Source has launched three exchange-traded funds providing single emerging country exposure: MSCI Brazil, MSCI China and MSCI India Source ETFs.
The ETFs complement to the existing Source emerging markets offering, which includes the MSCI Emerging Markets Source ETF and the RDX (Russia) Source ETF.
Investors can now gain exposure to broad emerging markets as well as each of the individual BRIC countries through the use of Source ETFs.
In the current environment of low rates and uncertainty for G7 countries, investors continue to turn to markets with relatively stronger economic and corporate earnings growth potential. Emerging markets have been one of the main beneficiaries of this shift, with net inflows in European emerging markets ETFs reaching nearly USD10bn this year and total assets outstanding increasing to USD44bn as at end of November.
Ted Hood, chief executive of Source, says: “We are excited to provide investors with a compelling and growing range of emerging markets products. Investors can now gain exposure to all BRIC countries as well as to broad emerging markets while benefiting from the efficiencies of Source’s ETFs, which offer limited counterparty exposure and outstanding trading liquidity.”
Each ETF tracks the total return version of its MSCI underlying index. The MSCI Brazil and MSCI China Source ETFs each have 0.65 per cent annual management fee and the MSCI India Source ETF has a management fee of 0.85 per cent per annum. These new products trade in USD on the London Stock Exchange.
