U.S. Markets closed

Global X Plans 2 Broad Emerging Market ETFs

Olivier Ludwig

Global X, the New York-based exchange-trade fund firm known for its developing-market strategies, filed with the Securities and Exchange Commission to market two broad emerging markets equity ETFs organized around value and growth styles.Global X Russell Emerging Markets Growth ETF and the Global X Russell Emerging Markets Value ETF are based on the Russell Emerging Market MegaCap Value Index and the Russell Emerging Market MegaCap Growth Index, respectively, the filing said.The proposed ETFs are Global X’s first broad-based funds that will invest in securities in different developing countries. The company, whose assets have more than quadrupled this year, now has $650.26 million under management year, didn’t specify countries in the filing. It has six China funds organized around sectors, three Brazil funds and a single Colombia fund.Emerging markets have been a bright spot since the market crash of 2008-2009. Unlike developed nations, which are grappling with huge loads of debt and aging populations as they climb out the worst downturn since the 1930s, most developing nations have relatively little debt, young populations and are growing. Investors have taken note. The broad-based Vanguard MSCI Emerging Markets ETF (NYSEArca:VWO - News) has been the single most popular U.S. ETF this year, gathering $13.32 billion through September, according to data compiled by IndexUniverse.com.Global X also didn’t specify trading symbols or expense ratios of the two planned ETFs in the filing, which was dated Oct. 28.

Permalink | © Copyright 2010 Index Publications LLC. All rights reserved