10 Sectors, 15 Countries; New Emerging Markets ETF Lands | ETF Trends

Emerging Global Advisors has unveiled a new exchange traded fund (ETF) that focuses on emerging markets, expanding their lineup of funds that target specific sectors in developing nations.

Emerging Global Shares Dow Jones Emerging Markets Titans Composite ETF (EEG) will be the provider’s latest addition to the ETF marketplace. The new fund is based on the Dow Jones Emerging Markets Sector Titans Composite 100 Index. It  includes 100 companies across 10 industries and 15 emerging markets.

This ETF marks the third offering from the new provider. The first two funds launched in late May:

  • EGS Emerging Markets Energy Fund (EEO) tracks a basket of 30 of the largest emerging market companies within the oil and gas industry in 13 countries. The top country weightings are Russia (36.3%), India (18.9%), China (16.8%) and Brazil (9.5%).
  • EGS Emerging Markets Metals & Mining Fund (EMT) tracks a basket of the 30 largest emerging market companies in the metals and mining sectors within nine countries. The top country weightings are South Africa (30.9%), Brazil (23.2%), China (16.5%) and Russia (13.2%).

Emerging Global Advisors Chief Executive Officer Bob Holderith says that so far, they’re pleased with how the funds are doing. “We always want more, but we’re comfortable with where we are,” he says. EMT and EEO have attracted about $14 million in assets in their slightly more than two months on the market.

The new fund does have a heavy weighting in BRIC countries (Brazil, Russia, India and China) because, as Holderith points out, much of the market cap in emerging markets is centered in those four countries. In addition to that, the fund has weightings in some other promising emerging markets, including Mexico and South Africa.

Excluded from the index are countries such as Taiwan, Korea and Israel, which are now commonly viewed as developed. “If you’re looking for an emerging market pure-play, you would not want those three,” Holderith says.