||
| 10,000 | COSCO Pacific Ltd. # | 12,798 | |||||
| 34,000 | Evergrande Real Estate Group Ltd. # | 16,088 | |||||
| 16,000 | Fushan International Energy Group Ltd. # | 4,874 | |||||
| 3,500 | Greentown China Holdings Ltd. # | 3,785 | |||||
| 14,000 | Guangdong Investment Ltd. # | 13,385 | |||||
| 4,800 | Guangzhou R&F Properties Co. Ltd. # | 6,948 | |||||
| 390,000 | Industrial & Commercial Bank of China Ltd. # | 240,410 | |||||
| 5,600 | Inner Mongolia Yitai Coal Co. (USD) # | 6,754 | |||||
| 6,000 | Jiangsu Expressway Co. Ltd. # | 6,840 | |||||
| 7,000 | Jiangxi Copper Co. Ltd. (Class H) # | 11,795 | |||||
| 112,000 | PetroChina Co. Ltd. (Class H) # | 121,649 | |||||
| 3,000 | Shanghai Industrial Holdings Ltd. # | 10,018 | |||||
| 17,500 | Sino-Ocean Land Holdings Ltd. # | 9,588 | |||||
| 9,500 | Soho China Ltd. # | 7,816 | |||||
| 1,200 | Yantai Changyu Pioneer Wine Co. Ltd. # | 2,923 | |||||
| 28,000 | Yuexiu Property Co. Ltd. # | 5,789 | |||||
| 7,200 | Zoomlion Heavy Industry Science and | ||||||
| Technology Co. Ltd. # | 5,027 | ||||||
| 1,574,970 | |||||||
| Colombia: 1.0% | |||||||
| 26,196 | Ecopetrol SA | 53,632 | |||||
| Czech Republic: 0.4% | |||||||
| 81 | Komercni Banka AS # | 19,377 | |||||
| Egypt: 0.5% | |||||||
| 4,544 | Commercial International Bank Egypt SAE # | 23,263 | |||||
| 1,814 | Telecom Egypt # | 4,406 | |||||
| 27,669 | |||||||
| Number of Shares |
Value | ||||||
| Indonesia: 1.2% | |||||||
| 76,400 | Adaro Energy Tbk PT # | $ | 6,647 | ||||
| 2,100 | Astra Agro Lestari Tbk PT # | 4,825 | |||||
| 2,100 | Indo Tambangraya Megah Tbk PT # | 4,528 | |||||
| 57,900 | Perusahaan Gas Negara Tbk PT # | 26,277 | |||||
| 4,300 | Tambang Batubara Bukit Asam Tbk PT # | 3,551 | |||||
| 8,900 | United Tractors Tbk PT # | 16,351 | |||||
| 62,179 | |||||||
| Malaysia: 5.0% | |||||||
| 5,800 | Alliance Financial Group Bhd # | 7,837 | |||||
| 13,600 | Axiata Group Bhd # | 27,801 | |||||
| 700 | British American Tobacco Malaysia Bhd | 12,673 | |||||
| 18,600 | DiGi.Com Bhd # | 30,727 | |||||
| 15,400 | IOI Corp. Bhd # | 22,623 | |||||
| 7,700 | IOI Properties Group Bhd * | 6,272 | |||||
| 2,600 | Kuala Lumpur Kepong Bhd # | 19,285 | |||||
| 2,000 | Lafarge Malaysia Bhd # | 5,539 | |||||
| 23,500 | Malayan Banking Bhd # | 69,752 | |||||
| 3,200 | Parkson Holdings Bhd # | 2,940 | |||||
| 5,600 | Public Bank Bhd # | 32,943 | |||||
| 5,700 | Telekom Malaysia Bhd # | 10,282 | |||||
| 2,800 | UMW Holdings Bhd # | 9,428 | |||||
| 258,102 | |||||||
| Mexico: 0.7% | |||||||
| 1,700 | Arca Continental, SAB de CV | 10,148 | |||||
| 9,700 | Grupo Financiero Santander Mexico, SAB de CV | 23,788 | |||||
| 33,936 | |||||||
| Philippines: 0.2% | |||||||
| 9,800 | Aboitiz Power Corp. # | 8,135 | |||||
| Poland: 4.4% | |||||||
| 173 | Bank Handlowy w Warszawie SA # | 6,517 | |||||
| 697 | Bank Pekao SA # | 45,408 | |||||
| 218 | Jastrzebska Spolka Weglowa SA # | 3,309 | |||||
| 743 | KGHM Polska Miedz SA # | 26,814 | |||||
| 4,646 | PKO Bank Polski SA # | 65,388 | |||||
| 3,971 | Polska Grupa Energetyczna SA # | 24,830 | |||||
| 298 | Powszechny Zaklad Ubezpieczen SA # | 42,380 | |||||
| 5,583 | Tauron Polska Energia SA # | 9,687 | |||||
| 224,333 | |||||||
| Russia: 11.0% | |||||||
| 58,291 | Gazprom OAO (USD) * # | 224,820 | |||||
| 2,710 | Lukoil OAO (USD) # | 151,234 | |||||
| 461 | MegaFon OAO (GDR) # Reg S | 12,995 | |||||
| 294 | MMC Norilsk Nickel OJSC (USD) # | 49,189 | |||||
| 2,743 | Mobile TeleSystems OJSC (ADR) | 47,975 | |||||
| 7,519 | Tatneft OAO (USD) # | 42,822 | |||||
| 7,015 | Uralkali OJSC (USD) # | 33,514 | |||||
| 562,549 | |||||||
| South Africa: 15.4% | |||||||
| 7,283 | African Bank Investments Ltd. # | 7,452 | |||||
| 1,800 | Barclays Africa Group Ltd. # | 25,517 | |||||
| 16,463 | FirstRand Ltd. # | 56,501 | |||||
| 1,016 | Foschini Group Ltd. # | 10,333 | |||||
| 1,003 | Imperial Holdings Ltd. # | 17,956 | |||||
| 428 | Kumba Iron Ore Ltd. # | 15,351 | |||||
| 5,834 | MMI Holdings Ltd. # | 13,659 | |||||
| 8,951 | MTN Group Ltd. # | 183,376 | |||||
| 3,150 | Nampak Ltd. # | 10,776 | |||||
See Notes to Financial Statements
| 14 |
| Number of Shares |
Value | ||||||
| South Africa: (continued) | |||||||
| 1,084 | Nedbank Group Ltd. # | $ | 23,064 | ||||
| 2,732 | PPC Ltd. # | 7,585 | |||||
| 962 | Reunert Ltd. # | 5,899 | |||||
| 3,748 | RMB Holdings Ltd. # | 17,074 | |||||
| 3,550 | RMI Holdings # | 9,701 | |||||
| 9,477 | Sanlam Ltd. # | 51,817 | |||||
| 2,932 | Sasol Ltd. # | 164,131 | |||||
| 919 | Spar Group Ltd. # | 10,611 | |||||
| 6,445 | Standard Bank Group Ltd. # | 84,993 | |||||
| 2,339 | Truworths International Ltd. # | 17,153 | |||||
| 1,975 | Vodacom Group Ltd. # | 24,396 | |||||
| 4,045 | Woolworths Holdings Ltd. # | 28,177 | |||||
| 785,522 | |||||||
| South Korea: 1.4% | |||||||
| 330 | Hyundai Marine & Fire Insurance Co. Ltd. # | 9,535 | |||||
| 350 | KT Corp. # | 9,743 | |||||
| 583 | KT&G Corp. # | 43,910 | |||||
| 51 | SK Telecom Co. Ltd. # | 10,350 | |||||
| 73,538 | |||||||
| Taiwan: 10.4% | |||||||
| 33,000 | Advanced Semiconductor Engineering, Inc. # | 36,622 | |||||
| 2,000 | Advantech Co. Ltd. # | 12,992 | |||||
| 11,000 | Asia Cement Corp. # | 13,746 | |||||
| 4,000 | Asustek Computer, Inc. # | 39,635 | |||||
| 2,000 | Cheng Uei Precision Industry Co. Ltd. # | 4,245 | |||||
| 3,000 | Chicony Electronics Co. Ltd. # | 7,794 | |||||
| 3,000 | China Motor Corp. # | 2,683 | |||||
| 20,000 | Chunghwa Telecom Co. Ltd. # | 61,543 | |||||
| 3,000 | CTCI Corp. # | 4,504 | |||||
| 10,000 | Delta Electronics, Inc. # | 61,932 | |||||
| 16,000 | Far Eastern New Century Corp. # | 17,030 | |||||
| 8,000 | Far EasTone Telecommunications Co. Ltd. # | 16,934 | |||||
| 2,000 | Farglory Land Development Co. Ltd. # | 3,412 | |||||
| 2,000 | Feng Hsin Iron & Steel Co. # | 3,366 | |||||
| 1,000 | Giant Manufacturing Co. Ltd. # | 6,816 | |||||
| 11,000 | Lite-On Technology Corp. # | 16,445 | |||||
| 3,000 | Novatek Microelectronics Corp. Ltd. # | 13,789 | |||||
| 1,000 | Phison Electronics Corp. # | 6,450 | |||||
| 11,000 | Pou Chen Corp. # | 15,567 | |||||
| 13,000 | Quanta Computer, Inc. # | 35,050 | |||||
| 2,000 | Radiant Opto-Electronics Corp. # | 8,098 | |||||
| 2,000 | Realtek Semiconductor Corp. # | 6,040 | |||||
| 3,000 | Ruentex Development Co. Ltd. # | 5,499 | |||||
| 3,000 | Ruentex Industries Ltd. # | 7,184 | |||||
| 1,000 | Simplo Technology Co. Ltd. # | 4,770 | |||||
| 7,000 | Synnex Technology International Corp. # | 11,282 | |||||
| 18,000 | Taiwan Cement Corp. # | 27,841 | |||||
| 4,000 | Taiwan Fertilizer Co. Ltd. # | 8,395 | |||||
| 9,000 | Taiwan Mobile Co. Ltd. # | 28,263 | |||||
| 10,000 | Teco Electric and Machinery Co. Ltd. # | 11,191 | |||||
| 1,000 | Transcend Information, Inc. # | 3,256 | |||||
| 3,000 | TSRC Corp. # | 4,489 | |||||
| 7,000 | Unimicron Technology Corp. # | 5,646 | |||||
| 12,000 | Wistron Corp. # | 9,888 | |||||
| 7,000 | WPG Holdings Ltd. # | 8,461 | |||||
| 530,858 | |||||||
| Number of Shares |
Value | ||||||
| Thailand: 4.2% | |||||||
| 5,500 | Advanced Info Service PCL (NVDR) # | $ | 38,412 | ||||
| 3,100 | Bangkok Bank PCL (NVDR) # | 17,090 | |||||
| 2,500 | Bangkok Bank PCL # | 13,857 | |||||
| 5,800 | Banpu PCL (NVDR) # | 5,005 | |||||
| 5,200 | BEC World PCL (NVDR) # | 8,753 | |||||
| 14,400 | Charoen Pokphand Foods (NVDR) # | 12,460 | |||||
| 2,700 | Glow Energy PCL (NVDR) # | 6,346 | |||||
| 18,600 | Krung Thai Bank PCL (NVDR) # | 10,753 | |||||
| 7,400 | PTT Exploration & Production PCL (NVDR) # | 35,827 | |||||
| 8,900 | PTT Global Chemical PCL (NVDR) # | 19,843 | |||||
| 4,500 | PTT PCL (NVDR) # | 41,478 | |||||
| 4,300 | Thai Oil PCL (NVDR) # | 7,039 | |||||
| 216,863 | |||||||
| Turkey: 0.6% | |||||||
| 373 | Ford Otomotiv Sanayi AS # | 3,805 | |||||
| 664 | Tofas Turk Otomobil Fabrikasi AS # | 3,772 | |||||
| 665 | Tupras-Turkiye Petrol Rafinerileri AS # | 14,071 | |||||
| 2,416 | Turk Telekomunikasyon AS # | 6,708 | |||||
| 28,356 | |||||||
| Total Common Stocks (Cost: $4,752,853) |
4,806,775 | ||||||
| PREFERRED STOCKS: 4.4% | |||||||
| Brazil: 3.8% | |||||||
| 950 | Banco do Estado do Rio Grande do Sul SA (Class A) | 5,524 | |||||
| 4,000 | Cia Energetica de Minas Gerais | 27,033 | |||||
| 1,600 | Telefonica Brasil SA | 34,056 | |||||
| 10,100 | Vale SA | 126,893 | |||||
| 193,506 | |||||||
| Russia: 0.5% | |||||||
| 36,803 | Surgutneftegas OJSC (USD) # | 26,673 | |||||
| South Korea: 0.1% | |||||||
| 41 | LG Chem Ltd. # | 5,726 | |||||
| Total Preferred Stocks (Cost: $214,861) |
225,905 | ||||||
| PARTICIPATORY NOTES: 1.4% | |||||||
| India: 0.1% | |||||||
| HSBC Bank PLC | |||||||
| 639 | Oil India Ltd., 09/18/19 # * | 5,181 | |||||
| United Kingdom: 1.3% | |||||||
| HSBC Bank PLC | |||||||
| 224 | Bank of Baroda, 05/16/22 # * | 2,710 | |||||
| 3,121 | Bharat Heavy Electricals Ltd., 01/07/19 # 144A * | 10,261 | |||||
| 2,538 | Cairn India Ltd., 08/27/19 # * | 14,172 | |||||
| 2,685 | Coal India Ltd., 11/02/20 # * | 12,975 | |||||
| 4,091 | Oil & Natural Gas Corp. Ltd., 11/12/19 # * | 21,889 | |||||
| 1,574 | Rural Electrification Corp. Ltd., 05/12/20 # * | 6,067 | |||||
| 68,074 | |||||||
| Total Participatory Notes (Cost: $64,484) |
73,255 | ||||||
| Total Investments: 99.8% (Cost: $5,032,198) |
5,105,935 | ||||||
| Other assets less liabilities: 0.2% | 7,761 | ||||||
| NET ASSETS: 100.0% | $ | 5,113,696 | |||||
See Notes to Financial Statements
| 15 |
MSCI EMERGING MARKETS QUALITY DIVIDEND ETF
SCHEDULE OF INVESTMENTS
March 31, 2014 (unaudited) (continued)
| ADR | American Depositary Receipt | |
| GDR | Global Depositary Receipt | |
| NVDR | Non-Voting Depositary Receipt | |
| USD | United States Dollar | |
| * | Non-income producing | |
| # | Indicates a fair valued security which has not been valued utilizing an independent quote, but has been valued pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $4,411,185 which represents 86.3% of net assets. | |
| Reg S | Security was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. | |
| 144A | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended, or otherwise restricted. These securities may be resold in transactions exempt from registration, unless otherwise noted, and the value amounted to $10,261, or 0.2% of net assets. |
| Summary of Investments by Sector (unaudited) |
% of Investments | Value | ||||||
| Basic Materials | 11.2 | % | $ | 570,741 | ||||
| Communications | 15.6 | 796,390 | ||||||
| Consumer, Cyclical | 2.9 | 148,787 | ||||||
| Consumer, Non-cyclical | 5.2 | 264,096 | ||||||
| Diversified | 0.3 | 17,956 | ||||||
| Energy | 22.3 | 1,138,140 | ||||||
| Financial | 31.3 | 1,599,554 | ||||||
| Industrial | 4.4 | 223,705 | ||||||
| Technology | 3.7 | 187,410 | ||||||
| Utilities | 3.1 | 159,156 | ||||||
| 100.0 | % | $ | 5,105,935 | |||||
The summary of inputs used to value the Fund’s investments as of March 31, 2014 is as follows:
| Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | ||||||||||||||
| Common Stocks | |||||||||||||||||
| Brazil | $ | 323,512 | $ | – | $ | – | $ | 323,512 | |||||||||
| Chile | 23,244 | – | – | 23,244 | |||||||||||||
| China / Hong Kong | – | 1,574,970 | – | 1,574,970 | |||||||||||||
| Colombia | 53,632 | – | – | 53,632 | |||||||||||||
| Czech Republic | – | 19,377 | – | 19,377 | |||||||||||||
| Egypt | – | 27,669 | – | 27,669 | |||||||||||||
| Indonesia | – | 62,179 | – | 62,179 | |||||||||||||
| Malaysia | 18,945 | 239,157 | – | 258,102 | |||||||||||||
| Mexico | 33,936 | – | – | 33,936 | |||||||||||||
| Philippines | – | 8,135 | – | 8,135 | |||||||||||||
| Poland | – | 224,333 | – | 224,333 | |||||||||||||
| Russia | 47,975 | 514,574 | – | 562,549 | |||||||||||||
| South Africa | – | 785,522 | – | 785,522 | |||||||||||||
| South Korea | – | 73,538 | – | 73,538 | |||||||||||||
| Taiwan | – | 530,858 | – | 530,858 | |||||||||||||
| Thailand | – | 216,863 | – | 216,863 | |||||||||||||
| Turkey | – | 28,356 | – | 28,356 | |||||||||||||
| Preferred Stocks | |||||||||||||||||
| Brazil | 193,506 | – | – | 193,506 | |||||||||||||
| Russia | – | 26,673 | – | 26,673 | |||||||||||||
| South Korea | – | 5,726 | – | 5,726 | |||||||||||||
| Participatory Notes* | – | 73,255 | – | 73,255 | |||||||||||||
| Total | $ | 694,750 | $ | 4,411,185 | $ | – | $ | 5,105,935 | |||||||||
* See Schedule of Investments for security type and geographic sector breakouts.
