Frontier markets added to EGShares Beyond BRICs ETF

Oct 25th, 2013 | By | Category: Equities

**ETF Portfolios Summit 2017 - Tuesday 16th May @ London Stock Exchange - REGISTER NOW**

Emerging Global Advisors (EGA), the asset manager to the EGShares exchange-traded fund line-up, has completed the transition of the EGShares Beyond BRICs ETF (BBRC) to track the FTSE Beyond BRICs Index.

Frontier markets added to EGShares Beyond BRICs ETF

Frontier markets such as Qatar are now eligible for inclusion in the NYSE Arca-listed EGShares Beyond BRICs ETF (BBRC).

Launched in August 2012, the fund previously tracked the Indxx Beyond BRICs Index, an index which only includes emerging market stocks.

The FTSE Beyond BRICs Index generally has 75% exposure to companies in more developed emerging markets (excluding Brazil, Russia, India, China, South Korea and Taiwan) and 25% exposure to companies in frontier markets, which are less developed.

As defined by FTSE, frontier markets include countries such as Bangladesh, Bulgaria, Jordan, Kenya, Nigeria, Qatar, Sri Lanka, and Vietnam.

While the index is free-float market capitalization-weighted, it addresses potential concentration issues by including diversification parameters such as position and country caps, as well by liquidity-ranking the frontier markets company exposure.

Commenting on the transition, Marten Hoekstra, CEO of EGA, said: “BBRC seeks to provide investors with an integrated developing market core holding that shifts toward the less mature emerging and frontier markets and away from where much growth has already taken place. Beyond BRIC economies offer greater portfolio diversification to BRIC-heavy portfolios and, in our view, represent the next wave of growth in developing market investing.”

Jonathan Horton, President of FTSE North America and Head of FTSE’s ETP Service Unit, added: “We are delighted to have had the opportunity to work with Emerging Global Advisors to expand the BBRC offering to include frontier markets. Tradability, transparency and strong governance are at the core of our index design. FTSE continues to offer a holistic solution for ETF issuers seeking to provide diverse investment opportunities in both emerging and frontier markets.”

The fund is listed on the NYSE Arca and has an expense ratio of 0.85%.

Tags: , , , , ,

Leave a Comment

More in Equities
S&P IndiGuggenheim BRIC ETF (EEB) transitions to “more appropriately weighted” indexces launches dividend-focused BRIC High Yield Index
Guggenheim BRIC ETF transitions to “more appropriately weighted” index

Guggenheim Investments has announced that the Guggenheim BRIC ETF (EEB) will change its benchmark index to the BNY Mellon BRIC Select DR Index,...

First Asset rolls out tactical rotation, low vol and multi-factor ETFs
First Asset launches US value and US momentum ETFs on TSX

First Asset has launched two new factor-tilted equity ETFs – the First Asset Morningstar US Momentum Index ETF (YXM) and First Asset Morningstar...