Emerging Global Advisors entered the ETF market by launching on the NYSE Arca the first family of emerging-market sector ETFs.
The EGS Emerging Markets Energy Fund (EEO) will track the Dow Jones Emerging Markets Oil & Gas Titans 30 Index. The index holds 30 of the largest emerging-markets companies in the oil & gas industry across 13 countries.
The EGS Emerging Markets Metals & Mining Fund (EMT) tracks the Dow Jones Emerging Markets Metals & Mining Titans 30 Index. This index is comprised of 30 of the largest emerging-market companies in the metals and mining sectors spanning nine countries.
The firm plans to introduce a total of 10 ETFs designed to provide broad-based exposure to leading emerging-market companies across many industries. Each ETF has exposure to a diversified mix of countries reducing single-country economic and political risk, says the firm, an important concern for many emerging markets investors. Index components were selected based on float-adjusted market capitalization, revenue, and net profits.
“For the first time, institutional investors will have a transparent vehicle for gaining sector-based exposure to the emerging markets,” said Robert Holderith, chief executive officer at Emerging Global Advisors. “Our family of ETFs will provide the market access and liquidity to allow institutions to execute trading and investment strategies that have not been previously possible.”