See Notes to Financial Statements
| 16 |
MSCI INTERNATIONAL QUALITY ETF
SCHEDULE OF INVESTMENTS
March 31, 2014 (unaudited)
| Number of Shares |
Value | ||||||
| COMMON STOCKS: 95.0% | |||||||
| Australia: 3.4% | |||||||
| 738 | ALS Ltd. # | $ | 5,036 | ||||
| 2,995 | Brambles Ltd. # | 25,754 | |||||
| 153 | Cochlear Ltd. # | 8,094 | |||||
| 1,334 | CSL Ltd. # | 86,114 | |||||
| 127 | Flight Centre Travel Group Ltd. # | 6,192 | |||||
| 238 | Ramsay Health Care Ltd. # | 10,629 | |||||
| 153 | REA Group Ltd. # | 6,929 | |||||
| 699 | Seek Ltd. # | 11,422 | |||||
| 9,747 | Telstra Corp. Ltd. # | 45,934 | |||||
| 1,297 | Woodside Petroleum Ltd. # | 46,936 | |||||
| 2,865 | Woolworths Ltd. # | 94,953 | |||||
| 375 | WorleyParsons Ltd. # | 5,278 | |||||
| 353,271 | |||||||
| Austria: 0.1% | |||||||
| 135 | Andritz AG # | 8,351 | |||||
| Belgium: 0.2% | |||||||
| 334 | Belgacom SA # | 10,470 | |||||
| 172 | Colruyt SA # | 9,486 | |||||
| 19,956 | |||||||
| Brazil: 1.9% | |||||||
| 13,050 | AMBEV SA | 98,027 | |||||
| 1,400 | BB Seguridade Participacoes SA | 15,579 | |||||
| 400 | CETIP SA - Balcao Organizado de Ativos e Derivativos | 4,875 | |||||
| 400 | Cia Hering SA | 4,854 | |||||
| 900 | Cielo SA | 28,841 | |||||
| 250 | Lojas Renner SA | 7,115 | |||||
| 50 | M Dias Branco SA | 2,025 | |||||
| 400 | Natura Cosmeticos SA | 6,757 | |||||
| 1,100 | Souza Cruz SA | 10,042 | |||||
| 250 | Totvs SA | 3,944 | |||||
| 400 | Tractebel Energia SA | 6,222 | |||||
| 400 | WEG SA | 5,619 | |||||
| 193,900 | |||||||
| Canada: 3.4% | |||||||
| 263 | Alimentation Couche Tard, Inc. | 21,304 | |||||
| 242 | Baytex Energy Corp. | 9,980 | |||||
| 1,770 | Canadian National Railway Co. | 99,601 | |||||
| 972 | Canadian Oil Sands Ltd. | 20,422 | |||||
| 339 | CI Financial Corp. | 10,710 | |||||
| 122 | Dollarama, Inc. | 9,309 | |||||
| 238 | Gildan Activewear, Inc. | 12,013 | |||||
| 198 | IGM Financial, Inc. | 9,353 | |||||
| 615 | Imperial Oil Ltd. | 28,684 | |||||
| 188 | Metro, Inc. | 11,054 | |||||
| 1,745 | Potash Corp of Saskatchewan, Inc. | 63,223 | |||||
| 246 | Saputo, Inc. | 12,412 | |||||
| 378 | Shoppers Drug Mart Corp. | 20,832 | |||||
| 393 | Tim Hortons, Inc. | 21,769 | |||||
| 350,666 | |||||||
| Chile: 0.1% | |||||||
| 293 | Cia Cervecerias Unidas SA | 3,272 | |||||
| 233 | ENTEL Chile SA | 2,842 | |||||
| 6,114 | |||||||
| Number of Shares |
Value |
||||||
| China / Hong Kong: 7.4% | |||||||
| 2,000 | ANTA Sports Products Ltd. # | $ | 3,338 | ||||
| 10,000 | Belle International Holdings Ltd. # | 9,996 | |||||
| 500 | Biostime International Holdings Ltd. # | 3,435 | |||||
| 1,000 | Cheung Kong Infrastructure Holdings Ltd. # | 6,395 | |||||
| 4,000 | China BlueChemical Ltd. # | 2,063 | |||||
| 4,000 | China Communications Services Corp. Ltd. # | 1,853 | |||||
| 13,000 | China Mobile Ltd. # | 119,350 | |||||
| 8,000 | China Overseas Land & Investment Ltd. # | 20,785 | |||||
| 7,000 | China Shenhua Energy Co. Ltd. # | 20,267 | |||||
| 37,000 | CNOOC Ltd. # | 56,015 | |||||
| 6,000 | Dongfeng Motor Group Co. Ltd. # | 8,510 | |||||
| 5,000 | Galaxy Entertainment Group Ltd. * # | 43,638 | |||||
| 10,000 | Geely Automobile Holdings Ltd. # | 3,942 | |||||
| 1,000 | Golden Eagle Retail Group Ltd. # | 1,383 | |||||
| 2,500 | Great Wall Motor Co. Ltd. # | 12,594 | |||||
| 1,500 | Greentown China Holdings Ltd. # | 1,622 | |||||
| 6,000 | Guangdong Investment Ltd. # | 5,736 | |||||
| 2,000 | Haier Electronics Group Co. Ltd. # | 5,428 | |||||
| 1,000 | Haitian International Holdings Ltd. # | 2,007 | |||||
| 22,000 | Hanergy Solar Group Ltd. * # | 3,467 | |||||
| 1,900 | Hang Seng Bank Ltd. # | 30,308 | |||||
| 1,500 | Hengan International Group Co. Ltd. # | 15,571 | |||||
| 2,500 | Hong Kong Exchanges and Clearing Ltd. # | 37,965 | |||||
| 2,500 | Inner Mongolia Yitai Coal Co. (USD) # | 3,015 | |||||
| 14,000 | Lenovo Group Ltd. # | 15,485 | |||||
| 6,000 | Sands China Ltd. # | 44,996 | |||||
| 1,000 | Shenzhou International Group Holdings Ltd. # | 3,179 | |||||
| 4,000 | Sihuan Pharmaceutical Holdings Group Ltd. # | 4,832 | |||||
| 8,000 | Sino Biopharmaceutical Ltd. # | 6,828 | |||||
| 2,500 | Sinopec Engineering Group Co. Ltd. # | 2,711 | |||||
| 7,000 | SJM Holdings Ltd. # | 19,719 | |||||
| 5,000 | Sun Art Retail Group Ltd. # | 6,296 | |||||
| 2,700 | Tencent Holdings Ltd. # | 188,447 | |||||
| 16,000 | Want Want China Holdings Ltd. # | 23,936 | |||||
| 1,000 | Wumart Stores, Inc. # | 979 | |||||
| 4,000 | Wynn Macau Ltd. # | 16,648 | |||||
| 4,000 | Yangzijiang Shipbuilding Holdings Ltd. (SGD) # | 3,443 | |||||
| 500 | Yantai Changyu Pioneer Wine Co. Ltd. # | 1,218 | |||||
| 1,000 | Zhuzhou CSR Times Electric Co. Ltd. # | 3,376 | |||||
| 12,000 | Zijin Mining Group Ltd. # | 2,547 | |||||
| 763,323 | |||||||
| Colombia: 0.2% | |||||||
| 11,681 | Ecopetrol SA | 23,915 | |||||
| Denmark: 3.2% | |||||||
| 322 | Coloplast AS # | 26,045 | |||||
| 5,974 | Novo Nordisk AS # | 272,128 | |||||
| 502 | Novozymes AS # | 22,077 | |||||
| 49 | Tryg AS # | 4,849 | |||||
| 57 | William Demant Holding AS * # | 4,873 | |||||
| 329,972 | |||||||
| Egypt: 0.1% | |||||||
| 1,988 | Commercial International Bank Egypt SAE # | 10,178 | |||||
See Notes to Financial Statements
| 17 |
MSCI INTERNATIONAL QUALITY ETF
SCHEDULE OF INVESTMENTS
March 31, 2014 (unaudited) (continued)
| Number of Shares |
Value | ||||||
| Finland: 0.8% | |||||||
| 300 | Elisa OYJ # | $ | 8,634 | ||||
| 933 | Kone OYJ # | 39,192 | |||||
| 226 | Nokian Renkaat OYJ # | 9,148 | |||||
| 287 | Orion OYJ # | 8,668 | |||||
| 376 | Wartsila OYJ Abp # | 20,447 | |||||
| 86,089 | |||||||
| France: 2.2% | |||||||
| 507 | Bureau Veritas SA # | 15,557 | |||||
| 122 | Dassault Systemes # | 14,282 | |||||
| 408 | Essilor International SA # | 41,193 | |||||
| 503 | Legrand SA # | 31,260 | |||||
| 480 | L’Oreal SA # | 79,225 | |||||
| 365 | Publicis Groupe SA # | 32,967 | |||||
| 61 | Societe BIC SA # | 8,016 | |||||
| 222,500 | |||||||
| Germany: 2.2% | |||||||
| 201 | Beiersdorf AG # | 19,613 | |||||
| 248 | Henkel AG & Co. KGaA # | 24,952 | |||||
| 84 | Hugo Boss AG # | 11,189 | |||||
| 1,954 | SAP AG # | 158,569 | |||||
| 225 | United Internet AG # | 10,559 | |||||
| 224,882 | |||||||
| Greece: 0.1% | |||||||
| 65 | Folli Follie SA * | 2,401 | |||||
| 591 | OPAP SA # | 9,493 | |||||
| 11,894 | |||||||
| Indonesia: 1.9% | |||||||
| 900 | Astra Agro Lestari Tbk PT # | 2,068 | |||||
| 43,400 | Astra International Tbk PT # | 28,388 | |||||
| 28,700 | Bank Central Asia Tbk PT # | 26,955 | |||||
| 20,200 | Bank Mandiri Persero Tbk PT # | 17,013 | |||||
| 14,700 | Bank Negara Indonesia Persero Tbk PT # | 6,477 | |||||
| 28,700 | Bank Rakyat Indonesia Tbk PT # | 24,400 | |||||
| 16,400 | Bumi Serpong Damai PT # | 2,385 | |||||
| 14,000 | Charoen Pokphand Indonesia Tbk PT # | 4,960 | |||||
| 900 | Gudang Garam Tbk PT # | 3,940 | |||||
| 1,000 | Indo Tambangraya Megah Tbk PT # | 2,156 | |||||
| 3,600 | Indocement Tunggal Prakarsa Tbk PT # | 7,454 | |||||
| 2,300 | Indofood Cbp Sukses Makmur Tbk PT # | 2,052 | |||||
| 58,100 | Kalbe Farma Tbk PT # | 7,536 | |||||
| 10,200 | Media Nusantara Citra Tbk PT # | 2,384 | |||||
| 7,800 | Semen Gresik Persero Tbk PT # | 10,965 | |||||
| 12,800 | Surya Citra Media Tbk PT # | 3,621 | |||||
| 2,300 | Tambang Batubara Bukit Asam Tbk PT # | 1,899 | |||||
| 109,900 | Telekomunikasi Indonesia Persero Tbk PT # | 21,482 | |||||
| 4,400 | Unilever Indonesia Tbk PT # | 11,417 | |||||
| 3,400 | United Tractors Tbk PT # | 6,247 | |||||
| 193,799 | |||||||
| Ireland: 0.9% | |||||||
| 1,069 | James Hardie Industries PLC (LDR) (AUD) # | 14,271 | |||||
| 304 | Kerry Group PLC | 23,216 | |||||
| 1,131 | Shire PLC (GBP) # | 55,991 | |||||
| 93,478 | |||||||
| Israel: 0.1% | |||||||
| 1,138 | Israel Chemicals Ltd. # | 9,948 | |||||
| Number of Shares |
Value |
||||||
| Japan: 2.4% | |||||||
| 200 | Daito Trust Construction Co. Ltd. # | $ | 18,567 | ||||
| 400 | Dena Co. Ltd. # | 7,242 | |||||
| 100 | Fast Retailing Co. Ltd. # | 36,250 | |||||
| 300 | Gree, Inc. # | 3,324 | |||||
| 100 | Hisamitsu Pharmaceutical Co., Inc. # | 4,523 | |||||
| 200 | Japan Airlines Co. Ltd. # | 9,865 | |||||
| 2,200 | Japan Tobacco, Inc. # | 69,207 | |||||
| 400 | JGC Corp. # | 13,927 | |||||
| 400 | Kakaku.com, Inc. # | 6,518 | |||||
| 400 | M3, Inc. # | 6,574 | |||||
| 150 | Nitori Holdings Co. Ltd. # | 6,524 | |||||
| 100 | Oracle Corp Japan # | 4,545 | |||||
| 200 | Park24 Co. Ltd. # | 3,809 | |||||
| 4,000 | Resona Holdings, Inc. # | 19,373 | |||||
| 200 | Sysmex Corp. # | 6,391 | |||||
| 200 | Trend Micro, Inc. # | 6,193 | |||||
| 100 | Tsumura & Co. # | 2,408 | |||||
| 500 | USS Co. Ltd. # | 7,040 | |||||
| 3,400 | Yahoo Japan Corp. # | 16,694 | |||||
| 248,974 | |||||||
| Luxembourg: 0.4% | |||||||
| 118 | Millicom International Cellular SA (LDR) (SEK) # | 11,998 | |||||
| 91 | RTL Group SA # | 10,369 | |||||
| 895 | Tenaris SA # | 19,786 | |||||
| 42,153 | |||||||
| Malaysia: 0.5% | |||||||
| 1,800 | Berjaya Sports Toto Bhd # | 2,188 | |||||
| 300 | British American Tobacco Malaysia Bhd | 5,431 | |||||
| 5,000 | Maxis Bhd # | 10,661 | |||||
| 5,900 | Petronas Chemicals Group Bhd # | 12,496 | |||||
| 500 | Petronas Dagangan Bhd # | 4,704 | |||||
| 1,300 | Petronas Gas Bhd # | 9,482 | |||||
| 1,000 | UMW Holdings Bhd # | 3,367 | |||||
| 48,329 | |||||||
| Mexico: 1.8% | |||||||
| 84,350 | America Movil, SAB de CV | 84,164 | |||||
| 2,350 | Compartamos, SAB de CV | 4,301 | |||||
| 350 | El Puerto de Liverpool, SAB de CV | 3,843 | |||||
| 423 | Fresnillo Plc (GBP) # | 5,963 | |||||
| 1,700 | Genomma Lab Internacional, SA de CV * | 4,376 | |||||
| 400 | Grupo Aeroportuario del Sureste, SAB de CV | 4,916 | |||||
| 1,050 | Grupo Carso, SAB de CV | 5,512 | |||||
| 7,350 | Grupo Mexico, SAB de CV | 23,207 | |||||
| 270 | Industrias Penoles, SA de CV | 7,037 | |||||
| 3,750 | Kimberly-Clark de Mexico, SAB de CV | 10,015 | |||||
| 550 | Promotora y Operadora de Infraestructura, SAB de CV * | 7,392 | |||||
| 11,350 | Wal-Mart de Mexico, SAB de CV | 27,051 | |||||
| 187,777 | |||||||
| Netherlands: 6.3% | |||||||
| 2,000 | Reed Elsevier NV # | 43,292 | |||||
| 7,013 | Royal Dutch Shell PLC - A Shares (GBP) # | 256,240 | |||||
| 4,412 | Royal Dutch Shell PLC - B Shares (GBP) # | 172,246 | |||||
| 4,378 | Unilever NV (LDR) # | 180,166 | |||||
| 651,944 | |||||||
See Notes to Financial Statements
| 18 |
| Number of Shares |
Value | ||||||
| New Zealand: 0.1% | |||||||
| 781 | Ryman Healthcare Ltd. # | $ | 5,937 | ||||
| Norway: 0.2% | |||||||
| 352 | Yara International ASA # | 15,593 | |||||
| Philippines: 0.3% | |||||||
| 3,810 | Aboitiz Equity Ventures, Inc. # | 4,764 | |||||
| 3,400 | Aboitiz Power Corp. # | 2,822 | |||||
| 1,630 | Bank of the Philippine Islands # | 3,125 | |||||
| 1,610 | DMCI Holdings, Inc. # | 2,513 | |||||
| 810 | Jollibee Foods Corp. # | 3,092 | |||||
| 95 | Philippine Long Distance Telephone Co. # | 5,783 | |||||
| 1,690 | Universal Robina Corp. # | 5,363 | |||||
| 27,462 | |||||||
| Poland: 0.3% | |||||||
| 199 | Eurocash SA # | 2,632 | |||||
