Resurging Emerging Markets Spurs New ETFs
May 29, 2009

SAN DIEGO (ETFguide.com) – Don’t look now, but emerging markets have re-discovered their mojo. After declining more than 50 percent last year and leading global stocks into a freefall, emerging markets stocks now find themselves with a 35 percent year-to-date gain on average.

Broad market emerging market ETFs like the iShares MSCI Emerging Markets Index Fund (NYSEArca: EEM) and the Vanguard Emerging Markets ETF (NYSEArca: VWO) have jumped higher along with concentrated funds like the SPDR S&P BRIC 40 ETF (NYSEArca: BIK).  BIK consists of just four mega-emerging market countries (Brazil, Russia, India and China) also known as the “BRIC’s.”

Emerging markets are generally defined as countries that are in the process of maturing from an economic standpoint. Many of these countries are just beginning to respond the spread of capitalism by accommodating more capital investment and supporting their local stock markets.

Resurging emerging markets stocks has rekindled interest in ETFs following this category.

Just last week, the Emerging Global Shares Dow Jones Emerging Markets Metals & Mining Titans Index Fund (NYSE Arca: EMT) and the Emerging Global Shares Dow Jones Emerging Markets Energy Titans Index Fund (NYSE Arca: EEO) were both launched for trading.  

EMT is linked to the Dow Jones Emerging Markets Metals & Mining Titans Index which is comprised of 30 emerging markets companies within the metals and mining industry sector of the global economy. The largest country weightings of EMT are South Africa (30.86%), Brazil (23.20%) and China (16.45%).

EEO is benchmarked to the Dow Jones Emerging Markets Oil and Gas Titans Index which follows 30 global stocks in the oil, gas and energy sector. The largest country weightings of EEO are Russia (36.31%), India (18.88%) and China (16.32%).

Both ETFs charge net annual expense ratios of 0.85 percent and the funds are sponsored by Emerging Global Shares LLC.