SPDR Emerging Market Dividend ETF Planned

November 22, 2010

State Street Global Advisors filed paperwork with the Securities and Exchange Commission on Nov. 19 to offer an emerging markets equity ETF focused on companies, including those in the so-called BRIC countries—Brazil, Russia, India and China—that pay attractive dividends.

The SPDR S&P Emerging Markets Dividend ETF will track the S&P Emerging Markets Dividend Opportunities Index, which uses a sampling strategy. The benchmark includes publicly traded companies with market capitalizations of at least $1 billion and float-adjusted market caps of $300 million, the filing said. As of July 30, the index comprised 100 securities.

The ETF represents another way to access one of the more attractive investment classes since the market crash of 2008-2009. The Vanguard MSCI Emerging Markets ETF (NYSEArca: VWO) was the most popular U.S. ETF in 2010 through the third quarter, gathering more than $13 billion in the first nine months of the year. Moreover, it has risen almost 16 percent in price in the past six months.

Countries covered in the index have historically included, among others: Brazil, Chile, China, Czech Republic, Egypt, Hungary, India, Indonesia, Israel, Korea, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand and Turkey, the filing said.

State Street didn’t provide a ticker for the proposed fund and didn’t disclose an annual expense ratio for the proposed ETF.

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