Emerging Global Advisors has announced that they will begin trading The EGShares Emerging Markets CORE ETF (NYSEARCA:EMCR) Tuesday, October 16, 2012. The EGShares Emerging Markets CORE ETF seeks investment results that correspond (before fees and expenses) to the price and yield performance of the S&P Dow Jones Emerging Markets Core Index.
Total Annual Fund Operating Expenses after Fee Waiver and/or Expense Reimbursement: 0.70%
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 Emerging Markets Core 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 Emerging Markets Core 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 Emerging Markets Core Underlying Index, which may include small and medium capitalized companies (“small cap” and “mid cap” companies, respectively) domiciled in emerging market countries having a market capitalization of at least $1 billion at the time of purchase. The Emerging Markets Core Underlying Index is an equally weighted stock market index comprised of 116 leading companies that S&P Dow Jones Indexes determines to be representative of all industries in emerging market countries.
The Fund intends to replicate the constituent securities of the Emerging Markets Core 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 Emerging Markets Core 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 Emerging Markets Core 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.
Based on the number of Indian securities that are included in the Emerging Markets Core Underlying Index, the Fund may invest its assets in a wholly owned subsidiary in Mauritius (the “Subsidiary”), which in turn, invests at least 90% of its assets in Indian securities, and to some extent ADRs and GDRs. This investment structure enables the Fund to obtain benefits under a tax treaty between Mauritius and India.
For the full prospectus click: HERE