NEW YORK--(BUSINESS WIRE)--Emerging Global Advisors, an asset management company focused exclusively on emerging markets and the sub-advisor to the EGShares family of exchange-traded funds (ETFs), announced today the successful launch of a comprehensive suite of investment solutions for sector investing in emerging market countries on NYSE Arca.
The funds, branded as GEMS (Global Emerging Market Sectors), allow investors to pursue emerging markets sector exposures in a manner similar to what is possible in the US and other developed markets. The funds are all based on the Dow Jones Emerging Markets Sector Titans Indexes and are composed of leading emerging market companies in each of the 10 Industries defined by the Industry Classification Benchmark (ICB).
"We believe today's introduction of the EGShares GEMS ETFs fills the market need for a comprehensive set of solutions to allow investors to pursue sector exposures across emerging market countries," said Marten S. Hoekstra, EGA’s CEO.
"The GEMS can be an efficient way to access specific sectors. Their multi-country focus potentially offers considerable advantages, including diversity of economic, political, and currency exposure. And, as ETFs, they offer intraday liquidity and transparency of holdings, cost advantages, hedging and shorting opportunities, and allow for rapid implementation of portfolio strategy changes1. These are compelling attributes for investment managers, particularly those who are now managing emerging markets positions as they do their US portfolios."
Robert C. Holderith, EGA’s founder and president, said EGA chose to base the GEMS suite of ETFs on the Dow Jones Emerging Markets Sector Titans Indexes because they include only companies from International Monetary Fund-defined emerging markets countries. Investors often must use emerging markets indexes which include companies from developed countries. “Another potential advantage of the Titans indexes,” Mr. Holderith said, “is that they screen emerging market sectors for equities that offer greater liquidity relative to peer securities.”
“The Titans indexes were designed for investment, not benchmarking, purposes,” Mr. Holderith said.
The GEMS’ sector solution set is:
- EGShares GEMS Composite ETF (NYSE Arca: AGEM)*
- EGShares Energy GEMS ETF (NYSE Arca: OGEM)*
- EGShares Financials GEMS ETF (NYSE Arca: FGEM)*
- EGShares Basic Materials GEMS ETF (NYSE Arca: LGEM)
- EGShares Consumer Goods GEMS ETF (NYSE Arca: GGEM)
- EGShares Consumer Services GEMS ETF (NYSE Arca: VGEM)
- EGShares Health Care GEMS ETF (NYSE Arca: HGEM)
- EGShares Industrials GEMS ETF (NYSE Arca: IGEM)
- EGShares Technology GEMS ETF (NYSE Arca: QGEM)
- EGShares Telecom GEMS ETF (NYSE Arca: TGEM)
- EGShares Utilities GEMS ETF (NYSE Arca: UGEM)
* AGEM, OGEM, and FGEM were previously marketed under the tickers EEG, EEO, and EFN
About Emerging Global Advisors
Based in New York City, Emerging Global Advisors LLC is an independent investment advisory firm and the sub-advisor to the EGShares family of exchange-traded funds (ETFs). The EGShares product offerings are designed to provide investment exposures that allow more accurate targeting of important emerging market opportunities. More information on the firm and its investment products can be found at www.egshares.com. The Emerging Global Shares Exchange-Traded Funds are distributed by ALPS Distributors, Inc.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Funds before investing. To obtain a prospectus containing this and other important information, please call (888) 800-4EGS (4347) or visit www.egshares.com to view or download a prospectus online. Read the prospectus carefully before you invest.
Emerging market investments 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. Brokerage fees do apply.
Distributed by ALPS Distributors, Inc.
1 Holdings are posted daily on web site. Most ETF investors pay low management and administrative fees that are lower than those of most actively managed mutual funds. According to Morningstar, the average expense ratio for equity mutual funds (both domestic and international) is 1.32%, while the average expense ratio for all exchange traded funds is .41%. Due to passive management, low turnover and the unique “in kind” redemption process of ETFs, capital gains tax exposure is minimized. When redeemed, ETF shares are simply sold on the open market and the tax liability is usually based on the seller’s original purchase price for the ETF.
Hedging refers to an investment made to reduce the risk of adverse price movements in an asset. Normally, a hedge consists of taking an offsetting position in a related security. Shorting is the practice of selling assets, usually securities, that have been borrowed from a third party with the intention of buying identical assets back at a later date to return to the lender.