GlobalShares FTSE Emerging Markets Fund (GSR) To Begin Trading Tomorrow December 8th

Home > GlobalShares FTSE Emerging Markets Fund (GSR) To Begin Trading Tomorrow December 8th

GlobalShares FTSE Emerging Markets Fund (GSR) To Begin Trading Tomorrow December 8th

December 7th, 2009

The GlobalShares FTSE Emerging Markets Fund (GSR) will begin trading tomorrow December 8th. The Fund will seek investment results that correspond (before fees and expenses) generally to the performance of the equity index called the FTSE Emerging Markets Index.

Principal Investment Strategies: The Fund will normally invest at least 80% of its total assets in securities that comprise the Underlying Index (which may include depository receipts representing such securities) and investments that have economic characteristics that are substantially identical to the economic characteristics of the component securities in the Underlying Index. The Fund has adopted a policy that requires the Fund to provide shareholders with at least 60 days notice prior to any material change in this policy or the Underlying Index. The Underlying Index is a market capitalization index, adjusted based on the free-float of potential index constituents, and designed to measure the performance of large-, medium-and small-capitalization companies located in emerging market countries throughout the world. Emerging markets generally include all countries in the world except for Australia, Austria, Belgium/Luxembourg, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, United Kingdom and the United States. The Underlying Index is currently comprised of approximately 700 stocks, which represent approximately 90% of the investable market capitalization in emerging markets. The Fund’s investment objective is non-fundamental and may be changed by the Board of Trustees without shareholder approval.

The Fund, using an “indexing” investment approach, attempts to replicate, before fees and expenses, the performance of the Underlying Index. The Adviser seeks correlation over time of 0.95 or better between the Fund’s performance and the performance of the Underlying Index; a figure of 1.00 would represent perfect correlation. Because of the practical difficulties and expense of purchasing all of the securities in the Underlying Index, the Fund does not purchase all of the securities in the Underlying Index. Instead, the Adviser utilizes a “sampling” methodology in seeking to achieve the Fund’s investment objective. Sampling means that the Adviser uses quantitative analysis to select securities from the Underlying Index universe to obtain a representative sample of securities that resemble the Underlying Index in terms of key risk factors, performance attributes and other characteristics. These include industry weightings, market capitalization and other financial characteristics of securities. The quantity of holdings in the Fund will be based on a number of factors, including asset size of the Fund and transaction costs. The Adviser generally expects the Fund to hold less than the total number of securities in the Underlying Index, but reserves the right to hold as many securities as it believes necessary to achieve the Fund’s investment objective. The Fund may also invest in other investment companies and utilize derivative instruments, such as swaps, options, warrants, futures contracts and currency forwards (and participation notes, convertible securities and structured notes), to seek performance that corresponds to the Underlying Index.

Index Methodology: The constituents of the Underlying Index are selected by FTSE International Limited (“FTSE” or the “Index Provider”) pursuant to a proprietary methodology. The equities included in the Underlying Index are selected annually and are free-float weighted (i.e., weighted based on the shares of a public company that are not held by corporate insiders that are freely tradable in the public market or markets on which a company’s securities are listed). Equities are also screened to ensure that they meet certain liquidity guidelines to ensure that the Underlying Index is tradable. The number of securities included in the Underlying Index will vary from month to month and may be higher or lower than the historical ranges. The Underlying Index is adjusted twice per year. During each period, the number of equity securities may decrease as the common stocks are either delisted or not actively traded for any reason including, but not limited to, mergers, acquisitions and bankruptcies.

What are the Costs of Investing?

This table describes the fees and expenses that you may pay if you buy and hold Shares of the Fund. Investors purchasing and selling Shares in the secondary market may be subject to costs (including customary brokerage commissions) charged by their broker.

Shareholder Transaction Expenses (fees paid directly from your investments)		None*
Annual Fund Operating Expenses. ⁽¹⁾⁽²⁾ (expenses that are deducted from the Fund’s assets)
Management Fees		0.125%
Distribution and Service (12b-1) Fees ⁽³⁾		—%
Other Expenses		0.435%
Total Annual Fund Operating Expenses		0.560%
Expense Waiver and Reimbursements ⁽⁴⁾		0.170%
Net Operating Expenses		0.390%