Global X Files To Offer Brazil Sector ETFs

By
ETF.com Staff
April 03, 2010
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Global X pushes further into emerging market sector funds, this time with a filing to offer ETFs focused on Brazil, where planning for the 2014 World Cup and 2016 Summer Olympics will soon translate into big spending.

Global X, the New York-based fund company with a growing lineup of exchange-traded funds targeting specific industries in emerging market countries, filed with the Securities and Exchange Commission to offer six ETFs aimed at
Brazil’s growing economy.

The funds are the Global X Brazil Consumer ETF, the Global X Brazil Financials ETF, the Global X Brazil Industrials ETF, Global X Brazil Materials ETF, the Global X Brazil Utilities ETF and the Global X Brazil Mid Cap ETF. It didn’t specify annual management fees or ticker symbols in the filing, which was dated April 2. But it did say it plans to list the ETFs on the New York Stock Exchange.

Global X’s ETFs are in the works at a time after
Brazil
has been selected to host both the 2014 World Cup and the 2016 Summer Olympics. They would join an existing Brazil sector fund from New York-based Emerging Global, which rolled out a
Brazil
infrastructure ETF (NYSEArca: BRXX) in February. The two international sporting events Brazil will host means
South America’s biggest country will be investing heavily in various parts of its economy, particularly construction-related industries.

Other existing ETFs targeting
Brazil
include a small-cap fund (NYSEArca: BRF) from New York-based Van Eck Global and the first-in-class iShares MSCI Brazil ETF (NYSEArca: EWZ), which had $11.02 billion in assets at the end of March, according to data compiled by IndexUniverse.com.

A
China
Fund Too

Global X also filed to offer the Global X China Mid Cap ETF, adding to its existing lineup of
China
funds focused on different sectors in the world’s most populous nation.

Global X didn’t specify what trading symbol the new China ETF would have or how much it would cost investors, but did say it plans to list it on the New York Stock Exchange.

The seven new funds will be based on the Solactive Brazil Consumer Index, the Solactive Brazil Financials Index, the Solactive Brazil Industrials Index, the Solactive Brazil Materials Index, the Solactive Brazil Utilities Index, the Solactive Brazil Mid Cap Index and the Solactive China Mid Cap Index.

Global X plans to use so-called replication strategies on each of the proposed funds that aim to invest in securities in about the same proportions as in each of the underlying indexes.

ETF DAILY DATA

Van Eck's chip ETF 'SMH' doubled its assets on Tuesday, March 31, as total U.S.-listed ETF assets ended the day at almost $2.1 trillion.

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