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Emerging Global Advisors launches Emerging Markets Dividend Growth ETF


Emerging Global Advisors has launched the EGShares Emerging Markets Dividend Growth ETF, the first emerging markets (EM) dividend growth exchange-traded fund.

The fund aims to provide investors with a total return approach to investing in quality companies within the FTSE Emerging All Cap ex Taiwan Universe that have achieved consistent dividend growth over the past five years.
Dividend growth is an important investment theme among US investors. Rapid growth of EM-headquartered companies has created a potential opportunity for dividend growth investors to obtain exposures in emerging markets. As a result of the maturation of many EM companies, more of them have initiated or increased dividend payouts, distributing a greater proportion of their profits to shareholders.
Dividends have been an important source of emerging market total return, contributing about one-third, and have sometimes been a factor in dampening portfolio volatility.
“Many emerging market-based multinational companies have demonstrated their ability to increase dividends,” says Marten Hoekstra, chief executive of Emerging Global Advisors. “We launched EMDG as an investment tool to enable dividend growth investors to implement their investment strategy in emerging markets and diversify dividend yield sources.”
This is the first time that FTSE has worked with Emerging Global Advisors, who join the long list of global ETF providers using FTSE indices.

Jonathan Horton, president of FTSE North America and head of FTSE’s ETP service unit, says: “We were delighted to have had the opportunity to work with Emerging Global Advisors as they expand their product suite. By placing tradability, representativeness and strong governance at the core of our index design and supporting index construction with a transparent country classification system, FTSE offers a holistic solution for ETF issuers seeking to provide new investment opportunities in emerging markets.”

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