Emerging Global has launched a suite of 11 emerging markets exchange-traded funds under the brand of GEMS (Global Emerging Market Sector) Funds. Three of the funds are rebranded and eight are brand new.
All 11 of the ETFs track the Dow Jones Emerging Markets Titans indexes, which provide exposure to the 30 largest companies in each market, thereby providing liquidity.
Each of the funds focus on a sector, including basic materials, consumer goods, consumer services, energy, financials, healthcare, industrials, utilities and a composite fund that provides exposure to all of the sectors.
“We believe the introduction of the EGShares GEMS ETFs fill the market need for a comprehensive set of solutions to allow investors to pursue sector exposures across emerging market countries,” said Marten S. Hoekstra, CEO of EGS. “The GEMS can be an efficient way to access specific sectors. 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 and shorting opportunities—allowing for rapid implementation of portfolio strategy changes.”
EGS said that with so many emerging market ETFs launching that focus on various capitalization levels, the move to a sector strategy is the logical next step in the evolution of ETFs.