An emerging market ETF that focuses on the consumer sector has established an impressive three-year track record that could attract more investors and financial advisors.
EGShares Emerging Markets Consumer ETF (NYSEArca: ECON) has outperformed the MSCI Emerging Markets Index since the fund launched in September 2010.
Through the end of June, ECON had posted a cumulative return of 29.3% since inception, compared with a loss of 2.5% for the MSCI Emerging Markets Index, according to Emerging Global Advisors, the ETF’s manager.
Emerging market domestic spending is expected to hit $30 trillion a year by 2025. [Emerging Market ETF Sees Rare Inflows]
“The sectors that benefit most from emerging market demographics trends tend to be underrepresented in conventional, broad-based emerging market benchmark indices, which are usually dominated by export sectors and banks,” said Marten Hoekstra, chief executive of Emerging Global Advisors. “Emerging market consumer demand represents a key theme for investors and ECON is the largest and longest standing ETF to obtain that exposure.”