Emerging Global Advisors has launched an emerging markets sector ETF, which tracks a composite index comprising a range of sectors across emerging market countries.
The Emerging Global Shares Dow Jones Emerging Market Titans Composite Index Fund replicates the respective index which consists of the top 10 ranked stocks from each of the 10 Dow Jones Emerging Markets Sector Titan indices.
These are based on basic materials, consumer goods, consumer services, financials, healthcare, industrials, oil and gas, technology, utilities and telecommunications.
The indices cover 15 emerging market countries, including China Offshore, Brazil, Egypt and Slovenia. The top five countries represented in the index at present are China Offshore at 21%, Brazil at 20%, India at 18%, Russia at 16% and Mexico at 9%.
Emerging Global Advisors says that exposure to a diversified range of countries mitigates single-country economic and political risk, which is an important issue for many emerging markets investors.
The latest ETF, which has an expense ratio of 75 basis points and is listed on the NYSE Arca platform, is the third sector-based ETF released by Emerging Global Advisors.
The ETF provider plans to introduce a total of 10 sector-based emerging market ETFs based on market cap Dow Jones indices, along with funds based on a basic resources index and additional composites of multiple indices.
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till