Global X Introduces Central Asia, Nigeria ETFs
April 4, 2013
Global X Funds launched the Global X Nigeria Index ETF (NYSEARCA:NGE) and the Global X Central Asia & Mongolia Index ETF (NYSEARCA:AZIA).
NGE owns the largest and most liquid companies in Nigeria as well as companies that derive a significant amount of revenues from the country. The fund owns 28 stocks and charges annual net expenses of 0.68%.
Goldman Sachs identified Nigeria in its “Next 11” economies, which are defined as a group of large, fast-growing markets that are expected to be an important source of growth and opportunity in the future. According to the World Bank, Nigeria is the most populous country in Africa with over 160 million people and approximately 63% of Nigeria’s population is under the age of 25.
AZIA invests in foreign listings of Central Asian companies along with companies that derive significant revenues from the region. The top three countries in terms of equity exposure are Kazakhstan (46%), Russia (14%), and Mongolia (13.69%).
The Economist Intelligence Unit predicted that Mongolia will grow its GDP by nearly 14% this year, the second fastest growing country on the globe.
“The launch of NGE and AZIA have expanded our offerings to include frontier markets— investment themes we stand behind due to their long-term potential and lower correlation with other markets,” said Bruno del Ama, chief executive officer of Global X Funds.
Global X Funds is a New York-based provider of ETFs with $1.8 billion in managed assets at the end of March 2013.
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