Van Eck Global has launched the Market Vectors Oil Refiners ETF (NYSE Arca: CRAK), the first US-listed ETF to offer pure-play exposure to global oil refiners. CRAK seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Market Vectors Global Oil Refiners Index (ticker: MVCRAKTR). To be included in the index, companies must generate at least 50% of their revenues from crude oil refining and meet certain size and liquidity requirements.
“The profitability of refiners is generally influenced by the spread between the cost of crude oil and the prices at which refined products can be sold, commonly known as crack spreads,” said Brandon Rakszawski, product manager at Van Eck Global. “Oil refiners have tended to react differently to the price of oil compared to other energy sector companies. Historically, the return profile is differentiated from other segments of the sector, a trend that has persisted year-to-date.”
CRAK joins Van Eck Global’s family of energy-focused ETFs, which includes Market Vectors Oil Services ETF (NYSE Arca: OIH), Market Vectors Unconventional Oil & Gas ETF (NYSE Arca: FRAK), and others.
Van Eck Global, a money manager founded in 1955, has offices around the world and managed approximately $31.1 billion in investor assets as of June 30, 2015.