EGShares’ EM Funds Take Shape

August 08, 2013

Emerging Global Advisors filed updated regulatory paperwork that included tickers and expense ratios on two funds it put into registration three months ago focused on high payouts and on consumer companies in Asia. The new details suggest launch dates for the two equity ETFs are near, if not imminent.

Details about the funds, both of which will cost 0.85 percent, or $85 for each $10,000 invested, are as follows:

  • EGShares EM Dividend High Income ETF (NYSEArca: EMHD) is benchmarked to the FTSE Equal Weighted Emerging All Cap Ex Taiwan Diversified Dividend Yield 50 Index
  • EGShares EM Asia Consumer ETF (NYSEArca: ACON) will track the Dow Jones Emerging Market Consumer Asia 50 Index.

The Asia-focused ETF, “ACON,” which has exposure to China, India, Indonesia, Malaysia, Thailand and the Philippines, is a regional version of the firm’s most successful fund to date: the $1 billion EGShares Emerging Markets Consumer ETF (NYSEArca: ECON).

ECON, which spans all emerging markets, makes up almost three-quarters of Emerging Global’s $1.38 billion in total assets.

ECON’s pan-emerging markets approach represents something of a shift in focus that has manifested at the New York-based firm in the past year. Early ETFs dating back to the firm’s debut in 2009 were often focused on particular sectors in particular countries, but the ECON-like emphasis on all the emerging markets is where the firm is now focused.

The high-dividend fund EMHD is designed with that across-the-emerging-markets global focus. Its rollout also reflects fund sponsors’ desire to serve up non-bond-income-generating strategies at a time when yields are at low levels following the financial crisis of 2008-2009.

Both ACON and EMHD are managed by Emerging Global Chief Investment Officer Richard Kang.

Emerging Global put the two funds into registration in May along with six other strategies that are still making their way through the regulatory gauntlet. Those are:

  • 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 Tactical Sector Allocation ETF
  • EGShares EM Equal Weight Sector ETF
  • EGShares EM Strategic Sector Allocation ETF

       

       

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