Daily ETF Watch: Three Funds Launching

October 16, 2014

Three separate ETFs are launching today—two from iShares, the world’s biggest exchange-traded fund company, and a third from Vident Financial, the “principles-based” ETF company that has previously served up two “smart beta” equities funds.

The three new funds canvass three separate asset classes: equity and commodities, in the case of the two iShares funds; and a U.S. fixed-income strategy from Vident.

According to separate communiques from the BATS and Nasdaq exchanges, the primary respective listing venues for iShares’ two new funds, the new securities are:

Vident, in a press release, meanwhile said it is bringing to market the:

The three rollouts bring to 164 the number of new ETFs and ETNs that have been brought to market this year. At the same time last year, a total of 121 funds had been launched, and the total number of launches in 2013 was 162, according to data compiled by ETF.com.

More than 1,650 ETFs now populate the U.S. ETF universe, with total assets under management at $1.804 trillion, according to data compiled by ETF.com Analytics.

iShares’ Emerging Markets Fund Launch

EMHZ is a next-generation take on emerging markets that’s designed to steer clear of BRIC countries—Brazil, Russia, India and China—that have been bread-and-butter emerging markets for ETF investors for more than a decade.

It follows by 11 years the pioneering iShares MSCI Emerging Markets ETF (EEM | B-98), which has grown into a highly liquid $36 billion fund that is used by traders, institutions and buy-and-hold investors alike.

EMHZ will hold the bottom 25 percent of EEM’s market capitalization by country. In other words, emerging markets like Mexico, Malaysia, Indonesia and Thailand dominate the fund’s weighting, as opposed to the BRICS, Taiwan and South Korea. The BRICs make up about a third of EEM, and South Korea and Taiwan make up just over a quarter.

EMHZ will have an annual expense ratio of 50 basis points, or $50 for each $10,000 invested, while the EGShares Beyond BRICs ETF (BBRC | D-36), the first fund of its kind, has an expense ratio of 58 basis points.

 

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