First U.S.-based ETF to offer access to German small-cap sector……
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New York-based asset manager Van Eck Global has launched Market Vectors Germany Small-Cap ETF (NYSE Arca: GERJ), the first exchange-traded fund (ETF) designed to give investors pure-play exposure to Europe’s largest economy.
The German economy is the fourth largest in the world as measured by gross domestic product (GDP). The country has bounced back quickly from the worldwide recession, expanding at an annual rate of 3.6 percent in 2010, with unemployment declining to its lowest rate since 1992. A substantial portion of the country’s economy is made up of small companies that have a history of dominating highly specialized industry sectors such as machine tools, auto parts, printing presses, and electrical equipment. Many of these companies are significant exporters, allowing Germany to maintain its share of world trade over the past decade. The rapidly growing countries of Asia comprise Germany’s second-largest export market.
“The German economy has rebounded quite strongly from the global economic downturn and appears well positioned to continue to expand,” said Jan van Eck, principal at Van Eck Global. “With its history of innovation and niche market strengths, the country’s small-cap sector may continue to benefit from strong export-driven demand as well as domestic consumption. Our new ETF gives investors a focused vehicle for gaining exposure to this vibrant segment of the German economy.”
Source: ETFWorld – Van Eck Global
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