Bringing you live news and features since 2006 

iShares launches emerging markets small cap fund


BlackRock’s iShares Exchange Traded Funds (ETFs) business has launched the iShares MSCI Emerging Markets Small Cap Index Fund (nyse arca:EEMS). By adding the new iShares ETF, iShares complements its robust emerging market product suite and enables investors access to the next generation of emerging market growth.

"In the long-term, investors can look to emerging market small cap stocks as the driver of the next wave of emerging market growth," says Russ Koesterich, iShares Global Chief Investment Strategist at BlackRock. "In the short-term, emerging markets may be more defensively positioned than conventional wisdom might suggest.

"Because emerging market small cap stocks offer greater exposure to local consumer sectors –and those sectors are more tied to domestic demand than foreign demand — they should be better insulated from issues facing developed markets today."

Noel Archard, Head of US iShares Product at BlackRock, says: "With the new iShares Emerging Markets Small Cap ETF investors can efficiently access the next generation of small cap companies with 100% local exposure. By combining the new iShares Emerging Markets Small Cap ETF with the broadly diversified iShares MSCI Emerging Markets ETF, investors can gain access to 100% of the investable emerging market universe with no overlap in core holdings."

The iShares MSCI Emerging Markets Small Cap Index Fund is benchmarked to the MSCI Emerging Markets Small Cap Index, which is generally seen as the institutional index standard. It is a float-adjusted market cap weighted index that is rebalanced quarterly. The index’s top three country holdings as of July 31, 2011, are Taiwan (19.86%), Korea (17.35%) and China (16.46%). The top three country sector exposure weightings are consumer discretionary (17.09%), industrials (16.90%) and financials (16.59%).

Latest News

Morningstar has published a review of the European ETF market for the first quarter 2024, which finds that it gathered..
ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..
Calastone has published an ETF white paper which examines several of the processes that take place across the lifecycle of..
Adapting product lines to fit into changing methodologies and meet shifting demand is essential to remaining relevant in the industry..

Related Articles

Kristen Mierzwa, FTSE Russell
Index Investments Group (IIG), a division within index provider FTSE Russell, has extended its range of indices through two new...
US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms, such as Charles...
Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by