Emerging Global Advisors, a provider of sector-based emerging markets exchange-traded funds, has added the Dow Jones Emerging Markets Financial Titans Index Fund to its line-up.
“Financial services is an increasingly important component of the emerging markets success story,” says Robert Holderith, chief executive officer at Emerging Global Advisors. “The companies in this sector, through their ability to provide liquidity, will play an increasingly vital role in driving domestic growth within these economies. Our new ETF will provide the only sector-based exposure to this industry.”
Dow Jones Emerging Markets Financial Titans Index Fund seeks to track, before fees and expenses, the performance of the Dow Jones Emerging Markets Financial Titans 30 Index, which includes 30 of the largest emerging markets financial companies in banking, life insurance and non-life insurance, real estate investment and services, and financial services, among others.
The fund includes companies from ten different countries. As of 11 September 2009, the top five, with their respective weightings, are China (39.71 per cent), Brazil (22.88 per cent), India (13.21 per cent), South Africa (9.25 per cent), and Malaysia (3.96 per cent).
As of 11 September 2009, the top three holdings were Industrial & Commercial Bank of China (9.1 per cent), Itau Unibanco Holding (9.1 per cent) and China Life Insurance (8.5 per cent).
Stocks are selected to all Dow Jones Titans indexes based on ranking market capitalization, revenue, and net profit.
The fund is the fourth ETF to be introduced by Emerging Global Advisors, and joins the firm’s growing family of sector-based emerging markets funds that includes the Emerging Global Shares Dow Jones Emerging Markets Energy Titans Fund, the Emerging Global Shares Dow Jones Emerging Markets Metals & Mining Titans Index Fund, and the Dow Jones Emerging Markets Composite Titans Index Fund.
Emerging Global has registered a total of 12 emerging markets ETFs. Ten are sector-based, one covers the emerging markets metals and mining companies and the 12th is a broad based composite.