Emerging Global Advisors today launched the EGShares Emerging Markets Dividend Growth ETF (NYSEArca:EMDG), the first emerging markets (EM) dividend growth exchange-traded fund (ETF), which aims to provide investors with a total return approach to investing in quality companies within the FTSE Emerging All Cap ex Taiwan Universe that have achieved consistent dividend growth over the past five years.
Dividend growth is an important investment theme among U.S. investors. Rapid growth of EM-headquartered companies has created a potential opportunity for dividend growth investors to obtain exposures in emerging markets. As a result of the maturation of many EM companies, more of them have initiated or increased dividend payouts, distributing a greater proportion of their profits to shareholders.
Dividends have been an important source of emerging market total return, contributing about one-third,1 and have sometimes been a factor in dampening portfolio volatility.
“Many emerging market-based multinational companies have demonstrated their ability to increase dividends,” said Marten Hoekstra, CEO of Emerging Global Advisors. “We launched EMDG as an investment tool to enable dividend growth investors to implement their investment strategy in emerging markets and diversify dividend yield sources.”
Emerging Global Advisors and FTSE collaborated to design the FTSE Emerging All Cap ex Taiwan Diversified Capped Dividend Growth 50 Index, which takes into account dividend quality and growth, and dividend payout ratios. The Fund tracks this Index. EGShares Emerging Markets Dividend Growth ETF trades on NYSE Arca under the ticker symbol EMDG. The ETF is passively managed and does not use options, swaps or other derivatives in its portfolio.
For more information on EMDG, please visit www.egshares.com/EMDG.
About Emerging Global Advisors (EGA)
Emerging Global Advisors (EGA) is an asset management company focused exclusively on providing investors with the tools they need to get the exposures they want in emerging markets and to use similar investment strategies in emerging markets as they do in developed markets. EGShares, the exchange-traded fund offering of Emerging Global Advisors, enables investors to allocate not merely to, but also within emerging markets through sector, thematic and core holding ETFs that implement advanced beta strategies and track indices designed for investment rather than benchmarking. For more information, please visit www.egshares.com.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Fund before investing. To obtain a prospectus containing this and other important information, please call (888) 800-4EGS (4347) or visitwww.egshares.com to view or download a prospectus online. Read the prospectus carefully before investing.
This Fund is new and therefore does not have a performance history of its own.
Shares are not individually redeemable and owners of the shares may acquire those shares from the Fund and tender those shares for redemption to the Fund in Creation Units only, typically consisting of aggregations of 50,000 shares.
FTSE Emerging All Cap ex-Taiwan Diversified Capped Dividend Growth 50 Index measures the stock performance of 50 emerging market companies whose 5-year dividend payout growth is faster than the average dividend payout growth in the FTSE Emerging Market Universe. The FTSE Emerging All Cap ex-Taiwan Diversified Capped Dividend Growth 50 Index is a product of FTSE and has been licensed for use for certain purposes by EGShares. The Fund is not sponsored, endorsed, sold or promoted by FTSE. FTSE makes no representation or warranty, express or implied, to the owners of the Fund or any member of the public regarding the advisability of investing in securities generally or in the Fund particularly. One cannot directly invest in an index. FTSE makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any FTSE data contained herein.
Emerging market investments involve risk of capital loss from fluctuation in currency values, differences in accepted accounting principles, economic or political instability or increased volatility and lower trading volume. The Fund is non-diversified and, as a result, may have greater volatility than diversified funds. The Fund’s returns may not match the returns of the underlying indexes. Investments in small- and mid-cap companies are generally more volatile. Diversification does not guarantee profit or protect against loss.
Marten Hoekstra is a registered representative of ALPS Distributors, Inc.
Distributed by ALPS Distributors, Inc.
EGS001351 Expires 7/1/14.
|1||Bloomberg data as of March 31, 2013. Past performance does not guarantee future results. Daily returns of the MSCI Emerging Markets Price Return Index and Total Return Index. Dividend contribution is derived from the spread between the returns of the MSCI EM Price and Total Return indices for the period March 31, 2001 – March 31, 2013.|
Bill Fallon, 212-925-6900