The new ETF seeks to track, before fees and expenses, the performance of the Dow Jones Emerging Markets Titans Composite 100 Index. The Dow Jones Index is made up of the 10 top-ranked stocks from each of the 10 Dow Jones Emerging Markets Sector Titan Indexes – Basic Materials, Consumer Goods, Consumer Services, Financials, Healthcare, Industrials, Oil & Gas (energy), Technology, Utilities, and Telecommunications. Fifteen emerging markets countries are represented in the index, ranging from China Offshore and Brazil to Egypt and Slovenia. The fund invests only in emerging markets countries, giving investors a pure play on stocks in those economies.
“Through EEG, investors will be able to gain broad-based exposure to industry leaders in key sectors across multiple emerging markets countries,” said Robert Holderith, chief executive officer at Emerging Global Advisors (www.egshares.com). “We believe it provides a highly efficient vehicle for building a position in many of the world’s fastest-growing industries and economies.”
The top five countries represented in the Dow Jones index are China Offshore (20.94 percent); Brazil (20.02 percent); India (17.89 percent); Russia (15.95 percent); and Mexico (9.25 percent). The top sectors include Oil & Gas (30.87 percent); Financials (21.87 percent); and Telecommunications (11.55 percent). Among the top company holdings in the index are Gazprom (Russia/Oil & Gas); Industrial & Commercial Bank of China (China Offshore/Financials); America Movil (Mexico/Telecommunications); and Companhia Vale do Rio Doce (Brazil/Basic Materials). The expense ratio for the new fund is 0.75 percent (75 basis points).
The Emerging Global Shares Dow Jones Emerging Markets Titans Composite Index Fund is the third sector-based ETF to be introduced by Emerging Global, following the Emerging Global Shares Dow Jones Emerging Markets Energy Fund (NYSE Arca: EEO) and the Emerging Global Shares Dow Jones Emerging Markets Metals & Mining Titans Index Fund (NYSE Arca: EMT). Each Emerging Global ETF has exposure to a diversified mix of countries reducing single-country economic and political risk, an important concern for many emerging markets investors. Components of the underlying indexes have been selected by Dow Jones Indexes based on float-adjusted market capitalization, revenue, and net profits.
Emerging Global plans to introduce a total of 10 sector-based emerging markets ETFs based on the modified market cap Dow Jones indexes, as well as products built on a Basic Resources index, and additional composites of multiple indexes.
About Emerging Global Advisors LLC
Emerging Global Advisors LLC is an independent investment advisory firm and the sponsor of the Emerging Global Shares family of Exchange-Traded Funds. The firm’s thematic research focuses primarily on investor opportunities in the emerging markets. More information on the firm and its ETF products can be found at www.egshares.com. The Emerging Global Shares Funds are distributed by ALPS Distributors, Inc. Robert Holderith is a registered representative of ALPS Distributors, Inc.
Carefully consider the Fund’s investment objectives, risk factors and charges and expenses before investing. This and other information can be found in the Funds’ prospectuses, which may be obtained by calling 1-888-800-4EGS (4347) or by visiting the fund’s website www.egshares.com to view or download a prospectus. Read the prospectus carefully before investing. Investing involves risk, including possible loss of principal.
ETFs are subject to risk similar to those of stocks including those regarding short-selling and margin account maintenance.
These funds will concentrate their investments in issuers of one or more particular industries to the same extent that their Underlying Index is so concentrated and to the extent permitted by applicable regulatory guidance. Concentration risk results from maintaining exposure to issuers conducting business in a specific industry. There is a risk that those issuers (or industry sectors) will perform poorly and negatively impact a Fund. The risk of concentrating investments in a limited number of issuers in a particular industry is that a Fund will be more susceptible to the risks associated with that industry than a fund that does not concentrate its investments.
In addition to the normal risks associated with investing, emerging market investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles, from economic or political instability in other nations or increased volatility and lower trading volume.
The ETFs are new and have no operating or performance history. They are not suitable for all investors.
“Dow Jones,” and “Dow Jones Emerging Sector Titans Indexes™,” are service marks of Dow Jones & Company, Inc. and have been licensed for use for certain purposes by Emerging Global Advisors. EGA’s ETFs based on the Dow Jones Emerging Sector Titans Indexes are not sponsored, endorsed, sold or promoted by Dow Jones, and Dow Jones makes no representation regarding the advisability of trading in such product(s).