Emerging Global Advisors (EGA) has launched an ETF offering exposure to the largest emerging markets companies in the financial services sector.
The Dow Jones Emerging Markets Financial Titans Index fund, listed on NYSE Arca, tracks the performance of the Dow Jones Emerging Markets Financial Titans 30 index.
The benchmark comprises 30 of the largest emerging markets financial companies in banking, life insurance, non-life insurance, real estate investment and financial services.
The companies selected come from 10 different countries, with the top five country weightings consisting of China, Brazil, India, South Africa and Malaysia respectively.
EGA chief executive officer Robert Holderith says the companies in the financial services sector will prove to have an imperative role in driving the growth in these economies, through their ability to provide liquidity.
He adds: "Our funds are designed to provide both currency and country diversification within emerging markets while giving investors exposure to many of the most dynamic sectors."
Holderith says that energy and telecommunications will be the next sectors to thrive and as a result, EGA has two funds based on these underlyings in the pipeline.
The latest fund is the fourth to be introduced by EGA. The company has registered a total of 12 emerging markets ETFs, including 10 sector-based funds, one tracking emerging markets metals and mining companies, and a broad based composite fund.
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