The firm plans eight developing-market ETFs, half with an income focus.
Emerging Global Advisors, the New York-based money management firm focused solely on sponsoring ETFs strategies targeting the developing world, filed regulatory paperwork detailing eight new funds, with most of them focused on specific aspects of all developing markets.
Half of the proposed strategies address income-generating needs of investment portfolios, three are sector-focused, and one is focused on consumer-related companies in Asia, according to the prospectus, which was filed with the Securities and Exchange Commission on May 1, 2013.
The proposed funds, none of which yet have tickers or annual expense ratios, are as follows:
- EGShares EM Bond Investment Grade Short Term ETF
- EGShares EM Bond Investment Grade Intermediate Term ETF
- EGShares EM Bond Investment Grade Long Term ETF
- EGShares EM Dividend High Income ETF
- EGShares EM Strategic Sector Allocation ETF
- EGShares EM Tactical Sector Allocation ETF
- EGShares EM Asia Consumer ETF
- EGShares EM Equal Weight Sector ETF
Most of the funds are in tune with a newer approach at emerging global that features a particular focus on all emerging markets, as opposed to a targeting of specific countries. Additionally, the four income-focused funds speak to a current concern in the world of investments that the post-crash era of “financial repression” created by central banks around the world has made finding decent yield quite difficult.
About 70 percent of Emerging Global’s $1.36 billion in total assets under management are in one fund, the EGShares Emerging Markets Consumer ETF (NYSEArca: ECON). The fund’s assets are now at about $1 billion, according to data compiled by IndexUniverse.
The proposed EGShares EM Asia Consumer ETF thus looms as a likely attempt by the firm to replicate the Midas touch of ECON in rapidy expanding countries in and around China.