Emerging Global to Introduce 2 New EM ETFs Wednesday

Emerging Global Advisors, the New York-based ETF sponsor known for its suite of emerging markets funds, will introduce two new ETFs tracking developing nations on Wednesday August 15. The two new ETFs will be the first new funds launched by Emerging Global Advisors since the EGShares India Consumer ETF INCO debuted in August 2011. The EGShares Beyond BRICs ETF BBRG will track the INDXX Beyond BRICs Index, which is home to 50 companies. Companies from the BRIC quartet of Brazil, Russia, India and China are excluded from the index and will not be featured in the ETF. The fund "may not invest more than 15 percent of its net assets in securities which it cannot sell or dispose of in the ordinary course of business within seven days at approximately the value at which the fund has valued the investment," according to the fund's prospectus. BBRG will charge an expense ratio of 0.85 percent, which is in-line with most other EGShares products. Constituent countries include: Chile, Columbia, Czech Republic, Egypt, Hungary, Indonesia, Jordan, Kuwait, Malaysia, Mexico, Morocco, Peru, the Philippines, Poland, Slovenia, South Africa, Thailand and Turkey. The other new ETF being introduced by the firm is the EGShares Emerging Markets Domestic Demand ETF EMDD. That fund will track the INDXX Emerging Markets Domestic Demand Index. The index is cap-weighted and comprised of 50 emerging market companies in sectors deemed to have more exposure to local markets than the MSCI Emerging Markets Index. That is the same index tracked by the Vanguard MSCI Emerging Markets ETF VWO and the iShares MSCI Emerging Markets Index Fund EEM. The universe for for the INDXX Emerging Markets Domestic Demand Index is defined as all publicly traded stocks domiciled in Emerging Market countries, such as Brazil, Chile, China, Columbia, Czech Republic, Egypt, Hungary, India, Indonesia, Jordan, Kuwait, Malaysia, Mexico, Morocco, Peru, the Philippines, Poland, Russia, Slovenia, South Africa, Thailand and Turkey, according to the fund's prospectus. EMDD will also charge an expense ratio of 0.85 percent. Emerging Global had 19 ETFs with $692 million in assets under management at the end of July, according to data from the ETF Industry Association.