Emerging Global Advisors, the ETF firm focused solely on
developing economies, filed regulatory paperwork to market two more
ETFs, one that it calls âBeyond BRICs,â and the other seeking
exposure to domestic consumer demand in the developing world in
Both the EGShares Beyond BRICs ETF and the EGShares Emerging
Markets Domestic Demand ETF are designed to focus on companies that
âstand to benefit significantly from the strong industrial and
consumption growth occurring in middle income nations around the
globe,â the filing said.
They will each have net annual expense ratios of 0.85 percent,
which includes a one-year fee waiver agreement, the filing with the
Securities and Exchange Commission said. The company didnât
disclose tickers in the filing.
Emerging Global has had mixed success with its 19 ETFs. Its most
successful strategy, the consumer-demand-focused EGShares DJ
Emerging Markets Consumer Titans ETF (NYSEArca:ECON), has gathered
nearly $300 million and represents roughly half of the companyâs
total assets under management.
Emerging Global isnât alone in the quest to slice and dice
emerging market exposure at a time when investors are looking for
relatively strong growth prospects given the sluggish growth in
debt-laden developed nations. The so-called BRIC
countriesâBrazil, Russia, India and Chinâwere the first to gain
popularity among investors.
In 2011, investors poured nearly $24 billion into international
equity ETFs, representing almost 10 percent of total ETF inflows
for the year, according to data compiled by IndexUniverse.
The âBeyond BRICâ strategy will seek to fully replicate the
INDXX Beyond BRICs Index, a market-capitalization-weighted index
comprising the 50 leading companies in the emerging market space
with the exception of BRIC.
It will invest in equities, including American depositary
receipts of small- and midcap companies with at least $100 million
in market capitalization.
Similarly, the âdomestic demandâ ETF will track the INDXX
Emerging Markets Domestic Demand Index, which is designed to tap
into a representative sample of 50 emerging market companies deemed
to provide greater exposure to local markets than the MSCI Emerging
Emerging Globalâs domestic demand fund will focus on a select
group of sectors such as consumer goods, consumer services, health
care, telecommunications and utilities, the filing said.
Neither fund will âseek temporary defensive positions when
equity markets decline or appear to be overvalued,â the filing
Emerging Global is the 25
-largest ETF provider in the U.S., with about $572 million of
assets under management, according to data compiled by
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