| 269 | KGHM Polska Miedz SA # | 9,708 | |||||
| 132 | Powszechny Zaklad Ubezpieczen SA # | 18,772 | |||||
| 1,053 | Synthos SA # | 1,702 | |||||
| 32,814 | |||||||
| Portugal: 0.1% | |||||||
| 651 | Jeronimo Martins, SGPS SA # | 10,929 | |||||
| Russia: 2.3% | |||||||
| 22,489 | Gazprom OAO (USD) * # | 86,737 | |||||
| 988 | Lukoil OAO (USD) # | 55,136 | |||||
| 611 | Magnit OAO (GDR) Reg S | 33,456 | |||||
| 233 | MegaFon OAO (GDR) # Reg S | 6,568 | |||||
| 1,079 | Mobile TeleSystems OJSC (ADR) | 18,872 | |||||
| 198 | Novatek OAO (GDR) # Reg S | 21,815 | |||||
| 2,414 | Uralkali OJSC (USD) # | 11,533 | |||||
| 234,117 | |||||||
| Singapore: 1.1% | |||||||
| 3,000 | Keppel Corp. Ltd. # | 26,034 | |||||
| 2,000 | Sembcorp Industries Ltd. # | 8,751 | |||||
| 2,000 | Sembcorp Marine Ltd. # | 6,450 | |||||
| 3,000 | Singapore Exchange Ltd. # | 16,583 | |||||
| 4,000 | Singapore Technologies Engineering Ltd. # | 12,173 | |||||
| 15,000 | Singapore Telecommunications Ltd. # | 43,613 | |||||
| 113,604 | |||||||
| South Africa: 3.4% | |||||||
| 205 | African Rainbow Minerals Ltd. # | 4,059 | |||||
| 81 | Assore Ltd. # | 3,142 | |||||
| 583 | Bidvest Group Ltd. # | 15,419 | |||||
| 564 | Discovery Ltd. # | 4,522 | |||||
| 6,977 | FirstRand Ltd. # | 23,945 | |||||
| 427 | Foschini Group Ltd. # | 4,343 | |||||
| 387 | Imperial Holdings Ltd. # | 6,928 | |||||
| 218 | Kumba Iron Ore Ltd. # | 7,819 | |||||
| 2,467 | Life Healthcare Group Holdings Ltd. # | 9,023 | |||||
| 305 | Massmart Holdings Ltd. # | 3,978 | |||||
| 705 | Mr. Price Group Ltd. # | 10,547 | |||||
| 3,686 | MTN Group Ltd. # | 75,514 | |||||
| 479 | Pick n Pay Stores Ltd. # | 2,348 | |||||
| 428 | Reunert Ltd. # | 2,624 | |||||
| 1,498 | RMB Holdings Ltd. # | 6,824 | |||||
| 1,440 | RMI Holdings # | 3,935 | |||||
| 3,760 | Sanlam Ltd. # | 20,559 | |||||
| 1,251 | Sasol Ltd. # | 70,030 | |||||
| 1,002 | Shoprite Holdings Ltd. # | 15,135 | |||||
| 520 | Spar Group Ltd. # | 6,004 | |||||
| Number of Shares |
Value | ||||||
| South Africa: (continued) | |||||||
| 382 | Tiger Brands Ltd. # | $ | 9,879 | ||||
| 1,324 | Truworths International Ltd. # | 9,709 | |||||
| 1,013 | Vodacom Group Ltd. # | 12,513 | |||||
| 2,245 | Woolworths Holdings Ltd. # | 15,638 | |||||
| 344,437 | |||||||
| South Korea: 4.1% | |||||||
| 180 | Cheil Worldwide, Inc. * # | 4,061 | |||||
| 85 | Dongbu Insurance Co. Ltd. # | 4,411 | |||||
| 80 | Halla Visteon Climate Control Corp. # | 3,665 | |||||
| 30 | Hyundai Glovis Co. Ltd. # | 6,822 | |||||
| 120 | Hyundai Marine & Fire Insurance Co. Ltd. # | 3,467 | |||||
| 143 | Hyundai Mobis Co. Ltd. # | 42,428 | |||||
| 32 | Hyundai Wia Corp. # | 5,158 | |||||
| 180 | Kangwon Land, Inc. # | 5,251 | |||||
| 15 | Korea Zinc Co. Ltd. # | 4,690 | |||||
| 221 | KT&G Corp. # | 16,645 | |||||
| 21 | LG Household & Health Care Ltd. # | 9,079 | |||||
| 32 | S-1 Corp. # | 2,680 | |||||
| 238 | Samsung Electronics Co. Ltd. # | 300,873 | |||||
| 60 | Samsung SDI Co. Ltd. # | 9,111 | |||||
| 418,341 | |||||||
| Spain: 0.9% | |||||||
| 591 | Inditex SA # | 88,706 | |||||
| 494 | Zardoya Otis SA # | 8,423 | |||||
| 97,129 | |||||||
| Sweden: 3.1% | |||||||
| 687 | Alfa Laval AB # | 18,577 | |||||
| 661 | Assa Abloy AB # | 35,148 | |||||
| 1,041 | Atlas Copco AB # | 28,465 | |||||
| 1,792 | Atlas Copco AB # | 51,643 | |||||
| 771 | Elekta AB # | 10,246 | |||||
| 2,839 | Hennes & Mauritz AB # | 120,874 | |||||
| 756 | Skanska AB # | 17,791 | |||||
| 4,502 | TeliaSonera AB # | 33,942 | |||||
| 316,686 | |||||||
| Switzerland: 14.6% | |||||||
| 4,146 | ABB Ltd. # | 107,180 | |||||
| 224 | Actelion Ltd. # | 21,245 | |||||
| 1,086 | Cie Financiere Richemont SA # | 103,837 | |||||
| 19 | EMS-Chemie Holding AG # | 7,186 | |||||
| 98 | Geberit AG # | 32,138 | |||||
| 130 | Kuehne + Nagel International AG # | 18,207 | |||||
| 2 | Lindt & Spruengli AG | 9,921 | |||||
| 6,228 | Nestle SA # | 469,151 | |||||
| 51 | Partners Group Holding AG # | 14,337 | |||||
| 1,611 | Roche Holding AG # | 484,914 | |||||
| 101 | Schindler Holding AG - Participation Certificate # | 14,902 | |||||
| 47 | Schindler Holding AG - Registered Shares # | 6,909 | |||||
| 13 | SGS SA # | 32,087 | |||||
| 44 | Swisscom AG # | 27,054 | |||||
| 196 | Syngenta AG # | 74,466 | |||||
| 68 | The Swatch Group AG - Bearer Shares # | 42,692 | |||||
| 96 | The Swatch Group AG - Registered Shares # | 11,141 | |||||
| 504 | Wolseley PLC (GBP) # | 28,717 | |||||
| 1,506,084 | |||||||
See Notes to Financial Statements
| 19 |
MSCI INTERNATIONAL QUALITY ETF
SCHEDULE OF INVESTMENTS
March 31, 2014 (unaudited) (continued)
| Number of Shares |
Value |
||||||
| Taiwan: 3.4% | |||||||
| 1,000 | Advantech Co. Ltd. # | $ | 6,496 | ||||
| 1,000 | Asustek Computer, Inc. # | 9,909 | |||||
| 1,000 | Catcher Technology Co. Ltd. # | 7,261 | |||||
| 1,000 | Chicony Electronics Co. Ltd. # | 2,598 | |||||
| 1,000 | CTCI Corp. # | 1,501 | |||||
| 4,000 | Delta Electronics, Inc. # | 24,773 | |||||
| 3,000 | Far EasTone Telecommunications Co. Ltd. # | 6,350 | |||||
| 1,000 | Farglory Land Development Co. Ltd. # | 1,706 | |||||
| 2,000 | Foxconn Technology Co. Ltd. # | 4,726 | |||||
| 1,000 | Giant Manufacturing Co. Ltd. # | 6,816 | |||||
| 1,000 | Highwealth Construction Corp. # | 2,362 | |||||
| 1,000 | Merida Industry Co. Ltd. # | 6,650 | |||||
| 1,000 | Novatek Microelectronics Corp. Ltd. # | 4,596 | |||||
| 2,000 | President Chain Store Corp. # | 14,110 | |||||
| 1,000 | Radiant Opto-Electronics Corp. # | 4,049 | |||||
| 1,000 | Ruentex Development Co. Ltd. # | 1,833 | |||||
| 1,000 | Ruentex Industries Ltd. # | 2,395 | |||||
| 1,000 | Simplo Technology Co. Ltd. # | 4,770 | |||||
| 1,000 | Standard Foods Corp. # | 2,731 | |||||
| 4,000 | Taiwan Mobile Co. Ltd. # | 12,561 | |||||
| 57,000 | Taiwan Semiconductor Manufacturing Co. Ltd. # | 224,269 | |||||
| 352,462 | |||||||
| Thailand: 0.6% | |||||||
| 2,900 | Advanced Info Service PCL (NVDR) # | 20,253 | |||||
| 600 | Bangkok Dusit Medical Services PCL (NVDR) # | 2,465 | |||||
| 2,900 | BEC World PCL (NVDR) # | 4,881 | |||||
| 13,200 | CP ALL PCL (NVDR) # | 17,721 | |||||
| 6,600 | Home Product Center PCL (NVDR) # | 1,986 | |||||
| 2,600 | PTT Exploration & Production PCL (NVDR) # | 12,588 | |||||
| 59,894 | |||||||
| Turkey: 0.4% | |||||||
| 622 | BIM Birlesik Magazalar AS # | 14,014 | |||||
| 188 | Ford Otomotiv Sanayi AS # | 1,918 | |||||
| 135 | Koza Altin Isletmeleri AS # | 1,167 | |||||
| 242 | Tofas Turk Otomobil Fabrikasi AS # | 1,375 | |||||
| 289 | Tupras-Turkiye Petrol Rafinerileri AS # | 6,115 | |||||
| 1,174 | Turk Telekomunikasyon AS # | 3,260 | |||||
| 1,484 | Turkcell Iletisim Hizmetleri AS * # | 8,315 | |||||
| 36,164 | |||||||
| United Kingdom: 20.4% | |||||||
| 2,368 | Aberdeen Asset Management PLC # | 15,434 | |||||
| 581 | Admiral Group PLC # | 13,834 | |||||
| 584 | Aggreko PLC # | 14,630 | |||||
| 698 | AMEC PLC # | 13,073 | |||||
| 782 | Antofagasta PLC # | 10,910 | |||||
| 3,208 | AstraZeneca PLC # | 207,965 | |||||
| 832 | Babcock International Group PLC # | 18,684 | |||||
| 7,641 | BAE Systems PLC # | 53,082 | |||||
| 4,556 | British American Tobacco PLC # | 254,160 | |||||
| 1,865 | British Sky Broadcasting Group PLC | 28,387 | |||||
| 756 | Bunzl PLC # | 20,157 | |||||
| 1,206 | Burberry Group PLC # | 28,039 | |||||
| 1,496 | Capita PLC # | 27,354 | |||||
| 10,648 | Centrica PLC # | 58,579 | |||||
| 2,014 | Cobham PLC # | 10,055 | |||||
| Number of Shares |
Value |
||||||
| United Kingdom: 20.4% | |||||||
| 4,100 | Compass Group PLC # | $ | 62,602 | ||||
| 353 | Croda International PLC # | 15,012 | |||||
| 5,952 | Diageo PLC # | 184,864 | |||||
| 639 | Hargreaves Lansdown PLC # | 15,545 | |||||
| 1,102 | ICAP PLC # | 6,945 | |||||
| 763 | IMI PLC # | 18,567 | |||||
| 2,067 | Imperial Tobacco Group PLC # | 83,585 | |||||
| 387 | Intertek Group PLC # | 19,869 | |||||
| 9,099 | ITV PLC # | 29,071 | |||||
| 422 | Johnson Matthey PLC # | 23,041 | |||||
| 346 | London Stock Exchange Group PLC # | 11,373 | |||||
| 3,130 | Marks & Spencer Group PLC # | 23,562 | |||||
| 317 | Next PLC # | 34,886 | |||||
| 722 | Petrofac Ltd. # | 17,330 | |||||
| 1,730 | Reckitt Benckiser Group PLC # | 141,177 | |||||
| 3,510 | Reed Elsevier PLC # | 53,638 | |||||
| 2,297 | Rio Tinto PLC # | 128,099 | |||||
| 4,741 | Rolls-Royce Holdings PLC # | 84,870 | |||||
| 197 | Schroders PLC # | 8,544 | |||||
| 998 | Serco Group PLC | 7,005 | |||||
| 1,890 | Smith & Nephew PLC # | 28,705 | |||||
| 857 | Smiths Group PLC # | 18,209 | |||||
| 1,019 | Tate & Lyle PLC # | 11,349 | |||||
| 15,334 | Tesco PLC # | 75,629 | |||||
| 2,596 | The Sage Group PLC # | 18,107 | |||||
| 416 | The Weir Group PLC # | 17,595 | |||||
| 977 | TUI Travel PLC # | 7,139 | |||||
| 3,369 | Unilever PLC # | 144,091 | |||||
| 370 | Whitbread PLC # | 25,682 | |||||
| 1,941 | William Hill PLC # | 11,043 | |||||
| 2,101,477 | |||||||
| United States: 0.1% | |||||||
| 388 | Southern Copper Corp. | 11,295 | |||||
| Total Common Stocks (Cost: $9,627,468) |
9,765,838 | ||||||
| PREFERRED STOCKS: 1.1% | |||||||
| Brazil: 0.1% | |||||||
| 300 | AES Tiete SA | 2,398 | |||||
| 1,700 | Cia Energetica de Minas Gerais | 11,489 | |||||
| 13,887 | |||||||
| Chile: 0.1% | |||||||
| 197 | Sociedad Quimica y Minera de Chile SA | 6,217 | |||||
| Germany: 0.5% | |||||||
| 91 | Fuchs Petrolub AG # | 9,147 | |||||
| 341 | Henkel AG & Co. KGaA # | 36,722 | |||||
| 45,869 | |||||||
| South Korea: 0.4% | |||||||
| 44 | Samsung Electronics Co. Ltd. # | 43,832 | |||||
| Total Preferred Stocks (Cost: $104,872) |
109,805 | ||||||
| REAL ESTATE INVESTMENT TRUST: 0.0% (Cost: $4,121) |
|||||||
| Turkey: 0.0% | |||||||
| 4,214 | Emlak Konut Gayrimenkul Yatirim Ortakligi AS # | 4,963 | |||||
See Notes to Financial Statements
| 20 |
| Number of Shares |
Value | ||||||
| PARTICIPATORY NOTES: 2.9% | |||||||
| India: 0.0% | |||||||
| HSBC Bank PLC | |||||||
| 46 | ACC Ltd., 11/12/19 # * | $ | 1,079 | ||||
| 32 | Nestle India Ltd., 11/19/18 # * | 2,694 | |||||
| 256 | Oil India Ltd., 09/18/19 # * | 2,075 | |||||
| 5,848 | |||||||
| Luxembourg: 0.1% | |||||||
| Citigroup Global Markets Holdings, Inc. | |||||||
| 258 | Tech Mahindra Ltd., 02/27/15 # 144A * | 7,766 | |||||
| United Kingdom: 2.8% | |||||||
| HSBC Bank PLC | |||||||
| 1,302 | Ambuja Cements Ltd., 11/12/19 # * | 4,418 | |||||
| 774 | Asian Paints Ltd., 05/17/21 # * | 7,108 | |||||
| 236 | Bajaj Auto Ltd., 11/12/19 # * | 8,239 | |||||
| 1,314 | Bharat Heavy Electricals Ltd., 01/07/19 # 144A * | 4,320 | |||||
| 338 | Bharat Petroleum Corp. Ltd., 11/12/19 # * | 2,610 | |||||
| 896 | Cairn India Ltd., 08/27/19 # * | 5,003 | |||||
| 732 | Cipla Ltd., 12/17/18 # * | 4,693 | |||||
| 1,260 | Coal India Ltd., 11/02/20 # * | 6,089 | |||||
| 580 | Dabur India Ltd., 05/17/21 # * | 1,748 | |||||
| 98 | Divi’s Laboratories Ltd., 11/16/22 # * | 2,242 | |||||
| 562 | GAIL India Ltd., 11/12/19 # * | 3,542 | |||||
| 30 | GlaxoSmithKline Consumer Healthcare Ltd., 07/06/22 # * |
2,161 | |||||
| 254 | Godrej Consumer Products Ltd., 05/16/22 # * | 3,656 | |||||
| Number of Shares |
Value | ||||||
