EG Advisors Debuts Pair of Developing Markets ETFs
August 15, 2012
Emerging Global Advisors launched two equity emerging markets ETFs with a unique slant.
The EGShares Beyond BRICs ETF (NYSEARCA:BBRC) provides broad exposure to the less mature emerging market countries excluding the BRIC nations (Brazil, Russia, India and China, as well as the developed nations of Taiwan and South Korea).
The EGShares Emerging Markets Domestic Demand ETF (NYSEARCA:EMDD) focuses on five industry sectors that Emerging Global Advisors believes may be most influenced by organic growth within emerging market economies. EMDD offers exposures to consumer staples, consumer discretionary, telecom, utilities and health care companies.
“EGShares BBRC and EMDD ETFs represent alternatives to those broad benchmarks which typically reflect the most mature countries and sectors in emerging markets,” said Marten Hoekstra, CEO of Emerging Global Advisors. “BBRC and EMDD are components of what we believe is a modernized EM core portfolio and are the latest outcome of our mission to provide investors with the tools they need to get the exposures they want in emerging markets.”
BBRC follows the Indxx Beyond BRICs Index which contains 50 stocks from a universe that includes Chile, Colombia, Czech Republic, Egypt, Hungary, Indonesia, Malaysia, Morocco, Mexico, Peru, Philippines, Poland, South Africa, Thailand and Turkey.
EMDD tracks the Indxx Emerging Markets Domestic Demand Index, a free-float market capitalization weighted, 50-stock index, providing exposure to 11 countries and currencies.
With combined assets of around $100 billion, the two largest U.S. listed emerging market ETFs are the Vanguard MSCI Emerging Markets (NYSEARCA:VWO) and the iShares MSCI Emerging Markets ETF (NYSEARCA:EEM).
The net annual expense ratio for both BBRC and EEMD is 0.85%.
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