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Agrimarketing : March 2008
Phillips. "In addition, MOO includes prominent ag companies from around the world that local investors may be unaware of, plus it spreads the risk among all sectors within the industry. All that, plus the fees and expenses of an ETF like MOO can potentially be substantially less than those of a mutual fund." One individual investor, AgriMarketing, spoke with agrees. "I knew the ag sector was hot and get- ting hotter," he says. "I wanted to get my stake in it, but didn't know how ... nor did my financial advisor. Once I became familiar with MOO, it made it simple and easy. So far, it has been an excellent investment, espe- cially compared to most of the rest of my portfolio." "I first became aware of MOO," when it was brought to my attention by a fund manager," reports a VP/Investor Relations for one of the companies whose stock is included in the ETF. Asked about his reaction to it, he says, "There are good things and some challenges with an ETF like MOO. It does offer investors, who are looking to participate in the ag market, an easy and low cost way to enter. "However," he warns, "it is not a pure ag play, as I see it. Included in its portfolio are some organizations that benefit when grain prices are high, such as the crop inputs and machin- ery, but some that don't, such as the livestock and biofuels industries. So, you can have one sector of its hold- ings doing well that will push up the value, but others that could have a negative impact on MOO's returns. That said, I know there's value in being diversified." MARKETING & SALES With over 630 ETFs available to U.S. investors, and many new ones being cre- ated each month, cre- ating awareness, branding and securing the order is a daunting task for even the best of marketers. But through classic text book, time-proven techniques and, admittedly a little luck, Van Eck has succeeded in this overly contested market space. "Once we decide to offer an ETF in a particular market sector, our most important decision is identifying the right index to use," says Van Eck Sr. VP/Mktg Harvey Hirsch. "We were bullish on the ag market and have been fortunate our outlook for it has been proven correct, especially at a time when the investment community has been focusing special attention on it. MOO received considerable press coverage shortly after its launch and still does to this day. "Another factor," Hirsch says, "was breaking through the clutter with a creative and descriptive name. That's how we settled on MOO." (See "What's In A Name?") Identifying their prospective cus- tomers was also an important con- sideration. "We have four target markets," Hirsch says. They include: • Individual investors including clients of financial intermediaries that include investment advisors, wirehouse/regional brokers and financial planners, as well as self- directed investors (E-trade, Schwab, etc.); • Institutional investors including fund managers and hedge funds; • Traders including individuals and institutions who trade for short- term profits; and • Influencers including the media, bloggers, researchers, market com- mentators and others. Equipped with sales literature, solid web support and a new, unique Van Eck Global: Mutual Funds--ETFs--Insurance Funds--Separate Accounts--Alternative Investments Introducing --AGRIBUSINESS ETF (MOO) A Basic Industry with Growth Potential Driven by increasing world population as well as demand for ethanol and biodiesel. Diversified Across Five Sectors Agriproduct operations, agriculture chemicals, livestock operations, agriculture equipment and ethanol/biodiesel. A Pure Play MOO companies predominantly derive at least 50% of their revenue from agribusiness, a sector significantly underweight in most popular commodity-equity indices. Visit www.vaneck.com/moo8 or call 1.888.MKT.VCTR, ext. 708 for more information. The Fund is subject to various risks including those associated with making investments in agriculture companies such as economic forces, energy and financial markets, government policies and regulations, and environmental laws and regulations. An investor should consider investment objectives, risks, charges and expenses of the investment company carefully before investing. To obtain a prospectus, which contains this and other information, call 1.888.MKT.VCTR, ext. 708 or visit www.vaneck.com/moo8. Please read the prospectus carefully before investing. Investing involves risks, including possible loss of principal. Market Vectors-- Agribusiness ETF (MOO) is not sponsored or endorsed by Deutsche B rse AG. Van Eck Securities Corporation, Distributor | 99 Park Avenue | New York, NY 10016 Sample print ad running in investor-oriented magazines. ABOUT VAN ECK Founded in 1955 by John C. van Eck, the firm was among the first U.S. money managers helping investors achieve greater diversification through global investing. The com- pany's current senior leader- ship is com- posed of two members of the second genera- tion, Jan F. and Derek S. van Eck, and the firm's President Keith Carlson. With approximately $10 billion of assets under its management, the firm offers its products nation- wide through retail brokers, finan- cial planners and investment advisors. In addition, to its mutual funds, insurance trust funds, separate accounts and alternative investments, Van Eck offers 9 Market Vectors equity ETFs including MOO. Among its other ETF offerings are coal, environ- mental services, gaming, global alternative energy, gold miners, nuclear energy, Russia and steel. It also offers 2 municipal bond ETFs. March 2008 AgriMarketing 33 (more on page 35)
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