| United Kingdom: (continued) | |||||||
| 564 | HCL Technologies Ltd., 11/21/18 # * | $ | 13,142 | ||||
| 234 | Hero MotoCorp Ltd., 07/29/19 # * | 8,924 | |||||
| 1,942 | Hindustan Unilever Ltd., 04/11/18 # Reg S 144A * | 19,700 | |||||
| 1,128 | Infosys Ltd., 11/25/19 # * | 61,736 | |||||
| 6,490 | ITC Ltd., 02/18/18 # Reg S 144A * | 38,389 | |||||
| 1,526 | Oil & Natural Gas Corp. Ltd., 11/12/19 # * | 8,165 | |||||
| 1,310 | Sun Pharmaceutical Industries Ltd., 10/24/18 # * | 12,630 | |||||
| 1,414 | Tata Consultancy Services Ltd., 11/25/19 # * | 50,523 | |||||
| 66 | Ultratech Cement Ltd., 11/19/20 # * | 2,420 | |||||
| 1,452 | Wipro Ltd., 11/12/19 # * | 13,309 | |||||
| 284,767 | |||||||
| Total Participatory Notes (Cost: $291,763) |
298,381 | ||||||
| MONEY MARKET FUND: 0.2% (Cost: $17,244) |
|||||||
| 17,244 | Dreyfus Government Cash Management Fund | 17,244 | |||||
| Total Investments: 99.2% (Cost: $10,045,468) |
10,196,231 | ||||||
| Other assets less liabilities: 0.8% | 84,423 | ||||||
| NET ASSETS: 100.0% | $ | 10,280,654 | |||||
| ADR | American Depositary Receipt | |
| AUD | Australian Dollar | |
| GBP | British Pound | |
| GDR | Global Depositary Receipt | |
| LDR | Local Depositary Receipt | |
| NVDR | Non-Voting Depositary Receipt | |
| SEK | Swedish Krona | |
| SGD | Singapore Dollar | |
| USD | United States Dollar | |
| * | Non-income producing | |
| # | Indicates a fair valued security which has not been valued utilizing an independent quote, but has been valued pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $9,262,490 which represents 90.1% of net assets. | |
| Reg S | Security was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. | |
| 144A | Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended, or otherwise restricted. These securities may be resold in transactions exempt from registration, unless otherwise noted, and the value amounted to $70,175, or 0.7% of net assets. |
See Notes to Financial Statements
| 21 |
MSCI INTERNATIONAL QUALITY ETF
SCHEDULE OF INVESTMENTS
March 31, 2014 (unaudited) (continued)
| Summary of Investments by Sector (unaudited) | % of Investments | Value | |||||||
| Basic Materials | 5.4 | % | $ | 554,230 | |||||
| Communications | 10.5 | 1,070,741 | |||||||
| Consumer, Cyclical | 11.7 | 1,187,850 | |||||||
| Consumer, Discretionary | 0.2 | 17,163 | |||||||
| Consumer, Non-cyclical | 37.5 | 3,826,936 | |||||||
| Consumer, Staples | 0.7 | 68,348 | |||||||
| Diversified | 0.4 | 43,238 | |||||||
| Energy | 8.8 | 895,073 | |||||||
| Financial | 4.7 | 475,643 | |||||||
| Health Care | 0.2 | 19,565 | |||||||
| Industrial | 9.2 | 940,107 | |||||||
| Information Technology | 1.4 | 146,476 | |||||||
| Materials | 0.1 | 15,025 | |||||||
| Technology | 8.0 | 818,322 | |||||||
| Utilities | 1.0 | 100,270 | |||||||
| Money Market Fund | 0.2 | 17,244 | |||||||
| 100.0 | % | $ | 10,196,231 | ||||||
The summary of inputs used to value the Fund’s investments as of March 31, 2014 is as follows:
| Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level
3 Significant Unobservable Inputs | Value | |||||||||||||||
| Common Stocks | ||||||||||||||||||
| Australia | $ | – | $ | 353,271 | $ | – | $ | 353,271 | ||||||||||
| Austria | – | 8,351 | – | 8,351 | ||||||||||||||
| Belgium | – | 19,956 | – | 19,956 | ||||||||||||||
| Brazil | 193,900 | – | – | 193,900 | ||||||||||||||
| Canada | 350,666 | – | – | 350,666 | ||||||||||||||
| Chile | 6,114 | – | – | 6,114 | ||||||||||||||
| China / Hong Kong | – | 763,323 | – | 763,323 | ||||||||||||||
| Colombia | 23,915 | – | – | 23,915 | ||||||||||||||
| Denmark | – | 329,972 | – | 329,972 | ||||||||||||||
| Egypt | – | 10,178 | – | 10,178 | ||||||||||||||
| Finland | – | 86,089 | – | 86,089 | ||||||||||||||
| France | – | 222,500 | – | 222,500 | ||||||||||||||
| Germany | – | 224,882 | – | 224,882 | ||||||||||||||
| Greece | 2,401 | 9,493 | – | 11,894 | ||||||||||||||
| Indonesia | – | 193,799 | – | 193,799 | ||||||||||||||
| Ireland | 23,216 | 70,262 | – | 93,478 | ||||||||||||||
| Israel | – | 9,948 | – | 9,948 | ||||||||||||||
| Japan | – | 248,974 | – | 248,974 | ||||||||||||||
| Luxembourg | – | 42,153 | – | 42,153 | ||||||||||||||
| Malaysia | 5,431 | 42,898 | – | 48,329 | ||||||||||||||
| Mexico | 181,814 | 5,963 | – | 187,777 | ||||||||||||||
| Netherlands | – | 651,944 | – | 651,944 | ||||||||||||||
| New Zealand | – | 5,937 | – | 5,937 | ||||||||||||||
| Norway | – | 15,593 | – | 15,593 | ||||||||||||||
| Philippines | – | 27,462 | – | 27,462 | ||||||||||||||
| Poland | – | 32,814 | – | 32,814 | ||||||||||||||
| Portugal | – | 10,929 | – | 10,929 | ||||||||||||||
| Russia | 52,328 | 181,789 | – | 234,117 | ||||||||||||||
| Singapore | – | 113,604 | – | 113,604 | ||||||||||||||
| South Africa | – | 344,437 | – | 344,437 | ||||||||||||||
| South Korea | – | 418,341 | – | 418,341 | ||||||||||||||
| Spain | – | 97,129 | – | 97,129 | ||||||||||||||
| Sweden | – | 316,686 | – | 316,686 | ||||||||||||||
| Switzerland | 9,921 | 1,496,163 | – | 1,506,084 | ||||||||||||||
| Taiwan | – | 352,462 | – | 352,462 | ||||||||||||||
| Thailand | – | 59,894 | – | 59,894 | ||||||||||||||
See Notes to Financial Statements
| 22 |
| Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level
3 Significant Unobservable Inputs | Value | ||||||||||||||||
| Turkey | $ | – | $ | 36,164 | $ | – | $ | 36,164 | |||||||||||
| United Kingdom | 35,392 | 2,066,085 | – | 2,101,477 | |||||||||||||||
| United States | 11,295 | – | – | 11,295 | |||||||||||||||
| Preferred Stocks | |||||||||||||||||||
| Brazil | 13,887 | – | – | 13,887 | |||||||||||||||
| Chile | 6,217 | – | – | 6,217 | |||||||||||||||
| Germany | – | 45,869 | – | 45,869 | |||||||||||||||
| South Korea | – | 43,832 | – | 43,832 | |||||||||||||||
| Real Estate Investment Trust | – | 4,963 | – | 4,963 | |||||||||||||||
| Participatory Notes* | – | 298,381 | – | 298,381 | |||||||||||||||
| Money Market Fund | 17,244 | – | – | 17,244 | |||||||||||||||
| Total | $ | 933,741 | $ | 9,262,490 | $ | – | $ | 10,196,231 | |||||||||||
* See Schedule of Investments for security type and geographic sector breakouts.
See Notes to Financial Statements
| 23 |
MSCI INTERNATIONAL QUALITY DIVIDEND ETF
SCHEDULE OF INVESTMENTS
March 31, 2014 (unaudited)
| Number | |||||||
| of Shares | Value | ||||||
| COMMON STOCKS: 98.9% | |||||||
| Australia: 6.0% | |||||||
| 404 | ALS Ltd. # | $ | 2,757 | ||||
| 1,268 | Amcor Ltd. # | 12,244 | |||||
| 203 | ASX Ltd. # | 6,798 | |||||
| 2,882 | Australia & New Zealand Banking Group Ltd. # | 88,606 | |||||
| 436 | Bendigo and Adelaide Bank Ltd. # | 4,603 | |||||
| 602 | Coca-Cola Amatil Ltd. # | 6,165 | |||||
| 60 | Cochlear Ltd. # | 3,174 | |||||
| 2,415 | Insurance Australia Group Ltd. # | 12,483 | |||||
| 177 | Leighton Holdings Ltd. # | 3,468 | |||||
| 576 | Lend Lease Group # | 6,340 | |||||
| 925 | Metcash Ltd. # | 2,242 | |||||
| 1,157 | Origin Energy Ltd. # | 15,358 | |||||
| 400 | Sonic Healthcare Ltd. # | 6,405 | |||||
| 1,352 | Suncorp Group Ltd. # | 16,170 | |||||
| 1,489 | Tatts Group Ltd. # | 4,007 | |||||
| 4,575 | Telstra Corp. Ltd. # | 21,560 | |||||
| 716 | Toll Holdings Ltd. # | 3,461 | |||||
| 1,201 | Wesfarmers Ltd. # | 45,990 | |||||
| 1,318 | Woolworths Ltd. # | 43,682 | |||||
| 217 | WorleyParsons Ltd. # | 3,054 | |||||
| 308,567 | |||||||
| Austria: 0.1% | |||||||
| 155 | OMV AG # | 7,039 | |||||
| Belgium: 0.1% | |||||||
| 160 | Belgacom SA # | 5,015 | |||||
| Brazil: 1.1% | |||||||
| 2,000 | BM&FBovespa SA | 9,971 | |||||
| 950 | CCR SA | 7,334 | |||||
| 150 | Cia Hering SA | 1,820 | |||||
| 350 | Cielo SA | 11,216 | |||||
| 200 | EcoRodovias Infraestrutura e Logistica SA | 1,205 | |||||
| 250 | EDP - Energias do Brasil SA | 1,141 | |||||
| 200 | Natura Cosmeticos SA | 3,379 | |||||
| 100 | Porto Seguro SA | 1,412 | |||||
| 150 | Tractebel Energia SA | 2,333 | |||||
| 1,350 | Vale SA | 18,798 | |||||
| 58,609 | |||||||
| Canada: 10.6% | |||||||
| 677 | Bank of Montreal | 45,364 | |||||
| 1,270 | Bank of Nova Scotia | 73,674 | |||||
| 131 | Baytex Energy Corp. | 5,403 | |||||
| 269 | BCE, Inc. | 11,606 | |||||
| 79 | Bell Aliant, Inc. | 1,935 | |||||
| 420 | Canadian Imperial Bank of Commerce | 36,245 | |||||
| 509 | Canadian Oil Sands Ltd. | 10,694 | |||||
| 164 | CI Financial Corp. | 5,181 | |||||
| 362 | Husky Energy, Inc. | 10,876 | |||||
| 106 | IGM Financial, Inc. | 5,007 | |||||
| 83 | Keyera Corp. | 5,271 | |||||
| 342 | National Bank of Canada | 13,727 | |||||
| 907 | Potash Corp of Saskatchewan, Inc. | 32,862 | |||||
| 367 | Power Corp of Canada | 10,048 | |||||
| 261 | Power Financial Corp. | 8,094 | |||||
| 381 | Rogers Communications, Inc. | 15,813 | |||||
| 1,514 | Royal Bank of Canada | 99,982 | |||||
| 409 | Shaw Communications, Inc. | 9,783 | |||||
| 223 | TELUS Corp. | 8,007 | |||||
| Number | |||||||
| of Shares | Value | ||||||
| Canada: (continued) | |||||||
| 1,937 | The Toronto-Dominion Bank | $ | 90,958 | ||||
| 743 | TransCanada Corp. | 33,826 | |||||
| 102 | Vermilion Energy, Inc. | 6,381 | |||||
| 540,737 | |||||||
| Chile: 0.2% | |||||||
| 2,442 | Aguas Andinas SA | 1,524 | |||||
| 24,472 | Banco de Chile | 3,075 | |||||
| 69,291 | Banco Santander Chile | 4,051 | |||||
| 8,650 | |||||||
| China / Hong Kong: 8.4% | |||||||
| 2,000 | Agile Property Holdings Ltd. # | 1,643 | |||||
| 23,000 | Agricultural Bank of China Ltd. # | 10,054 | |||||
| 1,000 | ANTA Sports Products Ltd. # | 1,669 | |||||
| 79,000 | Bank of China Ltd. # | 35,095 | |||||
| 4,000 | BOC Hong Kong Holdings Ltd. # | 11,421 | |||||
| 2,000 | China BlueChemical Ltd. # | 1,032 | |||||
| 9,000 | China CITIC Bank Corp. Ltd. # | 5,198 | |||||
| 4,000 | China Coal Energy Co. Ltd. # | 2,261 | |||||
| 5,000 | China Communications Construction Co. Ltd. # | 3,497 | |||||
| 2,000 | China Communications Services Corp. Ltd. # | 927 | |||||
| 76,000 | China Construction Bank Corp. # | 53,344 | |||||
| 5,000 | China Merchants Bank Co. Ltd. # | 9,095 | |||||
| 5,500 | China Minsheng Banking Corp. Ltd. # | 5,528 | |||||
| 6,500 | China Mobile Ltd. # | 59,675 | |||||
| 26,000 | China Petroleum & Chemical Corp. # | 23,254 | |||||
| 3,500 | China Shenhua Energy Co. Ltd. # | 10,134 | |||||
| 3,000 | Chongqing Rural Commercial Bank # | 1,319 | |||||
| 2,000 | CLP Holdings Ltd. # | 15,092 | |||||
| 19,000 | CNOOC Ltd. # | 28,764 | |||||
| 2,000 | COSCO Pacific Ltd. # | 2,560 | |||||
| 7,000 | Evergrande Real Estate Group Ltd. # | 3,312 | |||||
| 4,000 | Fushan International Energy Group Ltd. # | 1,218 | |||||
| 500 | Greentown China Holdings Ltd. # | 541 | |||||
| 800 | Guangzhou R&F Properties Co. Ltd. # | 1,158 | |||||
| 800 | Hang Seng Bank Ltd. # | 12,761 | |||||
| 500 | Hopewell Holdings Ltd. # | 1,720 | |||||
| 78,000 | Industrial & Commercial Bank of China Ltd. # | 48,082 | |||||
| 1,100 | Inner Mongolia Yitai Coal Co. (USD) # | 1,327 | |||||
| 2,000 | Jiangsu Expressway Co. Ltd. # | 2,280 | |||||
| 1,000 | Jiangxi Copper Co. Ltd. (Class H) # | 1,685 | |||||
| 6,000 | Li & Fung Ltd. # | 8,891 | |||||
| 2,000 | NWS Holdings Ltd. # | 3,375 | |||||
| 4,000 | PCCW Ltd. # | 2,009 | |||||
