Market Vectors Fixed Income ETFs Achieve NAIC Designations [Manufacturing Close – Up]

Six Market Vectors fixed income exchange-traded funds (ETFs) have received risk-based capital ratings from the Securities Valuation Office (SVO) of the National Association of Insurance Commissioners (NAIC), it was announced.

Ratings assess credit quality of fixed income securities and can allow for favorable risk-based capital treatment when a fund is added to portfolios of state regulated insurance companies.

According to a release, SVO ratings range from 1 to 6, with 1 being highest in terms of credit quality. Below are the NAIC rating designations for the Market Vectors ETFs that have been rated: Market Vectors ETF Ticker NAIC Designation

Investment Grade Floating Rate Note ETF

FLTR 1

Intermediate Municipal Index ETF

ITM 1

Emerging Markets Local Currency Bond ETF

EMLC 2

International High Yield Bond ETF

IHY 3

Emerging Markets High Yield Bond ETF

HYEM 3

High Yield Municipal Index ETF

HYD 4

"We're very pleased to have received SVO designations for six of our funds, as these ratings help provide state regulated insurance companies with guidance as to the credit quality of a fund's underlying holdings," said Susan Marino, Senior Vice President and Director of National Accounts at Van Eck Global. "We're pleased to offer insurance companies these Market Vectors ETF solutions as they take a closer look at opportunities to expand their investment choices."

"Insurance companies are increasingly looking to use ETFs based on their flexibility, transparency and low-cost structure," said Bill Best, Managing Director, Institutional Sales and Investor Relations at Van Eck Global. "NAIC ratings are a critical tool allowing insurance general account managers to utilize this fast growing and dynamic part of the market while also efficiently managing their risk-based capital requirements."

NAIC, the U.S. standard-setting and regulatory support organization, was created and is governed by the chief insurance regulators of the 50 states, the District of Columbia and five U.S. territories. The SVO is responsible for day-to-day credit quality assessment and valuation of securities owned by state regulated insurance companies. The assignment of an NAIC designation allows a fixed income ETF to be reported as a bond, and therefore receive a more favorable risk-based capital treatment.

Market Vectors exchange-traded products have been offered since 2006 and span many asset classes, including equities, fixed income (municipal and international bonds) and currency markets.

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