Global X Funds, the New York-based fund provider known for its
niche strategies, is looking to expand its reach into the emerging
markets by serving up three new ETFs that would invest exclusively
in regional consumer-focused names.
In paperwork it filed with U.S. regulators, the company detailed
plans for three funds that would track Solactive benchmarks and
invest in ADRs and GDRs of companies that produce or sell goods and
services to consumers in different emerging markets regions. The
proposed funds include:
- Global X Africa Consumer ETF
- Global X Asia Consumer ETF
- Global X Latin America Consumer ETF
On the surface, the strategies seem akin to other Global X
funds-namely the Global X Brazil Consumer ETF (NYSEArca:BRAQ) and
the Global X China Consumer ETF (NYSEArca:CHIQ)-that also offer
investors direct access to consumer-focused equities though in
The filing is timely in a sense that more and more attention is
being paid to the important role a booming middle class across the
developing world has on the region's economic growth.
Fund providers such as Emerging Global Advisors and iShares have
already jumped onto the emerging markets domestic-demand bandwagon
and have had success attracting investors.
The EGShares Emerging Markets Consumer ETF (NYSEArca:ECON), for
instance, has gathered $412 million since its inception two years
ago, while the iShares MSCI Emerging Markets Consumer Discretionary
Sector Index Fund (NYSEArca:EMDI) has gathered some $3 million in
its six-month existence.
Global X didn't provide many details on the funds as far as
their country allocation, tickers and fees.
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