| 22,000 | PetroChina Co. Ltd. (Class H) # | 23,895 | |||||
| 1,500 | Power Assets Holdings Ltd. # | 13,018 | |||||
| 1,000 | Shanghai Industrial Holdings Ltd. # | 3,339 | |||||
| 4,000 | Sino Land Co. Ltd. # | 5,895 | |||||
| 3,500 | Sino-Ocean Land Holdings Ltd. # | 1,918 | |||||
| 2,000 | Soho China Ltd. # | 1,645 | |||||
| 1,600 | Wynn Macau Ltd. # | 6,659 | |||||
| 2,000 | Yangzijiang Shipbuilding Holdings Ltd. (SGD) # | 1,721 | |||||
| 200 | Yantai Changyu Pioneer Wine Co. Ltd. # | 487 | |||||
| 6,000 | Zijin Mining Group Ltd. # | 1,273 | |||||
| 1,400 | Zoomlion Heavy Industry Science and Technology Co. Ltd. # | 977 | |||||
| 430,748 | |||||||
See Notes to Financial Statements
| 24 |
| Number | |||||||
| of Shares | Value | ||||||
| Colombia: 0.2% | |||||||
| 5,184 | Ecopetrol SA | $ | 10,613 | ||||
|
Czech Republic: 0.1% |
|||||||
| 16 | Komercni Banka AS # | 3,828 | |||||
|
Denmark: 0.2% |
|||||||
| 853 | TDC AS | 7,889 | |||||
| 26 | Tryg AS # | 2,573 | |||||
| 10,462 | |||||||
Egypt: 0.0% |
|||||||
| 359 | Telecom Egypt # | 872 | |||||
|
Finland: 1.2% |
|||||||
| 148 | Elisa OYJ # | 4,259 | |||||
| 467 | Fortum OYJ | 10,620 | |||||
| 134 | Metso OYJ # | 4,390 | |||||
| 119 | Nokian Renkaat OYJ # | 4,817 | |||||
| 104 | Orion OYJ # | 3,141 | |||||
| 440 | Sampo # | 22,850 | |||||
| 556 | UPM-Kymmene OYJ # | 9,517 | |||||
| 59,594 | |||||||
|
France: 8.6% |
|||||||
| 1,886 | AXA SA # | 49,017 | |||||
| 201 | Bouygues SA # | 8,379 | |||||
| 59 | Casino Guichard Perrachon SA # | 7,018 | |||||
| 180 | CNP Assurances # | 3,814 | |||||
| 150 | Eutelsat Communications SA # | 5,093 | |||||
| 117 | Lagardere SCA # | 4,646 | |||||
| 253 | Rexel SA | 6,641 | |||||
| 1,255 | Sanofi # | 131,204 | |||||
| 161 | SCOR SE # | 5,642 | |||||
| 2,247 | Total SA # | 147,972 | |||||
| 505 | Vinci SA # | 37,502 | |||||
| 1,266 | Vivendi SA | 35,252 | |||||
| 442,180 | |||||||
| Germany: 8.7% | |||||||
| 480 | Allianz SE # | 81,164 | |||||
| 42 | Axel Springer SE # | 2,689 | |||||
| 965 | BASF SE # | 107,425 | |||||
| 1,011 | Daimler AG # | 95,681 | |||||
| 3,040 | Deutsche Telekom AG # | 49,347 | |||||
| 1,892 | E.ON SE # | 36,967 | |||||
| 63 | Hannover Rueck SE # | 5,638 | |||||
| 188 | Muenchener Rueckversicherungs AG # | 41,099 | |||||
| 514 | RWE AG # | 20,867 | |||||
| 86 | Suedzucker AG # | 2,454 | |||||
| 443,331 | |||||||
| Indonesia: 0.2% | |||||||
| 15,100 | Adaro Energy Tbk PT # | 1,314 | |||||
| 400 | Indo Tambangraya Megah Tbk PT # | 862 | |||||
| 11,500 | Perusahaan Gas Negara Tbk PT # | 5,219 | |||||
| 800 | Tambang Batubara Bukit Asam Tbk PT # | 661 | |||||
| 8,056 | |||||||
| Ireland: 0.4% | |||||||
| 770 | CRH PLC # | 21,555 | |||||
|
Israel: 0.2% |
|||||||
| 2,008 | Bezeq The Israeli Telecommunication Corp. Ltd. # | 3,577 | |||||
| 468 | Israel Chemicals Ltd. # | 4,091 | |||||
| 7,668 | |||||||
| Number | |||||||
| of Shares | Value | ||||||
| Italy: 0.4% | |||||||
| 2,132 | Snam SpA # | $ | 12,494 | ||||
| 1,584 | Terna Rete Elettrica Nazionale SpA # | 8,481 | |||||
| 20,975 | |||||||
| Japan: 1.9% | |||||||
| 1,200 | Canon, Inc. # | 37,326 | |||||
| 700 | Daiichi Sankyo Co. Ltd. # | 11,822 | |||||
| 100 | Daito Trust Construction Co. Ltd. # | 9,284 | |||||
| 300 | Eisai Co. Ltd. # | 11,688 | |||||
| 1,600 | NTT DOCOMO, Inc. # | 25,268 | |||||
| 100 | Sankyo Co. Ltd. # | 4,218 | |||||
| 99,606 | |||||||
| Luxembourg: 0.5% | |||||||
| 69 | Millicom International Cellular SA (LDR) (SEK) # | 7,016 | |||||
| 41 | RTL Group SA # | 4,672 | |||||
| 319 | SES SA (LDR) # | 11,907 | |||||
| 23,595 | |||||||
| Malaysia: 0.9% | |||||||
| 100 | British American Tobacco Malaysia Bhd | 1,810 | |||||
| 5,200 | CIMB Group Holdings Bhd # | 11,401 | |||||
| 3,700 | DiGi.Com Bhd # | 6,112 | |||||
| 400 | Lafarge Malaysia Bhd # | 1,108 | |||||
| 4,700 | Malayan Banking Bhd # | 13,950 | |||||
| 2,400 | Maxis Bhd # | 5,117 | |||||
| 600 | Parkson Holdings Bhd # | 551 | |||||
| 1,100 | Telekom Malaysia Bhd # | 1,984 | |||||
| 600 | UMW Holdings Bhd # | 2,020 | |||||
| 44,053 | |||||||
| Mexico: 0.1% | |||||||
| 350 | Arca Continental, SAB de CV | 2,089 | |||||
| 1,900 | Grupo Financiero Santander Mexico, SAB de CV | 4,659 | |||||
| 6,748 | |||||||
| Netherlands: 5.9% | |||||||
| 1,903 | Aegon NV # | 17,536 | |||||
| 82 | Koninklijke Boskalis Westminster NV # | 4,515 | |||||
| 729 | Reed Elsevier NV # | 15,780 | |||||
| 2,605 | Royal Dutch Shell PLC (GBP) # | 101,700 | |||||
| 4,137 | Royal Dutch Shell PLC (GBP) # | 151,157 | |||||
| 317 | Wolters Kluwer NV # | 8,941 | |||||
| 299,629 | |||||||
| New Zealand: 0.2% | |||||||
| 385 | Contact Energy Ltd. # | 1,778 | |||||
| 723 | Fletcher Building Ltd. # | 5,980 | |||||
| 7,758 | |||||||
| Norway: 1.7% | |||||||
| 173 | Aker Solutions ASA # | 2,693 | |||||
| 210 | Gjensidige Forsikring ASA # | 4,264 | |||||
| 803 | Orkla ASA # | 6,847 | |||||
| 394 | SeaDrill Ltd. # | 13,873 | |||||
| 1,172 | Statoil ASA # | 33,072 | |||||
| 717 | Telenor ASA # | 15,871 | |||||
| 190 | Yara International ASA # | 8,417 | |||||
| 85,037 | |||||||
| Philippines: 0.0% | |||||||
| 1,900 | Aboitiz Power Corp. # | 1,577 | |||||
See Notes to Financial Statements
| 25 |
MSCI INTERNATIONAL QUALITY DIVIDEND ETF
SCHEDULE OF INVESTMENTS
March 31, 2014 (unaudited) (continued)
| Number | |||||||
| of Shares | Value | ||||||
| Poland: 0.9% | |||||||
| 34 | Bank Handlowy w Warszawie SA # | $ | 1,281 | ||||
| 138 | Bank Pekao SA # | 8,990 | |||||
| 43 | Jastrzebska Spolka Weglowa SA # | 653 | |||||
| 147 | KGHM Polska Miedz SA # | 5,305 | |||||
| 919 | PKO Bank Polski SA # | 12,934 | |||||
| 786 | Polska Grupa Energetyczna SA # | 4,915 | |||||
| 59 | Powszechny Zaklad Ubezpieczen SA # | 8,391 | |||||
| 1,105 | Tauron Polska Energia SA # | 1,917 | |||||
| 44,386 | |||||||
| Portugal: 0.2% | |||||||
| 2,109 | EDP - Energias de Portugal SA # | 9,796 | |||||
| Russia: 2.2% | |||||||
| 12,435 | Gazprom OAO (USD) * # | 47,960 | |||||
| 536 | Lukoil OAO (USD) # | 29,912 | |||||
| 91 | MegaFon OAO (GDR) # Reg S | 2,565 | |||||
| 58 | MMC Norilsk Nickel OJSC (USD) # | 9,704 | |||||
| 543 | Mobile TeleSystems OJSC (ADR) | 9,497 | |||||
| 1,488 | Tatneft OAO (USD) # | 8,474 | |||||
| 1,388 | Uralkali OJSC (USD) # | 6,631 | |||||
| 114,743 | |||||||
| Singapore: 1.7% | |||||||
| 2,000 | DBS Group Holdings Ltd. # | 25,775 | |||||
| 2,000 | Keppel Corp. Ltd. # | 17,356 | |||||
| 1,000 | Keppel Land Ltd. # | 2,678 | |||||
| 1,000 | Singapore Exchange Ltd. # | 5,528 | |||||
| 2,000 | Singapore Press Holdings Ltd. # | 6,685 | |||||
| 8,000 | Singapore Telecommunications Ltd. # | 23,260 | |||||
| 1,000 | StarHub Ltd. # | 3,347 | |||||
| 84,629 | |||||||
| South Africa: 2.6% | |||||||
| 1,441 | African Bank Investments Ltd. # | 1,474 | |||||
| 356 | Barclays Africa Group Ltd. # | 5,047 | |||||
| 3,258 | FirstRand Ltd. # | 11,181 | |||||
| 201 | Foschini Group Ltd. # | 2,044 | |||||
| 199 | Imperial Holdings Ltd. # | 3,563 | |||||
| 268 | Investec Ltd. # | 2,159 | |||||
| 85 | Kumba Iron Ore Ltd. # | 3,049 | |||||
| 1,154 | MMI Holdings Ltd. # | 2,702 | |||||
| 1,771 | MTN Group Ltd. # | 36,282 | |||||
| 623 | Nampak Ltd. # | 2,131 | |||||
| 214 | Nedbank Group Ltd. # | 4,553 | |||||
| 541 | PPC Ltd. # | 1,502 | |||||
| 190 | Reunert Ltd. # | 1,165 | |||||
| 580 | Sasol Ltd. # | 32,468 | |||||
| 1,275 | Standard Bank Group Ltd. # | 16,814 | |||||
| 463 | Truworths International Ltd. # | 3,395 | |||||
| 391 | Vodacom Group Ltd. # | 4,830 | |||||
| 134,359 | |||||||
| South Korea: 0.2% | |||||||
| 70 | KT Corp. # | 1,949 | |||||
| 115 | KT&G Corp. # | 8,661 | |||||
| 10 | SK Telecom Co. Ltd. # | 2,029 | |||||
| 12,639 | |||||||
| Spain: 1.3% | |||||||
| 201 | Enagas SA # | 6,117 | |||||
| 424 | Ferrovial SA # | 9,195 | |||||
| 368 | Gas Natural SDG SA # | 10,358 | |||||
| 1,132 | Mapfre SA # | 4,779 | |||||
| Number | |||||||
| of Shares | Value | ||||||
| Spain: (continued) | |||||||
| 114 | Red Electrica Corp. SA # | $ | 9,274 | ||||
| 913 | Repsol YPF SA # | 23,328 | |||||
| 176 | Zardoya Otis SA # | 3,001 | |||||
| 66,052 | |||||||
| Sweden: 1.8% | |||||||
| 287 | Boliden AB # | 4,363 | |||||
| 253 | Electrolux AB # | 5,530 | |||||
| 997 | Hennes & Mauritz AB # | 42,449 | |||||
| 424 | Husqvarna AB # | 2,955 | |||||
| 129 | Industrivarden AB # | 2,497 | |||||
| 329 | Securitas AB # | 3,804 | |||||
| 399 | Skanska AB # | 9,389 | |||||
| 335 | Tele2 AB | 4,149 | |||||
| 2,502 | TeliaSonera AB # | 18,863 | |||||
| 93,999 | |||||||
| Switzerland: 6.0% | |||||||
| 2,417 | Novartis AG # | 205,385 | |||||
| 57 | Swiss Prime Site AG # | 4,851 | |||||
| 370 | Swiss Re AG # | 34,368 | |||||
| 24 | Swisscom AG # | 14,757 | |||||
| 156 | Zurich Insurance Group AG # | 47,948 | |||||
| 307,309 | |||||||
| Taiwan: 1.6% | |||||||
| 2,000 | Asia Cement Corp. # | 2,499 | |||||
| 1,000 | Asustek Computer, Inc. # | 9,909 | |||||
| 1,000 | Chicony Electronics Co. Ltd. # | 2,598 | |||||
| 1,000 | China Motor Corp. # | 894 | |||||
| 4,000 | Chunghwa Telecom Co. Ltd. # | 12,309 | |||||
| 1,000 | CTCI Corp. # | 1,501 | |||||
| 3,000 | Far Eastern New Century Corp. # | 3,193 | |||||
| 2,000 | Far EasTone Telecommunications Co. Ltd. # | 4,234 | |||||
| 2,000 | Lite-On Technology Corp. # | 2,990 | |||||
| 1,000 | Novatek Microelectronics Corp. Ltd. # | 4,596 | |||||
| 2,000 | Pou Chen Corp. # | 2,830 | |||||
| 3,000 | Quanta Computer, Inc. # | 8,088 | |||||
| 1,000 | Ruentex Development Co. Ltd. # | 1,833 | |||||
| 1,000 | Ruentex Industries Ltd. # | 2,395 | |||||
| 1,000 | Synnex Technology International Corp. # | 1,612 | |||||
| 3,000 | Taiwan Cement Corp. # | 4,640 | |||||
| 1,000 | Taiwan Fertilizer Co. Ltd. # | 2,099 | |||||
| 2,000 | Taiwan Mobile Co. Ltd. # | 6,281 | |||||
| 2,000 | Teco Electric and Machinery Co. Ltd. # | 2,238 | |||||
| 1,000 | TSRC Corp. # | 1,496 | |||||
| 1,000 | Unimicron Technology Corp. # | 807 | |||||
| 2,000 | Wistron Corp. # | 1,648 | |||||
| 1,000 | WPG Holdings Ltd. # | 1,209 | |||||
| 81,899 | |||||||
| Thailand: 0.5% | |||||||
| 1,100 | Advanced Info Service PCL (NVDR) # | 7,682 | |||||
| 1,100 | Banpu PCL (NVDR) # | 949 | |||||
| 1,000 | BEC World PCL (NVDR) # | 1,683 | |||||
| 3,700 | Krung Thai Bank PCL (NVDR) # | 2,139 | |||||
| 1,800 | PTT Global Chemical PCL (NVDR) # | 4,013 | |||||
| 900 | PTT PCL (NVDR) # | 8,296 | |||||
| 900 | Thai Oil PCL (NVDR) # | 1,473 | |||||
| 26,235 | |||||||
See Notes to Financial Statements
| 26 |
| Number | |||||||
| of Shares | Value | ||||||
| Turkey: 0.1% | |||||||
| 74 | Ford Otomotiv Sanayi AS # | $ | 755 | ||||
| 131 | Tofas Turk Otomobil Fabrikasi AS # | 744 | |||||
| 132 | Tupras-Turkiye Petrol Rafinerileri AS # | 2,793 | |||||
| 478 | Turk Telekomunikasyon AS # | 1,327 | |||||
| 5,619 | |||||||
| United Kingdom: 21.8% | |||||||
| 203 | Admiral Group PLC # | 4,834 | |||||
| 414 | Antofagasta PLC # | 5,776 | |||||
| 1,319 | AstraZeneca PLC # | 85,507 | |||||
| 3,381 | BAE Systems PLC # | 23,488 | |||||
| 19,592 | BP PLC # | 157,423 | |||||
| 1,985 | British American Tobacco PLC # | 110,735 | |||||
| 5,356 | Centrica PLC # | 29,466 | |||||
