The Global X Next Emerging & Frontier ETF (NYSE Arca: EMFM) debuted today as a new spin on emerging and frontier markets ETFs investing.
The new ETF is comprised of 35 countries and 200 holdings, and specifically excluded from the fund are the BRICs, South Korea and Taiwan. With exclusion of the BRIC nations of Brazil, Russia, India and China, EMFM adds to the list of ETFs that are plays on the “beyond BRICs” theme. [Beyond BRICs ETF Moves to New Index]
Like the rival EGShares Beyond BRICs (NYSEArca: BBRC), EMFM charges 0.58% per year.
“The Next Emerging & Frontier ETF offers exposure to specific economies that we expect will experience a long period of high growth rates, similar to what the BRIC nations experienced over the past 15 years,” said Bruno del Ama, chief executive officer of Global X Funds, in a statement.
“Investing in emerging markets continues to be an important strategy for portfolio diversification and growth, but investors must now look beyond more mature economies to regions with accelerating growth rates and expanding populations. This is because ‘traditional’ emerging market investments have begun to slow down and are too closely correlated with developed markets.”
EMFM stands as a play on the next generation of emerging markets, countries such as the Philippines, Chile and Colombia.