Global X Funds, the New York-based fund provider known for its niche strategies, is looking to expand its reach into the emerging markets by serving up three new ETFs that would invest exclusively in regional consumer-focused names.
In paperwork it filed with U.S. regulators, the company detailed plans for three funds that would track Solactive benchmarks and invest in ADRs and GDRs of companies that produce or sell goods and services to consumers in different emerging markets regions. The proposed funds include:
- Global X Africa Consumer ETF
- Global X Asia Consumer ETF
- Global X Latin America Consumer ETF
On the surface, the strategies seem akin to other Global X funds—namely the Global X Brazil Consumer ETF (NYSEArca: BRAQ) and the Global X China Consumer ETF (NYSEArca: CHIQ)—that also offer investors direct access to consumer-focused equities though in single-country strategies.
The filing is timely in a sense that more and more attention is being paid to the important role a booming middle class across the developing world has on the region’s economic growth.
Fund providers such as Emerging Global Advisors and iShares have already jumped onto the emerging markets domestic-demand bandwagon and have had success attracting investors.
The EGShares Emerging Markets Consumer ETF (NYSEArca: ECON), for instance, has gathered $412 million since its inception two years ago, while the iShares MSCI Emerging Markets Consumer Discretionary Sector Index Fund (NYSEArca: EMDI) has gathered some $3 million in its six-month existence.
Global X didn’t provide many details on the funds as far as their country allocation, tickers and fees.
Smart beta isn’t smarter than cap weighting, but it is different, and that’s great for investors.
Trial by fire is one way to discover why ETF transparency matters.
Most people now realize leveraged ETFs can hurt you, but how, then, to use them?
What would a shift out of a mutual fund and into an ETF look like up close?