Bringing you live news and features since 2006 

First Trust launches First Trust Bloomberg Emerging Market Democracies ETF


First Trust Advisors has announced that it has launched a new ETF, the First Trust Bloomberg Emerging Market Democracies ETF. (EMDM)

The firm writes that the fund seeks investment results that correspond generally to the price and yield (before the fund’s fees and expenses) of an equity index called the Bloomberg Emerging Market Democracies Index.

The firm writes that the majority of global economic growth is expected to occur outside of the US in the next few years, particularly in emerging markets, according to data from the International Monetary Fund (“IMF”). Traditional emerging market benchmarks may have significant weight in countries whose governmental policies and living conditions may not reflect democratic views toward individual and collective freedoms.

“Concerns about the rule of law, political rights, and civil liberties have led many investors to avoid allocating to emerging markets,” says Ryan Issakainen, CFA, Senior Vice President and ETF Strategist at First Trust. EMDM aims to provide exposure to parts of the emerging markets segment where political rights and civil liberties are highly regarded. These countries must qualify as Electoral Democracies, a Freedom House designation that reflects the fact that a democratic electoral system requires not only fair balloting procedures and basic political competition, but also some respect for the rule of law and civil liberties, such as freedom of assembly. “By screening out countries that are not considered Electoral Democracies, we believe this ETF addresses many such concerns, while also providing exposure to the robust long-term growth potential of emerging markets stocks,” Issakainen says.

“Bringing new ideas to market is a principal focus area for Bloomberg Indices as we recognize the opportunity for unique benchmarks that address specific interests, such as values-based investing. We’re excited to see First Trust take one of these ideas forward to investors and launch an ETF with the Bloomberg Emerging Market Democracies Index,” says Dave Gedeon, Head of Index Product, Bloomberg Index Services Limited.

Latest News

In line with the report from Computershare this week which revealed the Aussie love of all things ETF, our non-North..
There were 10 new ETF offerings launched for the week, each with a distinct value proposition for investors.  Detailed below..
A summary of the Canadian ETF launches that occurred in November 2023...
ETF issuer Direxion has announced the results of their second annual Direxion Trader Sentiment Survey, conducted by the Harris Poll,..

Related Articles

Australian flag
A new report published by global financial services company Computershare has revealed key trends in the Australian ETF market during...
Eric Balchunas, Bloomberg Intelligence
ETFs will likely see an uptick of trillions in assets to their already strong flows over the next decade as...
Kim Gibb, Prescient Management Company
Prescient Management Company, an investment fund platform provider in South Africa, has launched the country’s first full-service, co-named platform for...
Thinking outside of the box
BlackRock has published its 2024 Thematic Outlook, entitled Three Key Themes to Get Investors Off the Sidelines....
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