Global X To Add Emerging & Frontier ETF To Its Lineup

by on September 6, 2013

Though U.S. equities finally pushed higher this week, Wall Street concerns continued to rise as the seemingly imminent U.S.-led intervention in Syria weighed heavily on the markets. On Wednesday, the Senate backed President Obama’s request to strike Syria, bringing the U.S. one step closer to more military action in the Middle East. Meanwhile, investors turned their focus to the Federal Reserve’s “beige book,” which showed the U.S. economy growing at a “modest to moderate” pace in July and August, fueled by consumer spending on housing and cars [see see The Best (And Worst) Performing ETFs For Every Quarter].

On the ETF front, it has been a relatively quiet week with no new funds hitting the street, though one popular issuer did file regulatory paperwork to beef up its popular ETF lineup.

Global X filed for an intriguing emerging and frontier market ETF:Warsaw, Poland

  • Next Emerging & Frontier ETF (EMFM): According to the SEC filing, the fund will track the Solactive Next Emerging & Frontier Index. EMFM will invest at least 80% of its total assets in the securities of the underlying index and in ADRs and GDRs domiciled in the “next” emerging markets. These “next ” markets are defined as emerging economies beyond the BRICs (Brazil, Russia, India, and China) and beyond the most developed of the “emerging” economies, such as South Korea and Taiwan. Currently, the underlying index invests in roughly 200 individual securities domiciled in several different countries, including Argentina, Bangladesh, Chile, Gabon, Kazakhstan, Kenya, Mongolia, Philippines, Poland, Qatar, Slovakia, and many others [see Single Country ETFs: Everything Investors Need To Know].

In other ETF news, Deutsche Bank’s new China A-Shares ETF looks to be ready launch in the near future. The db X-trackers Harvest China Fund (ASHR) will track the CSI 300 Index, which invests in 300 of the most liquid stocks in the Chin A-share market. A-shares are equity securities issued by companies incorporated in mainland China and are denominated and traded in renminbi. The unique exposure will come with a hefty price tag of 90 basis points.

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Disclosure: No positions at time of writing.