Van Eck Global has come up with a new strategy for it’s latest exchange traded fund (ETF) filing. This ETF differs from their usual commodity plays. The new fund offers exposure to the growth in emerging markets through small-cap equities. [Potential Opportunities In Emerging Markets ETFs.]
Oliver Ludwig for Index Universe reports the new fund is the Market Vectors GDP Emerging Markets Small-Cap Equity ETF and it will be based on the Market Vectors GDP – Emerging Markets Small-Cap Equity Index. Investors are taking a liking to the growth potential taking place in the developing world, a trend that seems to be replacing developed markets domination.
The benchmark weights its constituents by the size of a given country’s gross domestic product (GDP) relative to the GDPs of the other countries represented in the index. Countries included in the index, as well as tickers and expenses have not been disclosed yet. [Can Emerging Market ETFs Recover?]
Tisha Guerrero contributed to this article.
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