“The fact is that some developed market companies do offer meaningful exposure to emerging market revenues—but only a select few,” said Robert Holderith, President of EGA, in the statement. “While research shows that only 14% of the S&P 500’s aggregate revenues come from emerging markets, companies in the EGAI Developed Markets Blue Chip EM Access Index on average earn 47% of their revenue from emerging market.” [Getting Selective With Emerging Markets]
If the current rate of emerging markets revenue growth is sustained, those markets could be contributing 50% of consolidated revenue to BCHP member firms in two years and 55% in three years, according to EGShares.
As of April 22, the EGAI Developed Markets Blue Chip EM Access Index had a price-to-book ratio of 5.55 and a dividend yield of 2.56%. BCHP has an annual expense ratio of 0.6%.
BCHP Country Weights
Data Courtesy: EGShares