State Street Global Advisors plans to market four emerging
markets ETFs that are both small-cap versions of broad emerging
market funds the company already offers, as well as subsets of its
three-year-old SPDR S&P Emerging Markets Small Cap ETF
SSgA is already behind a roster of emerging markets funds that
include the SPDR S&P Emerging Asia Pacific (NYSEArca:GMF), a
Europe fund, (NYSEArca:GUR) and a Latin America ETF,
The company's broader small-cap emerging markets strategy fund,
EWX, tracks the under-$2 billion universe of emerging market
securities through the S&P BMI Global Equity Index. EWX has
gathered nearly $615 million in assets and costs 0.65 percent.
The new regional lineup would meet growing competition in the
growing world of emerging market investments. Small-cap funds are
being touted as a way for investors to gain access to domestic
economies. The new ETFs will compete with funds such as Van Eck's
$27 million Market Vectors Latin America Small-Cap ETF
(NYSEArca:LATM), as well as country-specific funds from sponsors
such as IndexIQ and iShares.
The lineup, detailed in paperwork SSgA filed with U.S.
- SPDR S&P Small Cap Emerging Asia Pacific ETF
- SPDR S&P Small Cap Emerging Europe ETF
- SPDR S&P Small Cap Emerging Latin America ETF
- SPDR S&P Small Cap Emerging Middle East & Africa
Each fund will use sampling strategies to track their respective
regional S&P float-adjusted market-capitalization-weighted
indexes. Each of those benchmarks is a subset of the S&P BMI
Global Equity Index, a comprehensive float-adjusted, market-
cap-weighted rules-based benchmark.
The regional small-cap indexes focus on publicly listed
companies with total market values ranging from $100 million to $2
billion. Each individual stock is capped at 25 percent of the
basket, and the top five securities can't represent more than 50
percent of the mix.
The company didn't specify fees or tickers of the planned
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