MutualFundWire.com: Emerging Global Advisors Launches Another Titanic Fund
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Wednesday, September 16, 2009
Emerging Global Advisors Launches Another Titanic Fund
Emerging Global Advisors has had a busy summer. On Wednesday the New York-based asset manager released a new ETF, its fourth since May, and it has eight more, already-SEC-registered funds waiting on the back burner.
The new Dow Jones Emerging Markets Financial Titans Index Fund will track the Dow Jones Emerging Markets Financial Titans 30 Index, which is composed of the 30 largest emerging markets financial companies.
“We're trying not to replicate what we see as an impractical way of delivering products," Emerging Global's CEO, Bob Holderith, told the MFWire. "We could deliver all 12 [new funds] at once, but that would be a little overwhelming.”
The fund will invest in world-wide firms, such as the Industrial & Commercial Bank China Ltd., Itau Unibanco Holding S.A. and China Life Insurance Co. Ltd.
Company Press Release
NEW YORK, (September 16, 2009) – Emerging Global Advisors, LLC, a leading provider of sector-based emerging markets Exchange-Traded Funds (ETFs), has added a new ETF to its lineup, it was announced today: the Dow Jones Emerging Markets Financial Titans Index Fund (NYSE Arca: EFN).
“Financial Services is an increasingly important component of the emerging markets success story,” said Robert Holderith, chief executive officer at Emerging Global Advisors (EGA). “The companies in this sector, through their ability to provide liquidity, will play an increasingly vital role in driving domestic growth within these economies. Our new ETF will provide the only sector-based exposure to this industry.”
Dow Jones Emerging Markets Financial Titans Index Fund (NYSE Arca: EFN) EFN seeks to track, before fees and expenses, the performance of the Dow Jones Emerging Markets Financial Titans 30 Index, which includes 30 of the largest emerging markets financial companies in banking, life insurance and non-life insurance, real estate investment and services, and financial services, among others. It includes companies from 10 different countries. As of September 11th, 2009, the top five, with their respective weightings, are currently China (39.71 percent), Brazil (22.88 percent), India (13.21 percent), South Africa (9.25 percent), and Malaysia (3.96 percent). As of September 11th 2009, the top three holdings were Industrial & Commercial Bank of China Ltd. (9.1 percent), Itau Unibanco Holding S.A. (9.1 percent) and China Life Insurance Co. Ltd. (8.5 percent)*.
Stocks are selected to all Dow Jones Titans indexes based on ranking market capitalization, revenue, and net profit.
A Growing Family of ETFs
EFN is the fourth ETF to be introduced by Emerging Global Advisors, and joins the firm’s growing family of sector-based emerging markets funds that includes the Emerging Global Shares Dow Jones Emerging Markets Energy Titans Fund (NYSE Arca: EEO), the Emerging Global Shares Dow Jones Emerging Markets Metals & Mining Titans Index Fund (NYSE Arca: EMT), and the Dow Jones Emerging Markets Composite Titans Index Fund (NYSE Arca: EEG).
“Our funds are designed to provide both currency and country diversification within Emerging Markets while giving investors exposure to many of the most dynamic sectors,” continued Holderith.
Emerging Global has registered a total of 12 emerging markets ETFs. 10 are sector-based, one covers the emerging markets metals and mining companies and the twelfth is a broad based composite.
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.
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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 do 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).
Printed from: MFWire.com/story.asp?s=22627
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