Daily ETF Watch: Blue Chip Fund With EM Riff

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January 02, 2014
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VWOVanguard FTSE Emerging Markets
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Emerging Markets ETFs

Emerging Global targets behemoths of the developing world.

Emerging Global Advisors has put into registration a fund that will invest in developed-world blue chip companies that have sizable operations in the emerging markets at a time when asset prices in that part of the investing universe are under pressure as the Federal Reserve begins “tapering” its quantitative easing.

The proposed EGShares Blue Chip EM Achievers ETF will track the companies in the Blue Chip EM Achievers Underlying Index, an equal-weighted stock market index comprising 40 developed market companies that have growing revenue exposure to emerging and frontier markets.

The Fed has signaled that it will begin to taper its economic stimulus program at a clip of $10 billion starting this month. Broader emerging market ETFs such as the iShares MSCI Emerging Markets ETF (EEM | B-100) fell 4.4 percent last year, and the Vanguard FTSE Emerging Markets ETF (VWO | B-85) is down 6.2 percent in 2013.

Going forward, the tapering theme will continue to hang over emerging markets this year, putting more pressure on emerging market assets in the coming months, according to Dennis Hudachek, ETF analyst at IndexUniverse.

Associated tickers and fees for the fund were not disclosed in the filing.

There were no other filings or launches this morning.

 

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