The EGShares ETF has a significant 33.8% weight to financials sector stocks, followed by telecom services at 18.9% and consumer staples at 12.2%. The fund also has a large tilt toward Mexico at 16.6%, South Africa at 16.1% and Malaysia 12.3%. Additionally, the ETF includes exposure to Nigeria, Qatar, United Arab Emirates and Vietnam, which are classified as frontier markets. South Korea does not make it onto the list since FTSE upgraded South Korea to developed market status due to its market size and scale of economic development.
EMBB, on the other hand, tries to reflect the performance of the MSCI EM Beyond BRIC Index, which is comprised of emerging market stocks and excludes issuers domiciled in BRIC economies. The ETF has a 0.55% expense ratio.
State Street Global Advisors’ SPDR beyond BRIC ETF includes a more diversified 258 holdings, compared to BBRC’s 90 components. The financial stocks also make up the largest sector exposure at 27.2%, followed by information technology 13.3% and materials 10.8%.
Unlike BBRC, EMBB includes exposure to South Korea and Taiwan, which are the two largest country weights at 15.3% and 15.2%, respectively, followed by South Africa 14.7%, Mexico 13.4% and Malaysia 9.7%. EMBB also tries to cap country exposure to 15%.
For more information on developing countries, visit our emerging markets category.