EEB, BBRC Change Indexes

October 23, 2013

Guggenheim and Emerging Global Advisors each announced they would change the indexes on one of their ETFs in October.

With its new index, the $218 million Guggenheim BRIC ETF (EEB | B-42) will be adding global depositary receipts (GDRs), and with them, newfound access to Russia; while the $10.5 million EGShares Beyond BRICs ETF (BBRC | F-48) will change to a FTSE index that integrates frontier-market holdings into the fund for the first time.

In the case of Guggenheim's EEB, a first-to-market ETF that launched in September 2006, it was never a true BRIC fund to the extent that it lacked a substantial allocation to Russia, and the change this fall to the BNY Mellon BRIC Select DR Index addresses that shortcoming. It will abandon the BNY Mellon BRIC Select ADR Index at that time. The new index includes both GDRs and American depositary receipts (ADRs), instead of just ADRs. EEB will also, for the first time, be able to own Hong Kong-listed China H-shares.

The EGShares Beyond BRICs ETF's index change will introduce frontier markets into its portfolio for the first time. The fund's new benchmark, the FTSE Beyond BRICs Index, will allow for up to a third of the fund's allocation to be in so-called frontier markets. The fund will drop the Indxx Beyond BRICs Index at the time of the change. The new index will also allow for up to 75 percent of holdings to be in more economically developed emerging market countries.

 

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