Emerging Global Advisors, the sub-advisor to the EGShares family of exchange-traded funds (ETFs) this week launched a suite of sector-specific, emerging markets ETFs.
Company officials said the funds are based on the Dow Jones Emerging Markets Sector Titans Indexes and are composed of leading emerging market companies in 10 industries and includes one composite ETF that pulls from multiple industries.
Emerging market ETFs have grown in popularity with both institutional and retail investors this year as investors look for growth opportunities outside the U.S.
Last month, State Street Global Advisors said that total assets invested in global ETFs surged 28.4% from April and a Franklin Templeton report found that 62% of both U.S. and global investors said they plan to invest in international markets in the next decade even though only 34% are currently investing outside their own countries.
EGShares new "GEMS" funds -- short for global emerging market sectors, are designed to give investors exposure to international market sectors in the same way they can access ETFs focused on U.S. and developed market funds.
EGShares Launches “GEMS” Suite of ETFs: First Emerging Markets Sector Solution Set
"We believe today's introduction of the EGShares GEMS ETFs fills the market need for a comprehensive set of solutions to allow investors to pursue sector exposures across emerging market countries," said Marten Hoekstra, EGA’s CEO, said in a statement. "
"The GEMS can be an efficient way to access specific sectors," he added. "Their multi-country focus potentially offers considerable advantages, including diversity of economic, political, and currency exposure. And, as ETFs, they offer intraday liquidity and transparency of holdings, cost advantages, hedging and shorting opportunities, and allow for rapid implementation of portfolio strategy changes."
Company officials said the firm decided to base the GEMS suite on the Dow Jones' Titan Indexes because they include only companies from International Monetary Fund-defined emerging markets countries -- giving investors a pure emerging markets play devoid of any holdings from developed countries.
"Another potential advantage of the Titans indexes is that screen emerging market sectors for equities that offer greater liquidity relative to its peers," said Robert Holderith, EGA's founder and president.
The GEMS sector funds include:
-- EGShares GEMS Composite ETF (NYSE Arca: AGEM)*
-- EGShares Energy GEMS ETF (NYSE Arca: OGEM)*
-- EGShares Financials GEMS ETF (NYSE Arca: FGEM)*
-- EGShares Basic Materials GEMS ETF (NYSE Arca: LGEM)
-- EGShares Consumer Goods GEMS ETF (NYSE Arca: GGEM)
-- EGShares Consumer Services GEMS ETF (NYSE Arca: VGEM)
-- EGShares Health Care GEMS ETF (NYSE Arca: HGEM)
-- EGShares Industrials GEMS ETF (NYSE Arca: IGEM)
-- EGShares Technology GEMS ETF (NYSE Arca: QGEM)
-- EGShares Telecom GEMS ETF (NYSE Arca: TGEM)
-- EGShares Utilities GEMS ETF (NYSE Arca: UGEM)