| 5,108 | GlaxoSmithKline PLC # | 136,207 | |||||
| 19,697 | HSBC Holdings PLC # | 199,440 | |||||
| 578 | ICAP PLC # | 3,643 | |||||
| 1,015 | Imperial Tobacco Group PLC # | 41,044 | |||||
| 471 | Inmarsat PLC # | 5,710 | |||||
| 608 | Investec PLC # | 4,922 | |||||
| 1,299 | J Sainsbury PLC # | 6,850 | |||||
| 6,216 | Legal & General Group PLC # | 21,222 | |||||
| 1,698 | Marks & Spencer Group PLC # | 12,782 | |||||
| 3,919 | National Grid PLC # | 53,853 | |||||
| 3,866 | RSA Insurance Group PLC | 5,772 | |||||
| 251 | Severn Trent PLC # | 7,637 | |||||
| 1,015 | SSE PLC # | 24,862 | |||||
| 2,497 | Standard Life PLC # | 15,732 | |||||
| 8,493 | Tesco PLC # | 41,889 | |||||
| 470 | TUI Travel PLC # | 3,435 | |||||
| 27,771 | Vodafone Group PLC # | 102,123 | |||||
| 2,330 | WM Morrison Supermarkets PLC # | 8,285 | |||||
| 1,112,637 | |||||||
| Number | |||||||
| of Shares | Value | ||||||
| United States: 0.1% | |||||||
| 176 | Southern Copper Corp. | $ | 5,123 | ||||
| Total Common Stocks (Cost: $5,095,201) |
5,055,927 | ||||||
| PREFERRED STOCKS: 0.8% | |||||||
|
Brazil: 0.7% |
|||||||
| 200 | Banco do Estado do Rio Grande do Sul SA (Class A) | 1,163 | |||||
| 800 | Cia Energetica de Minas Gerais | 5,407 | |||||
| 300 | Telefonica Brasil SA | 6,386 | |||||
| 2,000 | Vale SA | 25,127 | |||||
| 38,083 | |||||||
| Russia: 0.1% | |||||||
| 7,282 | Surgutneftegas OJSC (USD) # | 5,278 | |||||
| Total Preferred Stocks (Cost: $41,281) |
43,361 | ||||||
| RIGHTS: 0.0% (Cost: $0) |
|||||||
| United Kingdom: 0.0% | |||||||
| 1,449 | RSA Insurance Group PLC (GBP 56.00, expiring 04/09/14) * |
809 | |||||
| Total Investments: 99.7% (Cost: $5,136,482) |
5,100,097 | ||||||
| Other assets less liabilities: 0.3% | 14,748 | ||||||
| NET ASSETS: 100.0% | $ | 5,114,845 | |||||
| ADR | American Depositary Receipt |
| GBP | British Pound |
| GDR | Global Depositary Receipt |
| LDR | Local Depositary Receipt |
| NVDR | Non-Voting Depositary Receipt |
| SEK | Swedish Krona |
| SGD | Singapore Dollar |
| USD | United States Dollar |
| * | Non-income producing |
| # | Indicates a fair valued security which has not been valued utilizing an independent quote, but has been valued pursuant to guidelines established by the Board of Trustees. The aggregate value of fair valued securities is $4,349,095 which represents 85.0% of net assets. |
| Reg S | Security was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. |
See Notes to Financial Statements
| 27 |
MSCI INTERNATIONAL QUALITY DIVIDEND ETF
SCHEDULE OF INVESTMENTS
March 31, 2014 (unaudited) (continued)
| Summary of Investments | |||||||||
| by Sector (unaudited) | % of Investments | Value | |||||||
| Basic Materials | 5.7 | % | $ | 290,254 | |||||
| Communications | 12.3 | 628,570 | |||||||
| Consumer, Cyclical | 5.0 | 256,769 | |||||||
| Consumer, Non-cyclical | 17.9 | 910,117 | |||||||
| Diversified | 0.5 | 26,791 | |||||||
| Energy | 17.9 | 912,835 | |||||||
| Financial | 29.4 | 1,497,098 | |||||||
| Industrial | 3.8 | 194,001 | |||||||
| Technology | 1.3 | 68,320 | |||||||
| Utilities | 6.2 | 315,342 | |||||||
| 100.0 | % | $ | 5,100,097 | ||||||
The summary of inputs used to value the Fund’s investments as of March 31, 2014 is as follows:
| Level 1 Quoted Prices | Level 2 Significant Observable Inputs | Level 3 Significant Unobservable Inputs | Value | |||||||||||||||||||
| Common Stocks | ||||||||||||||||||||||
| Australia | $ | – | $ | 308,567 | $ | – | $ | 308,567 | ||||||||||||||
| Austria | – | 7,039 | – | 7,039 | ||||||||||||||||||
| Belgium | – | 5,015 | – | 5,015 | ||||||||||||||||||
| Brazil | 58,609 | – | – | 58,609 | ||||||||||||||||||
| Canada | 540,737 | – | – | 540,737 | ||||||||||||||||||
| Chile | 8,650 | – | – | 8,650 | ||||||||||||||||||
| China / Hong Kong | – | 430,748 | – | 430,748 | ||||||||||||||||||
| Colombia | 10,613 | – | – | 10,613 | ||||||||||||||||||
| Czech Republic | – | 3,828 | – | 3,828 | ||||||||||||||||||
| Denmark | 7,889 | 2,573 | – | 10,462 | ||||||||||||||||||
| Egypt | – | 872 | – | 872 | ||||||||||||||||||
| Finland | 10,620 | 48,974 | – | 59,594 | ||||||||||||||||||
| France | 41,893 | 400,287 | – | 442,180 | ||||||||||||||||||
| Germany | – | 443,331 | – | 443,331 | ||||||||||||||||||
| Indonesia | – | 8,056 | – | 8,056 | ||||||||||||||||||
| Ireland | – | 21,555 | – | 21,555 | ||||||||||||||||||
| Israel | – | 7,668 | – | 7,668 | ||||||||||||||||||
| Italy | – | 20,975 | – | 20,975 | ||||||||||||||||||
| Japan | – | 99,606 | – | 99,606 | ||||||||||||||||||
| Luxembourg | – | 23,595 | – | 23,595 | ||||||||||||||||||
| Malaysia | 1,810 | 42,243 | – | 44,053 | ||||||||||||||||||
| Mexico | 6,748 | – | – | 6,748 | ||||||||||||||||||
| Netherlands | – | 299,629 | – | 299,629 | ||||||||||||||||||
| New Zealand | – | 7,758 | – | 7,758 | ||||||||||||||||||
| Norway | – | 85,037 | – | 85,037 | ||||||||||||||||||
| Philippines | – | 1,577 | – | 1,577 | ||||||||||||||||||
| Poland | – | 44,386 | – | 44,386 | ||||||||||||||||||
| Portugal | – | 9,796 | – | 9,796 | ||||||||||||||||||
| Russia | 9,497 | 105,246 | – | 114,743 | ||||||||||||||||||
| Singapore | – | 84,629 | – | 84,629 | ||||||||||||||||||
| South Africa | – | 134,359 | – | 134,359 | ||||||||||||||||||
| South Korea | – | 12,639 | – | 12,639 | ||||||||||||||||||
| Spain | – | 66,052 | – | 66,052 | ||||||||||||||||||
| Sweden | 4,149 | 89,850 | – | 93,999 | ||||||||||||||||||
| Switzerland | – | 307,309 | – | 307,309 | ||||||||||||||||||
| Taiwan | – | 81,899 | – | 81,899 | ||||||||||||||||||
| Thailand | – | 26,235 | – | 26,235 | ||||||||||||||||||
| Turkey | – | 5,619 | – | 5,619 | ||||||||||||||||||
| United Kingdom | 5,772 | 1,106,865 | – | 1,112,637 | ||||||||||||||||||
| United States | 5,123 | – | – | 5,123 | ||||||||||||||||||
| Preferred Stocks | ||||||||||||||||||||||
| Brazil | 38,083 | – | – | 38,083 | ||||||||||||||||||
| Russia | – | 5,278 | – | 5,278 | ||||||||||||||||||
| Rights | 809 | – | – | 809 | ||||||||||||||||||
| Total | $ | 751,002 | $ | 4,349,095 | $ | – | $ | 5,100,097 | ||||||||||||||
See Notes to Financial Statements
| 28 |
MARKET VECTORS ETF TRUST
STATEMENTS OF ASSETS AND LIABILITIES
March 31, 2014 (unaudited)
| MSCI Emerging Markets Quality ETF |
MSCI Emerging Markets Quality Dividend ETF |
MSCI International Quality ETF |
MSCI International Quality Dividend ETF | ||||||||||||||||
| Assets: | |||||||||||||||||||
| Investments, at value (1) | $ | 5,170,566 | $ | 5,105,935 | $ | 10,196,231 | $ | 5,100,097 | |||||||||||
| Cash | – | 3,755 | 61,404 | 4,214 | |||||||||||||||
| Cash denominated in foreign currency, at value (2) | 16,177 | 14,100 | 14,010 | 6,967 | |||||||||||||||
| Receivables: | |||||||||||||||||||
| Investment securities sold | 5,143 | 6,809 | 4,476 | 4,097 | |||||||||||||||
| Due from Adviser | 11,359 | 8,654 | 9,568 | 8,811 | |||||||||||||||
| Dividends | 4,295 | 6,003 | 28,322 | 18,842 | |||||||||||||||
| Total assets | 5,207,540 | 5,145,256 | 10,314,011 | 5,143,028 | |||||||||||||||
| Liabilities: | |||||||||||||||||||
| Payables: | |||||||||||||||||||
| Investment securities purchased | 5,185 | 6,864 | 4,502 | 4,116 | |||||||||||||||
| Due to custodian | 9,174 | – | – | – | |||||||||||||||
| Accrued expenses | 29,696 | 24,696 | 28,855 | 24,067 | |||||||||||||||
| Total liabilities | 44,055 | 31,560 | 33,357 | 28,183 | |||||||||||||||
| NET ASSETS | $ | 5,163,485 | $ | 5,113,696 | $ | 10,280,654 | $ | 5,114,845 | |||||||||||
| Shares outstanding | 100,000 | 100,000 | 200,000 | 100,000 | |||||||||||||||
| Net asset value, redemption and offering price per share | $ | 51.63 | $ | 51.14 | $ | 51.40 | $ | 51.15 | |||||||||||
| Net assets consist of: | |||||||||||||||||||
| Aggregate paid in capital | $ | 5,028,438 | $ | 5,026,356 | $ | 10,091,205 | $ | 5,039,718 | |||||||||||
| Net unrealized appreciation (depreciation) | 122,181 | 73,696 | 150,798 | (36,291 | ) | ||||||||||||||
| Undistributed net investment income | 10,056 | 13,675 | 63,293 | 120,476 | |||||||||||||||
| Accumulated net realized gain (loss) | 2,810 | (31 | ) | (24,642 | ) | (9,058 | ) | ||||||||||||
| $ | 5,163,485 | $ | 5,113,696 | $ | 10,280,654 | $ | 5,114,845 | ||||||||||||
| (1) Cost of investments | $ | 5,048,336 | $ | 5,032,198 | $ | 10,045,468 | $ | 5,136,482 | |||||||||||
| (2) Cost of cash denominated in foreign currency | $ | 16,236 | $ | 14,117 | $ | 14,033 | $ | 6,972 | |||||||||||
See Notes to Financial Statements
| 29 |
MARKET VECTORS ETF TRUST
For the Period Ended March 31, 2014 (unaudited)
| MSCI Emerging Markets Quality ETF* | MSCI Emerging Markets Quality Dividend ETF* | MSCI International Quality ETF* | MSCI International Quality Dividend ETF* | ||||||||||||||||
| Income: | |||||||||||||||||||
| Dividends | $ | 16,419 | $ | 20,631 | $ | 77,216 | $ | 127,809 | |||||||||||
| Foreign taxes withheld | (1,677 | ) | (2,321 | ) | (5,398 | ) | (3,076 | ) | |||||||||||
| Total income | 14,742 | 18,310 | 71,818 | 124,733 | |||||||||||||||
| Expenses: | |||||||||||||||||||
| Management fees | 4,672 | 4,597 | 8,498 | 4,229 | |||||||||||||||
| Professional fees | 11,620 | 10,943 | 11,620 | 10,961 | |||||||||||||||
| Trustees’ fees and expenses | 409 | 381 | 408 | 381 | |||||||||||||||
| Reports to shareholders | 5,314 | 5,345 | 5,313 | 4,867 | |||||||||||||||
| Indicative optimized portfolio value fee | 3,945 | 3,944 | 3,937 | 3,939 | |||||||||||||||
| Custodian fees | 6,084 | 1,604 | 6,431 | 1,605 | |||||||||||||||
| Registration fees | 1,354 | 1,357 | 1,349 | 1,349 | |||||||||||||||
| Transfer agent fees | 228 | 240 | 230 | 228 | |||||||||||||||
| Fund accounting fees | 2,579 | 2,699 | 2,571 | 2,571 | |||||||||||||||
| Interest | 14 | 38 | 26 | 27 | |||||||||||||||
| Other | 136 | 136 | 141 | 135 | |||||||||||||||
| Total expenses | 36,355 | 31,284 | 40,524 | 30,292 | |||||||||||||||
| Waiver of management fees | (4,672 | ) | (4,597 | ) | (8,498 | ) | (4,229 | ) | |||||||||||
| Expenses assumed by the Adviser | (26,997 | ) | (22,052 | ) | (23,501 | ) | (21,806 | ) | |||||||||||
| Net expenses | 4,686 | 4,635 | 8,525 | 4,257 | |||||||||||||||
| Net investment income | 10,056 | 13,675 | 63,293 | 120,476 | |||||||||||||||
| Net realized gain (loss) on: | |||||||||||||||||||
| Investments | (397 | ) | (291 | ) | 673 | (717 | ) | ||||||||||||
| Foreign currency transactions and foreign denominated assets and liabilities | 3,207 | 260 | (25,315 | ) | (8,341 | ) | |||||||||||||
| Net realized gain (loss) | 2,810 | (31 | ) | (24,642 | ) | (9,058 | ) | ||||||||||||
| Net change in unrealized appreciation (depreciation) on: | |||||||||||||||||||
| Investments | 122,230 | 73,737 | 150,763 | (36,385 | ) | ||||||||||||||
| Foreign currency transactions and foreign denominated assets and liabilities | (49 | ) | (41 | ) | 35 | 94 | |||||||||||||
| Net change in unrealized appreciation (depreciation) | 122,181 | 73,696 | 150,798 | (36,291 | ) | ||||||||||||||
| Net Increase in Net Assets Resulting from Operations | $ | 135,047 | $ | 87,340 | $ | 189,449 | $ | 75,127 | |||||||||||
* For the period January 21, 2014 (commencement of operations) through March 31, 2014.
