It may have seemed like benign news when an exchange traded fund swaps indices. After all, it is not an usual occurrence.
On Monday, Emerging Global Advisors, the New York-based exchange traded funds issuer known for its all-emerging markets lineup, unveiled index changes on three of its ETFs. Two of those funds, the EGShares Low Volatility Emerging Markets Dividend ETF (NYSEArca: HILO) and the EGShares Brazil Infrastructure Index Fund (NYSEArca: BRXX), are now tracking FTSE indices. [EGShares Swaps Indices on Three ETFs]
The news is further confirmation of FTSE Group’s growing presence in the North American ETF market. FTSE Group, a unit of the London Stock Exchange Group, has seen 15 ETFs transition to its indices in just the past 18 months.
HILO and BRXX, , which represent US $138.6 million in assets under management (AUM), are the 14th and 15th to transition to FTSE in the last 18 months and add to FTSE’s significant North American business, with 111 ETFs tracking FTSE benchmarks. Globally, more than US $189 billion of ETF AUM are benchmarked to FTSE indices as of December 2013, according to a statement issued by FTSE.
FTSE is also the index provider for an array of well-known ETFs including the Vanguard FTSE Emerging Markets ETF (NYSEArca: VWO), the largest emerging markets ETF by assets. The iShares China Large-Cap ETF (NYSEArca: FXI), the largest and most heavily traded China ETF, also tracks a FTSE index.
As of mid-August 2013, 11 ETF firms in the United States and Canada offered 102 products tracking FTSE’s equity, fixed income, real estate, yield and alternative weighted indices, the benchmark provider said. Globally, FTSE-linked ETFs are offered by nine of the top ten issuers. [FTSE Rising in North America]