A new exchange traded fund (ETF) provider is on the scene with the industry’s newest emerging markets fund. How it’s different: it tracks the FTSE Emerging Markets Index, opening the door for more diversification in the popular area. It also comes with some appealing promotional pricing.

Old Mutual’s GlobalShares FTSE Emerging Markets Fund (NYSEArca: GSR) begins trading today.The ETF offers temporary zero fee, zero cost operating expense cap. The operating expenses will be capped until Jan. 31, 2010, or when the fund’s assets equal or exceed $1 billion, whichever comes first.

The difference between GSR and other broad emerging market ETFs is in the index construction. iShares MSCI Emerging Markets (NYSEArca: EEM) and Vanguard Emerging Markets (NYSEArca: VWO) both use MSCI, which tends to focus more on health care and technology. FTSE’s emerging markets index is weighted more toward oil, gas and telecommunications.

GSR’s top country weightings include Brazil (19%), China (18.9%), Taiwan (12.2%) and India (11.3%). Other countries making an appearance include Turkey, Thailand, Peru, Pakistan, Philippines, Colombia, Egypt and Hungary. The fund’s expense ratio is 0.39%.

Sector allocations include financials (26.9%), basic materials (14.4%), Oil and gas (17%) and industrials (9.7%).

Old Mutual is the only ETF provider in the United States licensed to use the FTSE indexes. There are four other funds in registration, including an all-world ETF, an all-world ex-U.S. and a developed markets ex-U.S. fund.

For full disclosure, Tom Lydon’s clients own shares of VWO and EEM.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.