See Notes to Financial Statements
| 30 |
MARKET VECTORS ETF TRUST
STATEMENTS OF CHANGES IN NET ASSETS (unaudited)
| MSCI Emerging Markets Quality ETF | MSCI Emerging Markets Quality Dividend ETF | MSCI International Quality ETF | MSCI International Quality Dividend ETF | ||||||||||||||||
| For the Period January 21, 2014* through March 31, 2014 | For the Period January 21, 2014* through March 31, 2014 | For the Period January 21, 2014* through March 31, 2014 | For the Period January 21, 2014* through March 31, 2014 | ||||||||||||||||
| Operations: | |||||||||||||||||||
| Net investment income | $ | 10,056 | $ | 13,675 | $ | 63,293 | $ | 120,476 | |||||||||||
| Net realized gain (loss) | 2,810 | (31 | ) | (24,642 | ) | (9,058 | ) | ||||||||||||
| Net change in unrealized appreciation (depreciation) | 122,181 | 73,696 | 150,798 | (36,291 | ) | ||||||||||||||
| Net increase in net assets resulting from operations | 135,047 | 87,340 | 189,449 | 75,127 | |||||||||||||||
| Share transactions:** | |||||||||||||||||||
| Proceeds from sale of shares | 5,028,438 | 5,026,356 | 10,091,205 | 5,039,718 | |||||||||||||||
| Cost of shares redeemed | – | – | – | – | |||||||||||||||
| Increase in net assets resulting from share transactions | 5,028,438 | 5,026,356 | 10,091,205 | 5,039,718 | |||||||||||||||
| Total increase in net assets | 5,163,485 | 5,113,696 | $ | 10,280,654 | 5,114,845 | ||||||||||||||
| Net Assets, beginning of period | – | – | – | – | |||||||||||||||
| Net Assets, end of period† | $ | 5,163,485 | $ | 5,113,696 | $ | 10,280,654 | $ | 5,114,845 | |||||||||||
| † Including undistributed net investment income | $ | 10,056 | $ | 13,675 | $ | 63,293 | $ | 120,476 | |||||||||||
| ** Shares of Common Stock Issued (no par value) | |||||||||||||||||||
| Shares sold | 100,000 | 100,000 | 200,000 | 100,000 | |||||||||||||||
| Shares redeemed | – | – | – | – | |||||||||||||||
| Net increase | 100,000 | 100,000 | 200,000 | 100,000 | |||||||||||||||
* Commencement of operations
See Notes to Financial Statements
| 31 |
| MARKET VECTORS ETF TRUST |
| FINANCIAL HIGHLIGHTS (unaudited) |
| For a share outstanding throughout the period: |
| (a) | Commencement of operations |
| (b) | Total return is calculated assuming an initial investment made at the net asset value at the beginning of period, reinvestment of any dividends and distributions at net asset value on the dividend/distributions payment date and a redemption at the net asset value on the last day of the period. The return does not reflect the deduction of taxes that a shareholder would pay on Fund dividends/distributions or the redemption of Fund shares. |
| (c) | Not annualized |
| (d) | Annualized |
See Notes to Financial Statements
| 32 |
| MARKET VECTORS ETF TRUST |
| FINANCIAL HIGHLIGHTS (unaudited) |
| For a share outstanding throughout the period: |
| (a) | Commencement of operations |
| (b) | Total return is calculated assuming an initial investment made at the net asset value at the beginning of period, reinvestment of any dividends and distributions at net asset value on the dividend/distributions payment date and a redemption at the net asset value on the last day of the period. The return does not reflect the deduction of taxes that a shareholder would pay on Fund dividends/distributions or the redemption of Fund shares. |
| (c) | Not annualized |
| (d) | Annualized |
See Notes to Financial Statements
| 33 |
MARKET VECTORS ETF TRUST
March 31, 2014 (unaudited)
Note 1–Fund Organization–Market Vectors ETF Trust (the “Trust”) is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. The Trust was incorporated in Delaware as a statutory trust on March 15, 2001. The Trust operates as a series fund, and as of March 31, 2014, offers fifty-eight investment portfolios, each of which represents a separate series of the Trust.
These financial statements relate only to the following investment portfolios: MSCI Emerging Markets Quality ETF, MSCI Emerging Markets Quality Dividend ETF, MSCI International Quality ETF and MSCI International Quality Dividend ETF, (each a “Fund” and, together, the “Funds”). Each Fund was created to provide investors with the opportunity to purchase a security representing a proportionate undivided interest in a portfolio of securities consisting of substantially all of the common stocks in substantially the same weighting, in an index licensed, managed and published by MSCI, Inc.
The Funds’ commencement of operations dates and their respective Indices are presented below:
| Fund | Commencement of Operations |
Index | |||
| MSCI Emerging Markets Quality ETF | January 21, 2014 | MSCI Emerging Markets Quality Index | |||
| MSCI Emerging Markets Quality Dividend ETF | January 21, 2014 | MSCI Emerging Markets High Dividend Yield Index | |||
| MSCI International Quality ETF | January 21, 2014 | MSCI ACWI ex USA Quality Index | |||
| MSCI International Quality Dividend ETF | January 21, 2014 | MSCI ACWI ex USA High Dividend Quality Index | |||
Note 2–Significant Accounting Policies–The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
The Funds are investment companies and are following accounting and reporting requirements of Accounting Standard Codification (“ASC”) 946 Financial Services – Investment Companies.
The following is a summary of significant accounting policies followed by the Funds.
| A. | Security Valuation–The Funds value their investments in securities and other assets and liabilities carried at fair value daily. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. Securities traded on national exchanges or traded on the NASDAQ National Market System are valued at the last sales price as reported at the close of each business day. Securities traded on the NASDAQ Stock Market are valued at the NASDAQ official closing price. Over-the-counter securities not included in the NASDAQ National Market System and listed securities for which no sale was reported are valued at the mean of the bid and ask prices. To the extent these securities are actively traded they are categorized as Level 1 in the fair value hierarchy (described below). Certain foreign securities, whose values may be affected by market direction or events occurring before the Funds’ pricing time (4:00 p.m. Eastern Standard Time) but after the last close of the securities’ primary market, are fair valued using a pricing service and are categorized as Level 2 in the fair value hierarchy. The pricing service, using methods approved by the Board of Trustees, considers the correlation of the trading patterns of the foreign security to intraday trading in the U.S. markets, based on indices of domestic securities and other appropriate indicators such as prices of relevant ADR’s and futures contracts. Participatory Notes are fair valued using the current market value of the underlying equity investments. The Funds may also fair value securities in other situations, such as, when a particular foreign market is closed but the Fund is open. Short-term obligations with more than sixty days remaining to maturity are valued at market value. Short-term obligations with sixty days or less to maturity are valued at amortized cost, which with accrued interest approximates fair value. Money market fund investments are valued at net asset value and are considered to be Level 1 in the fair value hierarchy. Forward foreign currency contracts are valued at the spot currency rate plus an amount (“points”), which reflects the differences in the interest rates between the U.S. and foreign markets and are classified as Level 2 in the fair value hierarchy. Securities for which quotations are not available are stated at fair value as determined by the Pricing Committee of Van Eck Associates Corporation (the “Adviser”) appointed by the Board of Trustees. The Pricing Committee provides oversight of the Funds’ valuation policies and procedures, which are approved by the Funds’ Board of Trustees. Among other things, these procedures allow the Funds to utilize independent pricing services, quotations from securities, dealers, and other market sources to determine fair value. The Pricing Committee convenes regularly to review the fair value of financial |
| 34 |
| instruments for which market prices are not readily available. The Pricing Committee employs various methods for calibrating the valuation approaches utilized to determine fair value, including a regular review of key inputs and assumptions, transactional back-testing and disposition analysis. |
| Certain factors such as economic conditions, political events, market trends, the nature of and duration of any restrictions on disposition, trading in similar securities of the issuer or comparable issuers and other security specific information are used to determine the fair value of these securities. Depending on the relative significance of valuation inputs, these securities may be classified either as Level 2 or Level 3 in the fair value hierarchy. The price which the Funds may realize upon sale of an investment may differ materially from the value presented in the Schedules of Investments. |
| The Funds utilize various methods to measure the fair value of its investments on a recurring basis which includes a hierarchy that prioritizes inputs to valuation methods used to measure fair value. The fair value hierarchy gives highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The transfers between levels of the fair value hierarchy assume the financial instruments were transferred at the beginning of the reporting period. The three levels of the fair value hierarchy are described below: |
| Level 1 - Quoted prices in active markets for identical securities. |
| Level 2 - Significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). |
| Level 3 - Significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). |
| A summary of the inputs, the levels used to value the Funds’ investments, and transfers between levels are located in the Schedules of Investments. Additionally, tables that reconcile the valuation of the Funds’ Level 3 investments and that present additional information about valuation methodologies and unobservable inputs, if applicable, are located in the Schedules of Investments. |
| B. | Federal Income Taxes–It is each Fund’s policy to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable income to its shareholders. Therefore, no federal income tax provision is required. |
| C. | Dividends and Distributions to Shareholders–Dividends to shareholders from net investment income and distributions from net realized capital gains, if any, are declared and paid quarterly by each Fund. Income dividends and capital gain distributions are determined in accordance with U.S. income tax regulations, which may differ from such amounts determined in accordance with GAAP. |
| D. | Currency Translation–Assets and liabilities denominated in foreign currencies and commitments under foreign currency contracts are translated into U.S. dollars at the closing prices of such currencies each business day. Purchases and sales of investments are translated at the exchange rates prevailing when such investments are acquired or sold. Foreign denominated income and expenses are translated at the exchange rates prevailing when accrued. The portion of realized and unrealized gains and losses on investments that result from fluctuations in foreign currency exchange rates is not separately disclosed in the financial statements. Recognized gains or losses attributable to foreign currency fluctuations on foreign currency denominated assets, other than investments, and liabilities are recorded as net realized gain (loss) on foreign currency transactions and foreign denominated assets and liabilities in the Statements of Operations. |
| E. | Restricted Securities–The Funds may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities, if any, is included at the end of each Fund’s Schedule of Investments. |
| F. | Use of Derivative Instruments–The Funds may make investments in derivative instruments, including, but not limited to, options, futures, swaps and other derivatives relating to foreign currency transactions. A derivative is an instrument whose value is derived from underlying assets, indices, reference rates or a combination of these factors. Derivative |
| 35 |
MARKET VECTORS ETF TRUST
NOTES TO FINANCIAL STATEMENTS
March 31, 2014 (unaudited) (continued)
| instruments may be privately negotiated contracts (often referred to as over-the-counter (“OTC”) derivatives) or they may be listed and traded on an exchange. Derivative contracts may involve future commitments to purchase or sell financial instruments at specified terms on a specified date, or to exchange interest payment streams or currencies based on a notional or contractual amount. Derivative instruments may involve a high degree of financial risk. The use of derivative instruments also involves the risk of loss if the Adviser is incorrect in its expectation of the timing or level of fluctuations in securities prices, interest rates or currency prices. Investments in derivative instruments also include the risk of default by the counterparty, the risk that the investment may not be liquid and the risk that a small movement in the price of the underlying security or benchmark may result in a disproportionately large movement, unfavorable or favorable, in the price of the derivative instruments. The Funds held no derivative instruments during the period ended March 31, 2014. |
| G. | Repurchase Agreements–The Funds may enter into repurchase agreements with financial institutions, deemed to be creditworthy by the Adviser, to generate income from their excess cash balances and to invest securities lending cash collateral. A repurchase agreement is an agreement under which a Fund acquires securities from a seller, subject to resale to the seller at an agreed upon price and date. A Fund, through its custodian/securities lending agent, takes possession of securities collateralizing the repurchase agreement. Pursuant to the terms of the repurchase agreement, such securities must have an aggregate market value greater than or equal to the terms of the repurchase price plus accrued interest at all times. If the value of the underlying securities falls below the value of the repurchase price plus accrued interest, the Funds will require the seller to deposit additional collateral by the next business day. If the request for additional collateral is not met, or the seller defaults on its repurchase obligation, the Funds maintain their right to sell the underlying securities at market value and may claim any resulting loss against the seller. As of March 31, 2014, the Funds held no repurchase agreements. |
| H. | Participatory Notes–The Funds may invest in Participatory Notes (“P-Notes”) issued by banks or broker-dealers and designed to offer a return linked to the performance of a particular underlying equity security or market. P-Notes can have the characteristics or take the form of various instruments, including, but not limited to, certificates or warrants. The Funds are entitled to receive any dividends paid in connection with the underlying security, however, generally do not receive voting rights. |
| I. | Other–Security transactions are accounted for on trade date. Transactions in certain securities may take longer than the customary settlement cycle to be completed. The counterparty is required to collateralize such trades with cash in excess of the market value of the transaction, which is held at the custodian and marked to market daily. Realized gains and losses are calculated on the identified cost basis. Dividend income is recorded on the ex-dividend date except that certain dividends from foreign securities are recognized upon notification of the ex-dividend date/rate. Interest income, including amortization of premiums and discounts, is accrued as earned. |
| In the normal course of business, the Funds enter into contracts that contain a variety of general indemnifications. The Funds’ maximum exposure under these agreements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Adviser believes the risk of loss under these arrangements to be remote. |
Note 3–Investment Management and Other Agreements–The Adviser is the investment adviser to the Funds. The Adviser receives a management fee, calculated daily and payable monthly based on an annual rate of 0.50% from MSCI Emerging Markets Quality ETF and MSCI Emerging Markets Quality Dividend ETF’s average daily net assets, and 0.45% from MSCI International Quality ETF and MSCI International Quality Dividend ETF’s average daily net assets. The Adviser has agreed, at least until February 1, 2015, to voluntarily waive or limit its fees and to assume as its own expense certain expenses otherwise payable by the Funds so that each Fund’s total annual operating expenses does not exceed the expense caps, excluding interest expense, listed in the table below.
