Emerging market assets provide investors with the opportunity to capture the high growth potential of a developing economy. In an attempt to set itself apart from the competition, Emerging Global Advisors launched two new exchange traded funds that follow emerging countries in their early stages of economic progression.
According to a press release, the EGShares Beyond BRICs ETF (NYSEArca: BBRC) and the EGShares Emerging Markets Domestic Demand ETF (EMDD) will provide investors access to less mature emerging market countries and sectors.
Over 90% of emerging market equity ETF assets track the MSCI Emerging Market Index or other similar indices that are dominated by countries further along in their economic development.
“EGShares BBRC and EMDD ETFs represent alternatives to those broad benchmarks which typically reflect the most mature countries and sectors in emerging markets, Marten Hoekstra, CEO of Emerging Global Advisors, said in the press release. “To attempt to meet the need for exposure to less mature countries, we created the EGShares Beyond BRICs ETF. To meet the need for exposure to less mature sectors, we created the EGShares Domestic Demand ETF.”
BBRC country allocations include: South Africa 18.7, Mexico 18.5%, Malaysia 15.2%, Thailand 13.9%, Indonesia 12.1%, Turkey 6.5%, Chile 5.0%, Colombia 4.0%, Poland 3.4%, Peru 1.7% and Philippines 1.0%. The ETF has a 0.85% expense ratio.