iShares Launches EM Infrastructure ETF
Source: http://www.indexuniverse.com/sections/newsinfocus/6029-ishares-launches-emerging-markets-infrastructure-etf.html?Itemid=3&utm_source=straightstocks.com&utm_medium=sidebar&utm_campaign=rssPosted on Friday, June 19th, 2009 | In Exchange Traded Funds, Market Commentary
Fund will go head-to-head with a PowerShares ETF.
iShares launched a new emerging markets infrastructure exchange-traded fund on Friday, June 19, with the debut of the iShares S&P Emerging Markets Infrastructure Index Fund (NASDAQ: EMIF).
EMIF holds a portfolio of 30 large-cap emerging market infrastructure companies focused in markets like
EMIF will go head-to-head with the PowerShares Emerging Markets Infrastructure Portfolio (NYSE Arca: PXR), which launched in October of this year and currently has $45.5 million in assets under management. Both funds charge management fees of 0.75%.
The two funds differ markedly in how they approach the market. EMIF breaks the emerging markets infrastructure field down into three subsectors: transportation, energy and utilities. At each semiannual rebalancing, it aims for a 20%, 40% and 40% weight in the three markets. It limits itself to the 30 most liquid, large-cap holdings in the field.
PXR holds a broader portfolio of 60 names and defines its market differently, looking for companies that fit one of seven categories: 1) construction and engineering; 2) construction machinery; 3) construction materials; 4) diversified metals and mining; 5) heavy electrical equipment; 6) industrial machinery; and 7) steel. It aims to diversify across the market capitalization spectrum, and indeed, has a large weight (49%) in mid-cap companies.
On a top-line basis, EMIF seems more focused on transportation and electrical utilities, while PXR has more exposure to mining and basic materials.
On a country basis, the two funds are very different. EMIF has more than twice the exposure to
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