ETF Spotlight on SPDR S&P Emerging Europe (NYSEArca: GUR), part of a weekly series. Assets: $175.3 million

Holdings: The largest holdings include Gazprom, 18.1%; Lukoil Oil Company, 9.6%; Rosnett, 5.8%; and Sherbank Rossii, 5.2%.

Objective

The fund tracks the S&P European Emerging BMI Capped Index (STBMEECQ).

What You Should Know

• The top sector allocations in the fund are energy, 45.4%; financials, 22.9%; materials, 11.5% and telecommunications, 8.9%.
• The top countries in the fund are Russia, 65.2%; Turkey, 13.4%; Poland, 11.5%; Hungary, 5.3%; and the Czech Republic, 4.1%.
• The expense ratio is 0.59%.

The Latest News

• According to the World Bank, the post-crisis environment in Russia provided the necessary catalyst for reforms when it comes to the country’s structural constraints and weak domestic demand, writes Gleb Bryanski for Reuters. Without reforms, the World Bank believes Russia’s growth will remain sluggish. (Ways to play Russia’s recovery).
• The Turkish economy was constrained by exports and investments, which dropped 8.5% and 17.6% respectively, as well as a 5.3% decline in private consumption. The banking sector is well-capitalized but loan growth is decelerating, which could slow the recovery of private consumption and investment. High requirements for public sector borrowing may further limit credit for the private sector.
• The effects of the global economic crisis could be felt in Eastern Europe for some time, says one official from the European Bank for Reconstruction and Development (EBRD).
• The official notes that recovery may move faster in some areas than others; in Slovakia and the Czech Republic, improvements may be seen sooner rather than later.

For more stories about Eastern European economies, visit our Eastern Europe category.

Tags: Eastern Europe, Emerging Markets, ETF 101, ETF Spotlight, Global ETFs, GUR