Market Vectors launches small cap ETF

The Market Vectors Small Cap Dividend Payers ETF (MVS) includes liquid ASX listed companies, and only those that paid their most recent dividend, a statement issued by the firm said.

Van Eck Global Australia managing director Arian Neiron said: “MVS gives investors an instant portfolio of dividend paying small company stocks via a single trade on the ASX.”

“For investors seeking to benefit from the growth potential of small companies while being rewarded with dividends and franking credits, MVS provides an ideal portfolio solution.

“This ETF will have broad appeal for investors looking for a liquid, transparent and diversified small company portfolio with one of the lowest management fees among both active and passive strategies in the market,” he said.

The MVS seeks to reduce risk by focusing on only the most liquid stocks, the statement said.

The minimum number of holdings for the ETF is 25, with an eight per cent maximum weighting for each individual stock.

The top five companies by weighting, according to the statement, are Magellan Financial Group, IOOF, Perpetual, Qube, and Orora.

“We are delighted to announce the launch of the seventh Market Vectors ETF listed on the ASX,” Mr Neiron concluded.