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First Quarter Performance of Treasuries Unlikely to Be Repeated, Says Market Vectors’ Fran Rodilosso

U.S. Treasury debt was something of a surprise performance winner in the first three-and-a-half months of 2014, beating U.S. equities, a performance investors should not necessarily count on being repeated, according to Fran Rodilosso, fixed income portfolio manager for Market Vectors ETFs.

“I see the move in U.S. Treasuries more as short-term rally within the longer-term context of interest rate normalization,” said Rodilosso. “It was also helped along by an unusually harsh winter, which depressed economic activity. But, the Fed has begun to exit a period of extraordinarily easy monetary policy. However, the path to the door is certainly not well lit, so data will determine the timing, or whether we end up taking more steps backward at some point.”

With this in mind, the Market Vectors ETFs fixed income portfolio manager suggests that longer-term investors may wish to reduce exposure to U.S. interest rates, while avoiding potentially overreaching for yield. He notes a benign credit environment does not mean corporate bonds are cheap. “I believe there is ample access to capital markets for both high-grade and high-yield issuers; liquidity among borrowers is generally strong and default rates are consequentially low, but valuations in the U.S. high-yield market reflect that good news.”

“Investors may want to consider reducing high-yield exposure to go into higher-quality U.S. credit with shorter duration, even floating rate notes,” Rodilosso said. “Emerging markets and municipal bonds both were underperformers last year. Despite a generally strong performance in those asset classes so far in 2014, the possibility of yield pickup versus U.S. credit appears to me to be compelling. So, in my opinion, you can give up some yield potential in spots, and possibly add some in others, but a key advantage will be diversifying your exposure to what are perceived as risky assets.”

Mr. Rodilosso has over 20 years of experience trading and managing risk in fixed income investment strategies, including more than 17 years covering emerging markets. Among the Market Vectors ETFs under his watch are Investment Grade Floating Rate ETF (NYSE Arca: FLTR®), Treasury-Hedged High Yield Bond ETF (NYSE Arca: THHYTM), Emerging Markets Aggregate Bond ETF (NYSE Arca: EMAGTM), Emerging Markets High Yield Bond ETF (NYSE Arca: HYEM®),Emerging Markets Local Currency Bond ETF (NYSE Arca: EMLC®), Fallen Angel High Yield Bond ETF (NYSE Arca: ANGL®), International High Yield Bond ETF (NYSE Arca: IHY®), and Renminbi Bond ETF (NYSE Arca: CHLC®). As of March 31, 2014, the total assets for these ETFs amounted to approximately $1.4 billion.

Please note that the information herein represents the opinion of the portfolio manager and these opinions may change at any time and from time to time. Not intended to be a forecast of future events, a guarantee of future results or investment advice. Current market conditions may not continue. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. ©2014 Van Eck Global.

About Market Vectors ETFs

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. The Market Vectors family totaled $23.4 billion in assets under management, as of March 31, 2014, making it one of the largest ETF families in the U.S. and worldwide.

Market Vectors ETFs are sponsored by Van Eck Global. Founded in 1955, Van Eck Global was among the first U.S. money managers helping investors achieve greater diversification through global investing. Today, the firm continues this tradition by offering innovative, actively managed investment choices in hard assets, emerging markets, precious metals including gold, and other alternative asset classes.

There are risks involved with investing in ETFs, including possible loss of money. Shares are not actively managed and are subject to risks similar to those of stocks, including those regarding short selling and margin maintenance requirements. Ordinary brokerage commissions apply. Debt securities carry interest rate and credit risk. Interest rate risk refers to the risk that bond prices generally fall as interest rates rise and vice versa. Credit risk is the risk of loss on an investment due to the deterioration of an issuer's financial health. The Funds' underlying securities may be subject to call risk, which may result in the Funds having to reinvest the proceeds at lower interest rates, resulting in a decline in the Funds' income.

The Funds may be subject to credit risk, interest rate risk and a greater risk of loss of income and principal than those holding higher rated securities. As the Funds may invest in securities denominated in foreign currencies and some of the income received by the Funds may be in foreign currency, changes in currency exchange rates may negatively impact the Funds’ returns. Investments in emerging markets securities are subject to elevated risks which include, among others, expropriation, confiscatory taxation, issues with repatriation of investment income, limitations of foreign ownership, political instability, armed conflict, and social instability. The Funds may loan their securities, which may subject them to additional credit and counterparty risk. The Funds may be subject to risks associated with investing in high-yield securities; which include a greater risk of loss of income and principal than funds holding higher-rated securities, as well as concentration risk; credit risk; hedging risk; interest rate risk; and short sale risk. Investors should be willing to accept a high degree of volatility and the potential of significant loss. The Funds may loan their securities, which may subject them to additional credit and counterparty risk. For a more complete description of these and other risks, please refer to the Funds’ prospectus and summary prospectus.

The “net asset value” (NAV) of an ETF is determined at the close of each business day, and represents the dollar value of one share of the ETF; it is calculated by taking the total assets of an ETF subtracting total liabilities, and dividing by the total number of shares outstanding. The NAV is not necessarily the same as an ETF's intraday trading value. Investors should not expect to buy or sell shares at NAV. Total returns are based upon closing “market price” (price) of the ETF on the dates listed.

Fund shares are not individually redeemable and will be issued and redeemed at their NAV only through certain authorized broker-dealers in large, specified blocks of shares called “creation units” and otherwise can be bought and sold only through exchange trading. Creation units are issued and redeemed principally in kind. Shares may trade at a premium or discount to their NAV in the secondary market.

Diversification does not assure a profit nor does it protect against a loss.

Investing involves substantial risk and high volatility, including possible loss of principal. Bonds and bond funds, in general, will decrease in value as interest rates rise. An investor should consider the investment objective, risks, charges and expenses of a Fund carefully before investing. To obtain a prospectus and summary prospectus, which contain this and other information, call 888.MKT.VCTR or visit marketvectorsetfs.com. Please read the prospectus and summary prospectus carefully before investing.

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335 Madison Avenue, New York, NY 1001

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