Global X, the New York-based ETF issuer known for its suite of commodities, income and international funds, could introduce an ETF that would offer investors combination exposure to both emerging and frontier markets under the umbrella of one fund.
The Global X Next Emerging & Frontier ETF, if it comes to market, will trade on the New York Stock Exchange under the ticker “EMFM”and track the Solactive Next Emerging & Frontier Index via American depositary receipts (ADRs) and global depositary receipts (GDRs), reports Hung Tran for Index Universe.
The Solactive Next Emerging & Frontier Index excludes the BRIC nations as well as South Korea and Taiwan, which are viewed as highly developed emerging markets. EMFM will have exposure to Argentina, Bangladesh, Chile, Colombia, Czech Republic, Egypt, Gabon, Georgia, Hungary, Indonesia, Kazakhstan, Kenya, Kuwait, Laos, Malaysia, Mauritius, Mexico, Mongolia, Namibia, Nigeria, Oman, Pakistan, Panama, Papua New Guinea, Peru, Philippines, Poland, Qatar, Slovakia, Tanzania, Thailand, United Arab Emirates and Vietnam, as well as South Africa and Turkey, according to Index Universe.
The idea of combination emerging/frontier markets ETF is not new. While the Guggenheim Frontier Market ETF (FRN) is heavily allocated to emerging markets, the fund does feature exposure to nations classified as frontier such as Argentina and Nigeria.
Last week, EGShares said its EGShares Beyond BRICs ETF (BBRC) will drop the Indxx Beyond BRICs Index in favor of the FTSE Beyond BRICs Index, a move that will allow BBRC to expand its lineup to as many as 75 stocks from 50 along with allowing for the inclusion of frontier markets. [BRIC ETF to Get More BRIC Feel]
Global X is no stranger to frontier markets ETFs. The firm is the issuer behind the only single-country Argentina and Nigeria ETFs as well as the first multi-country ETF focused on central Asia. The Global X Nigeria Index ETF (NGE) and the Global X Central Asia & Mongolia Index ETF (AZIA) debuted in April. [Global X Launches Central Asia, Nigeria ETFs]
Global X is also the firm behind the first Colombia ETF and the only Greece ETF listed in the U.S. The Global X FTSE Colombia 20 ETF (GXG) has almost $147 million in assets under management.
Global X FTSE Colombia 20 ETF
ETF Trends editorial team contributed to this post.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. 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.