Dow Jones Indexes has launched the Dow Jones Emerging Markets Consumer Titans 30 Index.
The index measures the performance of 30 leading consumer goods and consumer service companies in emerging markets.
The index is licensed to Emerging Global Advisors and will serve as a basis for an exchange-traded fund to be listed on NYSE Arca.
The ETF, called the EGShares Emerging Markets Consumer ETF, is the first emerging market ETF focused on consumer trends in the developing world.
“Consumer spending is a leading economic indicator,” says Michael A. Petronella, president, Dow Jones Indexes. “The Dow Jones Emerging Markets Consumer Titans 30 Index tracks the largest and most profitable consumer goods and consumer services companies in developing countries today. This allows investors to examine consumer spending in developing countries during the global economic recovery.”
“As the developed world transitions from a society of spenders to a more prudent one of increased savings, the emerging world is slowly moving in the other direction,” adds Richard C. Kang, chief investment officer and director of research, Emerging Global Advisors. “Although individually the emerging market consumer may have a smaller amount to spend, because of the size and youth of this demographic they are able to compensate for the massive structural changes happening in the developed world. This ETF is the first emerging market fund paying attention to this trend.”
The index is part of the Dow Jones Emerging Markets Sector Titans index series which consists of one composite index, ten industry indices as defined by the Industry Classification Benchmark and one customised index for metals and mining.