SPDR ETF Targets Small Caps in Asia
January 13, 2012
State Street Global Advisors (SSgA) launched the SPDR S&P Small Cap Emerging Asia Pacific ETF (NYSEArca: GMFS), which is the first emerging Asia Pacific ETF to target small cap stocks in the region.
GMFS is linked to the S&P Asia Pacific Emerging Under $2 Billion Index. This benchmark is a float-adjusted market capitalization weighted and it includes publicly listed companies with a total market capitalization between $100 million and $2 billion.
Each stock within the index is capped at a maximum of 25 percent of the index weight, and the top five stocks are capped at a maximum of 50 percent of the index weight. Some of the countries covered include China, India, Indonesia, Malaysia, Philippines, Taiwan, and Thailand. As of December 31, 2011, the Index was comprised of 1,455 securities.
“Emerging market small cap stocks are an attractive opportunity for many investors, as broad emerging market equity funds are often dominated by large cap companies that rely on developed world demand,” said James Ross, senior managing director and global head of SPDR Exchange Traded Funds at State Street Global Advisors. “In providing investors with precise access to an asset class with the potential to provide portfolio growth and diversification benefits, the SPDR S&P Small Cap Emerging Asia Pacific ETF enhances our family of emerging market SPDR ETFs, which includes the SPDR S&P Emerging Markets Small Cap ETF.”
SSgA also manages equity emerging markets ETFs that target Europe (NYSEArca: GUR), Latin America (NYSEArca: GML), and Africa/Middle East (NYSEArca: GAF).
GMFS has an annual expense ratio of 0.65%.
At the end of 2011, State Street Global manages more than $271 billion in SPDR ETF assets worldwide.