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CMCAX: The Constant Maturity Concept, Daniel Reiss


The Constant Maturity Concept diversifies across commodity components and maturities, and can efficiently adapt to the changing economic environment. Constant maturity attempts to prevent slippage into the steeper part of the curve, or the portion of the curve typically associated with higher roll losses. The constant maturity concept is achieved by a constant rolling process; this not only gives more continuous exposure to the asset class, but also seeks to minimize exposure to the negative effects of roll yield, making the constant maturity commodity index or CMCI more representative of the underlying market price movements.


With traditional commodities indices, a continuing contango situation can lead to heavy roll losses, represented by the blue bar. Using the constant maturity principle, the CMCI may significantly reduce roll losses in a typical contango environment. The roll losses are represented by the blue bar.


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IMPORTANT DISCLOSURE

< p>Please note that Van Eck offers a mutual fund that is benchmarked to the UBS Bloomberg Constant Maturity Commodity Index.


< p> UBS and Bloomberg own or exclusively license, solely or jointly as agreed between them all proprietary rights with respect to the Index. In no way do UBS or Bloomberg sponsor or endorse, nor are they otherwise involved in the issuance and offering of the Product nor do either of them make any representation or warranty, express or implied, to the holders of the Product or any member of the public regarding the advisability of investing in the Product or commodities generally or in futures particularly, or as to results to be obtained from the use of the Index or from the Product.

< br/> < p>You can lose money by investing in the Fund. Any investment in the Fund should be part of an overall investment program, not a complete program. Commodities are assets that have tangible properties, such as oil, metals, and agriculture. Commodities and commodity-linked derivatives may be affected by overall market movements and other factors that affect the value of a particular industry or commodity such as weather, disease, embargoes or political or regulatory developments. The value of a commodity-linked derivative is generally based on price movements of a commodity, a commodity futures contract, a commodity index or other economic variables based on the commodity markets. Derivatives use leverage, which may exaggerate a loss. The Fund is subject to the risks associated with its investments in commodity-linked derivatives, risks of investing in wholly owned subsidiary, risk of tracking error, risks of aggressive investment techniques, leverage risk, derivatives risks, counterparty risks, non-diversification risk, credit risk, concentration risk and market risk. The use of commodity-linked derivatives such as swaps, commodity-linked structured notes and futures entails substantial risks, including risk of loss of a significant portion of their principal value, lack of a secondary market, increased volatility, correlation risk, liquidity risk, interest-rate risk, market risk, credit risk, valuation risk and tax risk. Gains and losses from speculative positions in derivatives may be much greater than the derivative’s cost. At any time, the risk of loss of any individual security held by the Fund could be significantly higher than 50% of the security’s value. Investment in commodity markets may not be suitable for all investors. The Fund’s investment in commodity-linked derivative instruments may subject the fund to greater volatility than investment in traditional securities. For a description of these and other risk considerations, please refer to the Fund’s prospectus and summary prospectus, , which should be read carefully before you invest. Again, the Fund offers investors exposure to the broad commodity markets, currently, by investing in commodity-linked swaps. Please call 800.826.2333 or visit vaneck.com for performance information current to the more recent month.


Investing involves risk, including possible loss of principal. An investor should consider investment objectives, risks, charges and expenses of the investment company carefully before investing. The prospectus and summary prospectus contain this and other information. Please read the prospectus and summary prospectus carefully before investing.


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