Emerging Global Advisors today announced the launch of the EGShares Beyond BRICs and Emerging Markets Domestic Demand ETFs, exchange traded funds seeking less mature emerging market country or sector exposures.
With more than 90% of all EM equity ETF assets following the MSCI Emerging Markets Index and other catalogue indexes,1 many core portfolios are dominated by countries and sectors that are furthest along the economic development path that progresses from frontier to developed market status. Investors seeking opportunities that are earlier on this development path can attempt to tailor core portfolios to include greater exposures to less mature emerging market countries through the EGShares Beyond BRICs ETF, and less mature emerging market sectors through the EGShares Emerging Markets Domestic Demand ETF.
“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. “To attempt to meet the need for exposures to less mature countries, we created the EGShares Beyond BRICs ETF. To attempt to meet the need for exposures to less mature sectors, we created the EGShares Emerging Markets Domestic Demand ETF. 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.”
EGShares Beyond BRICs ETF (BBRC) provides broad exposure to the less mature emerging market countries outside of the BRIC nations (Brazil, Russia, India and China). BBRC tracks the Indxx Beyond BRICs Index, a free-float market capitalization weighted index of 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. The ETF trades on NYSE Arca under the ticker symbol BBRC.
EGShares Emerging Markets Domestic Demand ETF (EMDD) includes five 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. 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. The ETF trades on NYSE Arca under the ticker symbol EMDD.
Both BBRC and EMDD are passively managed and currently do not use options, swaps or other derivatives in their portfolios.
EGShares is the exchange traded fund (ETF) offering of Emerging Global Advisors LLC (EGA), an asset management company focused exclusively on providing investors with the tools they need to get the exposures they want in emerging markets and to use similar investment strategies in emerging markets as they do in developed markets. EGShares enables investors to allocate not merely to, but also within emerging markets through sector, thematic and core holding ETFs. For more information please visit www.egshares.com.
Investors should carefully consider the investment objectives, risks, charges and expenses of the funds before investing. To obtain a prospectus containing this and other important information, please call (888) 800-4EGS (4347) or visit www.egshares.com to view or download a prospectus online. Read the prospectus carefully before you invest.
These funds are new and therefore do not have performance histories of their own. You cannot invest directly in an index.
Emerging market investments involve risk of capital loss from fluctuation in currency values, differences in accepted accounting principles, economic or political instability or increased volatility and lower trading volume. The funds are non-diversified and, as a result, may have greater volatility than diversified funds. The funds’ returns may not match the returns of the underlying indexes. Investments in small- and mid-cap companies are generally more volatile.
Distributed by ALPS Distributors, Inc.
EGS001022. Expires 6/30/13.
1 Bloomberg Data as of 6/30/12
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Bill Fallon, 212-925-6900
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