Indonesian-focused ETF Launches

January 20, 2009 ( - Van Eck Global has launched what it calls the first exchange-traded fund (ETF) focused on Indonesia.

The Market Vectors Indonesia Index ETF (ticker: IDX), launched on NYSE Arca, seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Market Vectors Indonesia Index (ticker: MVINDO), according to the firm.   The fund’s total net expenses are 0.71%.

Underlying Index

According to the announcement, MVINDO, the index underlying the new fund, is “…pure-play in focus, including many of the largest and most liquid companies that are domiciled and primarily listed in Indonesia, or that derive at least 50% of their revenues in the country.”   The firm notes that, as of December 31, 2008, the index contained 25 names, all onshore, and covered an array of industries, including:

  • banks, with an index weighting of 30.1%,
  • energy (15.7%),
  • telecommunications (12.7%) and
  • materials (11.4%).

The top three holdings as of December 31, 2008 were Bank Central Asia (8.8%), Telekomunikasi Indonesia (7.5%) and Bank Rakyat Indonesia (7.0%).

“Market Vectors is pleased to offer the first ETF focused on this key emerging market nation, which has made great political and economic strides in recent years,” said Jan van Eck, Principal at Van Eck Global. “Like all emerging markets, Indonesia is challenged by the current global economic climate, but its ongoing reforms should help sustain its longer-term growth potential.”