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EG Shares Plans Payout And Resources ETFs

Olly Ludwig

Emerging Global Advisors, the New York-based exchange-traded fund firm focused solely on emerging markets investment strategies, filed regulatory paperwork detailing plans to bring to market two new equities ETFs—one focused on companies with growing payouts; the other on producers of natural resources.

The filing unveiling plans for the EGShares Emerging Markets Dividend Growth ETF and the EGShares Emerging Markets Natural Resources ETF was generally scant on details. For example, not only did the company not reveal the funds’ tickers and proposed annual expense ratios, it also didn’t say what indexes the funds would be based on.

The filing describing the two funds is consistent with a turn the company has made since its splashy 2009 debut that was characterized by bringing to market many strategies that in some ways were too specific in geography and theme for investors still getting comfortable with broad ETFs such as the iShares MSCI Emerging Markets Index Fund (EEM).

Since then, Emerging Global has tended to focus on strategies that encompass all the various developing markets, perhaps packaged in themes that are resonant in the broader investment markets. The $886 million EGShares Emerging Markets Consumer ETF (ECON) is the ultimate example of this shift, and it now commands almost 75 percent of all the firm’s assets.

The filing did say both the payout fund and the resources funds will be able to own locally traded shares as well as American depositary receipts and global depositary receipts.

Emerging Global has 22 funds with a total of $1.211 billion in assets under management, according to IndexUniverse’s daily ETF League Table .


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