Van Eck Launches Leveraged & Inverse Euro ETNs
May 8, 2008

SAN DIEGO - (ETFguide.com) – Van Eck is following the trend of leveraged and inverse ETFs. The Market Vectors double leveraged long and short Euro ETNs are the first inverse and leveraged currency portfolios in the ETF market place.

The Market Vectors- Double Long Euro ETN (Ticker: URR) seeks to replicate two-times leveraged long exposure to the euro, plus a short-term deposit.  URR tracks the performance of the Double Long Euro Index. The index will finance its leveraged currency exposure by using forward contracts in U.S. dollars.

The Market Vectors- Double Short Euro ETN (Ticker: DRR) seeks to replicate two-times leveraged short exposure to the euro, plus a short-term deposit.  DRR tracks the performance of the Double Short Euro Index. The Index is designed to reflect borrowing euros and selling them short for U.S. dollars, investing the U.S. dollars for one day and converting them back into euros to repay the lending activity.

Both ETNs are based on total return indexes. This means that the ETNs' value will include daily interest based on overnight federal funds open rates which will be counted as part of the notes' return when investors redeem shares.

These Market Vectors Currency Exchange Traded Notes are issued by Morgan Stanley with Van Eck Global as the exclusive marketer. The benchmark currency indices underlying the notes were developed by Morgan Stanley and are calculated and maintained by Standard & Poor’s. Their expense ratios are expected to be 0.65%.

The initial tax advantage currency ETNs had over currency ETFs was affected by an adverse tax ruling in December, 2007. >> click here for more details

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