The expense caps and the amounts waived/assumed by the Adviser for the period ended March 31, 2014, are as follows:
| Fund | Expense Cap | Waiver of Management Fees | Expenses Assumed by the Adviser | |||||||||
| MSCI Emerging Markets Quality ETF | 0.50 | % | $4,672 | $26,997 | ||||||||
| MSCI Emerging Markets Quality Dividend ETF | 0.50 | 4,597 | 22,052 | |||||||||
| MSCI International Quality ETF | 0.45 | 8,498 | 23,501 | |||||||||
| MSCI International Quality Dividend ETF | 0.45 | 4,229 | 21,806 | |||||||||
In addition, Van Eck Securities Corporation, an affiliate of the Adviser, acts as the Funds’ Distributor. Certain officers and a Trustee of the Trust are officers, directors or stockholders of the Adviser and Distributor.
| 36 |
Note 4–Investments–For the period ended March 31, 2014, the cost of purchases and proceeds from sales of investments other than U.S. government obligations and short-term obligations (excluding in-kind transactions described in Note 6) were as follows:
| Fund | Cost of Investments Purchased | Proceeds from Investments Sold | ||||||
| MSCI Emerging Markets Quality ETF | $ 5,065,468 | $16,735 | ||||||
| MSCI Emerging Markets Quality Dividend ETF | 5,047,070 | 14,581 | ||||||
| MSCI International Quality ETF | 10,166,336 | 138,785 | ||||||
| MSCI International Quality Dividend ETF | 5,198,919 | 61,720 | ||||||
Note 5–Income Taxes–As of March 31, 2014, for Federal income tax purposes, the identified cost of investments owned, net unrealized appreciation (depreciation), gross unrealized appreciation, and gross unrealized depreciation of investments were as follows:
| Fund | Cost of Investments | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
| MSCI Emerging Markets Quality ETF | $ | 5,048,336 | $ | 267,072 | $ | (144,842 | ) | $ 122,230 | ||||||||
| MSCI Emerging Markets Quality Dividend ETF | 5,032,198 | 205,971 | (132,234 | ) | 73,737 | |||||||||||
| MSCI International Quality ETF | 10,045,468 | 385,317 | (234,554 | ) | 150,763 | |||||||||||
| MSCI International Quality Dividend ETF | 5,136,482 | 162,815 | (199,200 | ) | (36,385 | ) | ||||||||||
The Funds recognize the tax benefits of uncertain tax positions only where the position is “more-likely-than-not” to be sustained assuming examination by applicable tax authorities. Management has analyzed the Funds’ tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions expected to be taken in the Funds’ current tax year. Therefore, no provision for income tax is required in the Funds’ financial statements.
The Funds recognize interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statements of Operations. During the period ended March 31, 2014, the Funds did not incur any interest or penalties.
Note 6–Capital Share Transactions–As of March 31, 2014, there were an unlimited number of capital shares of beneficial interest authorized by the Trust with no par value. Shares are issued and redeemed by the Funds only in Creation Units, consisting of at least 100,000 shares, or multiples thereof. The consideration for the purchase or redemption of Creation Units of the Funds generally consists of the in-kind contribution or distribution of securities constituting the Funds’ underlying index plus a small amount of cash. For the period ended March 31, 2014, the Funds had no in-kind contributions or redemptions.
Note 7–Concentration of Risk–The investment objective of each Fund is to seek investment results that correspond generally to the price and yield performance, before fees and expenses, of its underlying index, as indicated in the name of each Fund. The Adviser uses a “passive” or index approach to achieve each Fund’s investment objective by investing in a portfolio of securities that generally replicates the Funds’ index. Each of the Funds is classified as a non-diversified fund under the 1940 Act. Non-diversified funds generally hold securities of fewer issuers than diversified funds and may be more susceptible to the risks associated with these particular issuers, or to a single economic, political or regulatory occurrence affecting these issuers. The Funds may purchase securities on foreign exchanges. Securities of foreign issuers involve special risks and considerations not typically associated with investing in U.S. issuers. These risks include devaluation of currencies, currency controls, less reliable information about issuers, different securities transaction clearance and settlement practices, future adverse political and economic developments and local/regional conflicts. These risks are heightened for investments in emerging market countries. Moreover, securities of many foreign issuers and their markets may be less liquid and their prices more volatile than those of comparable U.S. issuers.
Investments in P-Notes involve certain risks in addition to those associated with a direct investment in the underlying foreign companies or foreign securities markets whose return they seek to replicate. For instance, there can be no assurance that the trading price of a P-Note will equal the underlying value of the foreign company or foreign securities market that it seeks to replicate. P-Notes constitute direct, general and unsecured contractual obligations of the banks or broker-dealers that issue them, which therefore subject the Funds to counterparty risk. The Funds are relying on the creditworthiness of the counterparty issuing the P-Note and have no rights under a P-Note against the issuer of the underlying security.
| 37 |
MARKET VECTORS ETF TRUST
NOTES TO FINANCIAL STATEMENTS
March 31, 2014 (unaudited) (continued)
As a result of recent events involving Ukraine and the Russian Federation, the United States and the European Union have imposed sanctions on certain Russian individuals and companies. These sanctions do not currently impact the Funds. Additional economic sanctions may be imposed or other actions may be taken that may adversely affect the value and liquidity of the Russian-related issuers’ held by the Funds.
Note 8–Trustee Deferred Compensation Plan–The Trust has a Deferred Compensation Plan (the “Plan”) for Trustees under which the Trustees can elect to defer receipt of their trustee fees until retirement, disability or termination from the Board of Trustees. The fees otherwise payable to the participating Trustees are deemed invested in shares of the Funds as directed by the Trustees.
The expense for the Plan, if any, is included in “Trustees’ fees and expenses” in the Statements of Operations. The liability for the Plan, if any, is shown as “Deferred Trustee fees” in the Statements of Assets and Liabilities.
Note 9–Securities Lending–To generate additional income, each of the Funds may lend its securities pursuant to a securities lending agreement with The Bank of New York Mellon, the securities lending agent and also the Funds’ custodian. Each Fund may lend up to 33% of its investments requiring that the loan be continuously collateralized by cash, U.S. government or U.S. government agency securities, shares of an investment trust or mutual fund, or any combination of cash and such securities at all times equal to at least 102% (105% for foreign securities) of the market value plus accrued interest on the securities loaned. During the term of the loan, the Funds will continue to receive any dividends or amounts equivalent thereto, on the securities loaned while receiving a fee from the borrower or earning interest on the investment of the cash collateral. The Funds may pay reasonable finders’, administrative and custodial fees in connection with a loan of its securities and shares the interest earned on the collateral and borrowing fees received with the securities lending agent. The cash collateral is maintained on the Funds’ behalf by the lending agent and is invested in the Bank of New York Overnight Government Fund, the Bank of New York Institutional Cash Reserve, or repurchase agreements collateralized by obligations of the U.S. Treasury and/or Government Agencies. Loans are subject to termination at the option of the borrower or the Funds. Upon termination of the loan, the borrower will return to the lender securities identical to the securities loaned. The Funds bear the risk of delay in recovery of, or even loss of rights in, the securities loaned should the borrower of the securities fail financially. As of March 31, 2014, the Funds had no securities on loan.
Note 10–Bank Line of Credit–Certain Funds may participate in a $200 million committed credit facility (the “Facility”) to be utilized for temporary financing until the settlement of sales or purchases of portfolio securities, the repurchase or redemption of shares of the Funds at the request of the shareholders and other temporary or emergency purposes. The Funds have agreed to pay commitment fees, pro rata, based on the unused but available balance. Interest is charged to the Funds at rates based on prevailing market rates in effect at the time of borrowings. During the period ended March 31, 2014, the following Funds borrowed under this Facility:
| Fund | Days Outstanding | Average Daily Loan Balance | Average Interest Rate |
||||||||||
| MSCI Emerging Markets Quality ETF | 3 | $ | 116,110 | 1.47 | % | ||||||||
| MSCI Emerging Markets Quality Dividend ETF | 2 | 470,000 | 1.47 | ||||||||||
| MSCI International Quality ETF | 2 | 313,931 | 1.47 | ||||||||||
| MSCI International Quality Dividend ETF | 7 | 100,384 | 1.46 | ||||||||||
As of March 31, 2014, the Funds had no outstanding loan balances.
Note 11–Custodian Fees–The Funds have entered into an expense offset agreement with the custodian wherein they receive a credit toward the reduction of custodian fees whenever there are uninvested cash balances. The Funds could have invested their cash balances elsewhere if they had not agreed to a reduction in fees under the expense offset agreement with the custodian. For the period ended March 31, 2014, the Funds did not have any expense offsets to reduce custodian fees.
Note 12–Subsequent Event Review–The Funds have evaluated subsequent events and transactions for potential recognition or disclosure through the date the financial statements were issued.
The following dividends from net investment income were declared and paid subsequent to March 31, 2014:
| Fund | Ex-Date | Record Date | Payable Date | Per Share | |||||||||
| MSCI Emerging Markets Quality ETF | 4/1/2014 | 4/3/2014 | 4/7/2014 | $ | 0.1024 | ||||||||
| MSCI Emerging Markets Quality Dividend ETF | 4/1/2014 | 4/3/2014 | 4/7/2014 | $ | 0.1368 | ||||||||
| MSCI International Quality ETF | 4/1/2014 | 4/3/2014 | 4/7/2014 | $ | 0.3168 | ||||||||
| MSCI International Quality Dividend ETF | 4/1/2014 | 4/3/2014 | 4/7/2014 | $ | 0.3500 | ||||||||
| 38 |
MARKET VECTORS ETF TRUST
APPROVAL OF INVESTMENT MANAGEMENT AGREEMENTS
(unaudited)
At a meeting held on September 11, 2013 (the “Meeting”), the Board of Trustees (the “Board”) of Market Vectors ETF Trust (the “Trust”), including all of the Trustees that are not interested persons of the Trust (the “Independent Trustees”), approved an investment management agreement between the Trust and Van Eck Associates Corporation (the “Adviser”) (the “Investment Management Agreement”) with respect to the MSCI Emerging Markets Quality Dividend ETF, MSCI Emerging Markets Quality ETF, MSCI International Quality Dividend ETF and MSCI International Quality ETF (each, a “Fund” and together, the “Funds”).
The Board’s approval of the Investment Management Agreement was based on a comprehensive consideration of all of the information available to the Trustees and was not the result of any single factor. Some of the factors that figured particularly in the Trustees’ deliberations and how the Trustees considered those factors are described below, although individual Trustees may have evaluated the information presented differently, giving different weights to various factors.
In advance of each of the Meeting, the Trustees received materials from the Adviser, including expense information for other funds. The Adviser provided the Trustees with information regarding, among other things, the various aspects of each Fund’s proposed investment program, fee arrangements and service provider arrangements. The Independent Trustees’ consideration of the Investment Management Agreement was based, in part, on information obtained through discussions with management of the Funds and the Adviser at the Meeting, information obtained at other meetings of the Trustees and/or based on their review of the materials provided by the Adviser, including the background and experience of the portfolio managers and others proposed to be involved in the management of the Funds. The Trustees also considered the terms and scope of services that the Adviser would provide under the Investment Management Agreement, including the Adviser’s commitment to waive certain fees and/or pay expenses of each of the Funds to the extent necessary to prevent the operating expenses of each of the Funds from exceeding agreed upon limits for a period of at least one year following the effective date of each Fund’s respective registration statement.
In addition, the Trustees were given data on the exchange-traded fund market and expense ratios of other funds. The Trustees considered the benefits, other than the fees under the Investment Management Agreement, that the Adviser would receive from serving as adviser to each Fund, including any it may receive from providing administrative services to each of the Funds and from an affiliate of the Adviser serving as distributor to each Fund. The Trustees did not consider historical information about the cost of the services provided by the Adviser or the profitability of each of the Funds to the Adviser because the Funds had not yet commenced operations. In addition, because the Funds had not yet commenced operations, the Trustees could not consider the historical performance or the quality of services previously provided to each of the Funds, although they concluded that the nature, quality, and extent of the services to be provided by the Adviser were appropriate based on the Trustees’ knowledge of the Adviser and its personnel and the operations of the other series of the Trust.
The Independent Trustees were advised by and met in executive session with their independent counsel at the Meeting as part of their consideration of the Investment Management Agreement.
In voting to approve the Investment Management Agreement, the Trustees, including the Independent Trustees, concluded that the terms of the Investment Management Agreement are reasonable and fair in light of the services to be performed, the fees paid by certain other funds, expenses to be incurred and such other matters as the Trustees considered relevant in the exercise of their reasonable judgment. The Trustees further concluded that the Investment Management Agreement is in the interest of each Fund and such Fund’s shareholders.
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This report is intended for the Funds’ shareholders. It may not be distributed to prospective investors unless it is preceded or accompanied by a Market Vectors ETF Trust (the “Trust”) Prospectus and Summary Prospectus, which includes more complete information. An investor should consider the investment objective, risks, and charges and expenses of the Funds carefully before investing. The prospectus and summary prospectus contains this and other information about the investment company. Please read the prospectus and summary prospectus carefully before investing.
Additional information about the Trust’s Board of Trustees/Officers and a description of the policies and procedures the Trust uses to determine how to vote proxies relating to portfolio securities are provided in the Statement of Additional Information. The Statement of Additional Information and information regarding how the Trust voted proxies relating to portfolio securities during the most recent twelve month period ending June 30 is available, without charge, by calling 1.888.MKT.VCTR, or by visiting marketvectorsetfs.com, or on the Securities and Exchange Commission’s website at http://www.sec.gov.
The Trust files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. The Trust’s Form N-Qs are available on the Commission’s website at http://www.sec.gov and may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1.202.942.8090. The Funds’ complete schedules of portfolio holdings are also available by calling 1.888.MKT.VCTR or by visiting marketvectorsetfs.com.
Investment Adviser: Van Eck Associates Corporation
Distributor: Van Eck Securities Corporation 335 Madison Avenue New York, NY 10017 vaneck.com
Account Assistance: 1.888.MKT.VCTR |
MVQUALSAR
Item 2. CODE OF ETHICS.
Not applicable.
Item 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable.
Item 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable.
Item 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
Item 6. SCHEDULE OF INVESTMENTS.
Information included in Item 1.
Item 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
Item 8. PORTFOLIO MANAGER OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
Item 9. PURCHASE OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
Item 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Not applicable.
Item 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers, or
persons performing similar functions, have concluded that the registrant's
disclosure controls and procedures (as defined in Rule 30a-3(c) under the
Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR
270.30a-3(c)) are effective, as of a date within 90 days of the filing
date of the report that includes the disclosure required by this paragraph,
based on their evaluation of these controls and procedures required
by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules
13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934,
as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR
270.30a(d)) that occurred during the second fiscal quarter of the period
covered by this report that has materially affected, or is reasonably
likely to materially affect, the registrant's internal control over
financial reporting.
Item 12. EXHIBITS.
(a)(1) Not applicable.
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2
under the Act (17 CFR 270.30a-2) is attached as Exhibit 99.CERT.
(b) Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 is
furnished as Exhibit 99.906CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) MARKET VECTORS ETF TRUST
By (Signature and Title) /s/ John J. Crimmins, Treasurer & Chief Financial Officer
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Date June 5, 2014
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Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title) /s/ Jan F. van Eck, Chief Executive Officer
--------------------------------------------
Date June 5, 2014
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By (Signature and Title) /s/ John J. Crimmins, Treasurer & Chief Financial Officer
-----------------------------------------------------------
Date June 5, 2014
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