In the latest development in the ETF industry, Emerging Global Advisors LLC last week launched two new ETFs that track specific sectors in emerging markets. The new funds are based on the Dow Jones Emerging Markets Sector Titans indices. The two new funds are:
- EGS Emerging Markets Energy Fund (EEO): Tracks the 30 largest oil and gas companies based in emerging markets. EEO’s holdings are in 13 different countries, with Russia, India, China, and Brazil comprising the largest percentages.
- EGS Emerging Markets Metals & Mining Fund (EMT): Tracks the 30 largest metals and mining companies in emerging markets. EMT holds companies in nine countries, with South Africa and Brazil representing the largest interests.
CEO Robert Holderith, formerly a ProShares executive, indicated that Emerging Global Advisors plans to eventually launch a total of 12 funds, one for each of the 11 Dow Jones Emerging Markets Sector Titans indices, plus a composite index. Expense ratios for both of the new funds are reported to be 0.85%.