Moving into emerging market equities space, VelocityShares , an exchange traded note provider known for its inverse and leveraged futures-related products, launched three exchange traded funds that track developing economies.
According to a press release, VelocityShares launched three emerging market depositary receipt ETFs: VelocityShares Emerging Market DR ETF (NYSEArca:EMDR) , VelocityShares Emerging Asia DR ETF (NYSEArca:ASDR) and VelocityShares Russia Select DR ETF (NYSEArca:RUDR) . Each fund has a 0.65% expense ratio.
Depositary receipts are a type of financial instrument issued by a bank that represent a foreign company’s shares and are traded on a local stock exchange. Depositary receipts help make it easier for investors to access foreign companies. DRs issued by U.S. banks are known as ADRs. Since ADRs are traded on a U.S. exchange, the securities are subject to U.S. registration and disclosure requirements. [iShares: All About Emerging Market ETFs]
“As investors look to further diversify their portfolios there is increased interest in emerging market equities, and American Depositary Receipts (“ADRs”) and Global Depositary Receipts (“GDRs”) enable investors to access emerging market equities with the comfort of developed market securities regulation.” Nick Cherney, Chief Investment Officer and co-founder of VelocityShares, said in the press release.
The Emerging Market DR ETF EMDR’s top holdings include Samsung Electronics 10.0%, Taiwan Semiconductor 3.9%, China 3.5%, Gazprom 3.1% and Itau Unibanco 2.5%.
Sector allocations include oil & gas 21.2%, tech 20.9%, financials 16.9%, telecom 12.0%, materials 10.6%, consumer goods 5.6%, industrial 4.6%, consumer services 4.2%, utilities 3.4% and health care 0.6%.
Country allocations include Brazil 20.9%, S. Korea 16.7%, Russia 14.9%, China 14.8%, Taiwan 8.2%, India 7.1%, Mexico 6.7%, S. Africa 2.6% and Chile 2.8%.
The Emerging Asia DR ETF ASDR’s top holdings include Samsung Electronics 21.1%, Taiwan Semiconductor 8.2%, China Mobile 7.5%, CNOOC Ltd. 4.0% and Hon Hai Precision Industry 3.6%.
Sector allocations include oil & gas 13.8%, tech 43.4%, financials 11.9%, telecom 14.1% materials 5.5%, consumer goods 0.5%, industrials 5.5%, consumer services 2.7%, utilities 1.4% and health care 1.2%.
Country allocations include S. Korea 34.9%, China 30.9%, Taiwan 17.2%, India 14.8%, Indonesia 1.5% and Philippines 0.8%.
The Russia Select DR ETF RUDR’s top holdings include Gazprom 21.1%, Sberbank 14.1%, Magnit OJSC 4.4$, Novatek 4.3% and Surgeneftegaz 4.3%.
Sector allocations include oil & gas 43.1%, tech 1.4%, financials 17.6%, telecom 12.4%, materials 12.4%, industrials 4.4%, consumer services 6.1%, utilities 1.5% and health care 1.2%.
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Max Chen contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.