Third sector ETF for emerging markets launches aimed at providing a composite choice for investors.

 

 

The third emerging markets sector exchange-traded funds launched on Wednesday, this time adding top stocks from a composite index of 10 sectors spanning 15 countries.

The name of the new ETF is a mouthful – the Emerging Global Shares Dow Jones Emerging Markets Titans Composite Index Fund (NYSE Arca: EEG).  Its sponsor is Emerging Global Advisors, which is responsible for coming to market in May with the first sector-focused emerging markets ETFs so far.

Those are: the Emerging Global Shares Dow Jones Emerging Markets Energy Fund (NYSE Arca: EEO); and the Emerging Global Shares Dow Jones Emerging Markets Metals & Mining Titans Index Fund (NYSE Arca: EMT).  You can read more about those ETFs here.

EEG is designed to track the Dow Jones Emerging Markets Titans Composite Index. That benchmark includes the 100 top names by market capitalization

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First ETFs to take sector-only approach to emerging markets launch.

 

The growth in emerging markets can now be played by country-specific exchange-traded funds as well as broad-based stock portfolios.

But on Thursday, another option became available to investors. The first family of ETFs offering exposure to sectors within emerging markets was launched by New York-based Emerging Global Advisors.

EEO's Top 10

Wgt (%)

Russia

36.31

India

18.88

China (offshore)

16.32

Brazil

9.52

South Africa

6.82

Thailand

4.15

Chile

2.53

Colombia

1.87

Poland

1.61

Hungary

0.91

That's the group whose chief executive, Robert Holderith, has been a leader in developing new ways to unfreeze credit markets around the world. (See related article here.)

"Current ETF

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Although two different groups are proposing ways to use ETFs to help boost U.S. markets, a third concept blending the best of each may work.

 

With trillions of dollars in U.S. government funding already committed to combating the worst recession since World War II, regulators are increasingly enlisting private sector support.

Along those lines, lawmakers and Treasury officials are reportedly listening to—and in some cases soliciting—outside views from key leaders in the financial sector.

Asset managers focusing on exchange-traded funds are being included in this movement to broaden the scope of U.S. economic recovery plans. As detailed in an IndexUniverse.com analysis of key developments in the effort to thaw credit markets, large ETF sponsors as well as small-yet-influential players are involved.

(The full 21-page Special Report, three months in the making, can be viewed here.) 

Two ETF Plans Emerge

At the heart of the issue is resolving so-called "toxic" debt

...

Although two different groups are proposing ways to use ETFs to help boost U.S. markets, a third concept blending the best of each may work.

 

With trillions of dollars in U.S. government funding already committed to combating the worst recession since the Great Depression, regulators are increasingly enlisting private sector support.

Along those lines, lawmakers and Treasury officials are reportedly listening to—and in some cases soliciting—outside views from key leaders in the financial sector.

Asset managers focusing on exchange-traded funds are being included in this movement to broaden the scope of U.S. economic recovery plans. As detailed in an IndexUniverse.com analysis of key developments in the effort to thaw credit markets, large ETF sponsors as well as small-yet-influential players are involved.

(The full 21-page Special Report, three months in the making, can be viewed here.) 

Two ETF Plans Emerge

At the heart of the issue is resolving so-called "toxic" debt

...