EGShares, the ETF arm of Emerging Global Advisors, launched a new emerging market ETF that—in a twist—will track an investment index rather than a benchmark index.
The new ETF, the Emerging Markets Core ETF (EMCR) will track the S&P Emerging Markets Core Index, which has less industry and mature economy concentration than conventional benchmarks such as the MSCI Emerging Markets Index and the FTSE Emerging Index. The S&P Emerging Markets Core Index holds a little more than 100 securities and is equally-weighted.
The new ETF will carry an annual expense ratio of 70 basis points and will be passively managed.
To better track its index, the Emerging Markets Core ETF plans to invest across several nations with China, South Africa and India each getting weighted at 15% of the portfolio, and Brazil and Russia accounting for 10% and 8.8%, respectively. Across industries, the ETF is expected to tilt more toward consumer-driven stocks—with more than one-third of its portfolio expected to be in the consumer sector—rather than the heavy concentration of financial and oil stocks many other emerging market ETFs chase.
This is the 22nd ETF launched by EGA's EGShares unit that focuses solely on emerging markets. New York-based EGA holds approximately $780 million in assets under management.