Saturday, November 02, 2013 10:00:51 PM
* Global X’s Beyond-BRICs ETF Near Launch
By Hung Tran | November 01, 2013
http://www.indexuniverse.com/sections/news/20341-global-xs-beyond-brics-etf-near-launch.html
Global X Funds’ latest offering, the Global X Next Emerging & Frontier ETF, looks like it’s close to launch, according to the fund’s latest prospectus, which details an annual expense ratio of 0.58 percent, or $58 per every $10,000 invested.
The proposed Global X Next Emerging & Frontier ETF, which will have a primary listing on the NYSE Arca under the symbol “EMFM,” will be based on the Solactive Next Emerging & Frontier Index.
Global X Funds is looking to further its reach into developing markets with an equity strategy that combines emerging and frontier markets, the latest sign that ETF sponsors are fine-tuning how they market developing-world strategies in the face of a broad pullback in the emerging markets.
Emerging market asset prices have been falling since spring, as challenges in different pockets of the developing world have cropped up around the world. Those head winds include China’s slowdown, growing civil unrest in South Africa and Turkey, concerns about the end of the Fed’s easy-money policies, and they extend to the sharp decline in the Indian rupee.
It seems that a number of fund sponsors are taking advantage of this moment of possible transition to tweak strategies or bring new ones out.
Fund Strategy
The new Global X fund will focus on countries such as Argentina, Bangladesh, Kazakhstan, Kenya, Kuwait, Laos, Mexico and Mongolia, to name a few.
Global X will open up custodian accounts in the specified markets/countries and will directly buy securities within those regions. The fund will also derive some of its exposure via American depositary receipts and global depositary receipts, according to the regulatory filing.
The index underlying the proposed EMFM fund excludes the BRIC countries of Brazil, Russia, India and China as well as “the most developed tier of emerging markets,” including South Korea and Taiwan.
Global X is something of a pioneer in frontier-market ETF investing. It rolled out two “first-to-market” frontier-market exchange-traded funds focused on Nigeria and Mongolia, respectively.
By Hung Tran | November 01, 2013
http://www.indexuniverse.com/sections/news/20341-global-xs-beyond-brics-etf-near-launch.html
Global X Funds’ latest offering, the Global X Next Emerging & Frontier ETF, looks like it’s close to launch, according to the fund’s latest prospectus, which details an annual expense ratio of 0.58 percent, or $58 per every $10,000 invested.
The proposed Global X Next Emerging & Frontier ETF, which will have a primary listing on the NYSE Arca under the symbol “EMFM,” will be based on the Solactive Next Emerging & Frontier Index.
Global X Funds is looking to further its reach into developing markets with an equity strategy that combines emerging and frontier markets, the latest sign that ETF sponsors are fine-tuning how they market developing-world strategies in the face of a broad pullback in the emerging markets.
Emerging market asset prices have been falling since spring, as challenges in different pockets of the developing world have cropped up around the world. Those head winds include China’s slowdown, growing civil unrest in South Africa and Turkey, concerns about the end of the Fed’s easy-money policies, and they extend to the sharp decline in the Indian rupee.
It seems that a number of fund sponsors are taking advantage of this moment of possible transition to tweak strategies or bring new ones out.
Fund Strategy
The new Global X fund will focus on countries such as Argentina, Bangladesh, Kazakhstan, Kenya, Kuwait, Laos, Mexico and Mongolia, to name a few.
Global X will open up custodian accounts in the specified markets/countries and will directly buy securities within those regions. The fund will also derive some of its exposure via American depositary receipts and global depositary receipts, according to the regulatory filing.
The index underlying the proposed EMFM fund excludes the BRIC countries of Brazil, Russia, India and China as well as “the most developed tier of emerging markets,” including South Korea and Taiwan.
Global X is something of a pioneer in frontier-market ETF investing. It rolled out two “first-to-market” frontier-market exchange-traded funds focused on Nigeria and Mongolia, respectively.
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