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

...

The first-ever emerging market sector family of Exchange-Traded Funds (ETFs) has been introduced by Emerging Global Advisors, LLC, (EGA) it was announced today.

The new Emerging Global Shares (EGS) family of ETFs is based on the Dow Jones Emerging Markets Sector Titans Indexes and is designed to provide institutional investors with broad-based exposure to leading emerging market companies across multiple industry sectors. The initial funds will focus on Energy and Metals & Mining. All the ETFs will be listed on the NYSE Arca electronic exchange.

“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.”

The initial

…

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

...