EGShares has announced that they will begin trading the EGShares Emerging Markets Dividend Growth ETF (NYSEArca:EMDG) Monday, July first. The Fund seeks investment results that correspond (before fees and expenses) to the price and yield performance of the FTSE Emerging All Cap ex-Taiwan Diversified Capped Dividend Growth 50 Index.
Total Annual Fund Operating Expenses: 0.85%
Principal Investment Strategies
The Fund is an exchange-traded fund (“ETF”). The Fund seeks to achieve its investment objective by attempting to replicate the portfolio of the Dividend Growth Underlying Index through investments in equity securities, including common shares traded on local exchanges, American Depositary Receipts (“ADRs”) and Global Depositary Receipts (“GDRs”). ADRs and GDRs represent ownership interests in shares of foreign companies that are held in financial institution custodial accounts, and are traded on exchanges in the United States and around the world.
Under normal circumstances, the Fund will invest at least 80% of its net assets in emerging market companies included in the Dividend Growth Underlying Index and generally expects to be substantially invested at such times, with at least 95% of its net assets invested in these securities. The Fund invests in the constituent companies of the Dividend Growth Underlying Index, which may include small, medium and large capitalized companies (“small cap”, “mid cap” and “large cap” companies, respectively) domiciled in emerging market countries. The market capitalization of the companies in Dividend Growth Underlying Index will be within the market capitalization range of the top 85% of companies in the FTSE All Cap ex-Taiwan Float Universe. The Emerging Markets Dividend Growth Underlying Index is a free-float market capitalization weighted index that measures the stock performance of 50 emerging markets companies with a high compounded annual dividend growth rate that are members of the FTSE Emerging All Cap ex Taiwan Universe. A free-float index is one that only uses freely traded shares in calculating the market capitalization weighting. The components of the Dividend Growth Underlying Index will have also paid dividends consistently over the last five years.
The Fund intends to replicate the constituent securities of the Dividend Growth Underlying Index as closely as possible using ADRs, GDRs or ordinary local shares. In certain circumstances, when it may not be possible or practicable to fully implement a replication strategy, the Fund may utilize a “representative sampling” strategy whereby the Fund would hold a significant number of the component securities of the Dividend Growth Underlying Index, but may not track the index with the same degree of accuracy as would an investment vehicle replicating the entire index.
The Fund will concentrate its investments (i.e., hold 25% or more of its total assets) in a particular industry or group of industries to approximately the same extent that the Dividend Growth Underlying Index is concentrated. The Fund is non-diversified, which means that it can invest a greater percentage of its assets in any one issuer than a diversified fund can.
You can find the complete prospectus: HERE
Related: iShares MSCI Emerging Markets Indx (ETF)(NYSEARCA:EEM), Vanguard MSCI Emerging Markets ETF(NYSEARCA:VWO)