New SPDR Looks ‘Beyond BRICs’

February 24, 2014

State Street Global Advisors debuted the SPDR MSCI EM Beyond BRIC ETF (EMBB) in early December. The fund competes directly with Emerging Global Advisors’ EGShares Beyond BRICs ETF (BBRC) and Global X’s Next Emerging & Frontier ETF (EMFM).

EMBB—like BBRC and EMFM—avoids the so-called BRIC countries in favor of less popular investment destinations in the developing world.

The SSgA fund invests in American depositary receipts and global depositary receipts of issuers from Chile, Colombia, Czech Republic, Egypt, Hungary, Indonesia, Malaysia, Mexico, Morocco, Peru, the Philippines, Poland, South Africa, South Korea, Taiwan, Thailand and Turkey. Its expense ratio is 0.55 percent, undercutting both BBRC and EMFM, which come with expense ratios of 58 basis points.

Interestingly, South Korea and Taiwan have the largest country weightings in EMBB’s portfolio; the underlying indexes of both BBRC and EMFM exclude those countries.

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