NEW YORK--(BUSINESS WIRE)--Emerging Global Advisors (EGA) today announced that its EGShares Emerging Markets Consumer ETF (Ticker: ECON), the first and largest emerging markets (EM) consumer exchange-traded fund (ETF), reached its three-year milestone this month.
“Emerging market consumer demand represents a key theme for investors and ECON is the largest and longest standing ETF to obtain that exposure.”
The growth of the EM consumer has been called "the biggest growth opportunity in the history of capitalism" as EM domestic spending is expected to reach $30 trillion annually by 2025 and EM consumers are expected to become the dominant force in the global economy.1 Investor demand has made ECON a vehicle of choice for accessing this growth and has become a long-term, strategic allocation for many equity growth portfolios.
“The sectors that benefit most from emerging market demographics trends tend to be underrepresented in conventional, broad-based emerging market benchmark indices, which are usually dominated by export sectors and banks,” said Marten Hoekstra, CEO of EGA. “Emerging market consumer demand represents a key theme for investors and ECON is the largest and longest standing ETF to obtain that exposure.”
Since its launch in 2010, ECON has seen significant growth, amassing $1.04 billion in assets as of August 30, 2013 and outperforming the MSCI Emerging Markets Index. Further demonstrating ECON’s investor appeal, the fund netted over $367 million in net new assets this year at a time when EM equity ETF assets overall have suffered more than $11.6 billion in net outflows.2
For more information on ECON, please visit egshares.com/ECON.
|Performance3||YTD||1-Year||Inception4 (Annualized)||Inception (Cumulative)|
|EGShares Emerging Markets Consumer ETF (NAV)||-1.95%||12.90%||9.64%||29.26%|
|EGShares Emerging Markets Consumer ETF (Market Price)||-3.12%||12.14%||9.38%||28.40%|
|Dow Jones Emerging Markets Consumer Titans 30 Index||-1.38%||14.11%||11.44%||37.86%|
|MSCI Emerging Markets Index||-9.57%||2.87%||-0.91%||-2.53%|
(Source: Bloomberg data as of 6/30/13; ECON inception date is 9/14/10)
Performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance data may be higher or lower than actual data quoted. For the most current month-end performance data please call + 1 888 800 4347.
The expense ratio for ECON is 0.85%. Effective April 1, 2013, EGA replaced the Fund’s fee and expense structure with a unified fee ("Unified Fee"). Under the Unified Fee, EGA pays all ordinary operating expenses of the Fund from EGA’s advisory fee.
1 McKinsey & Company. "Winning the $30 trillion decathlon: Going for gold in emerging markets." August 2012.
2 Source: Emerging Global Advisors data as of 8/30/13
About Emerging Global Advisors (EGA)
Emerging Global Advisors (EGA), the asset manager to the EGShares ETF offering, provides investors and institutions with the advanced beta tools they need to implement similar investment strategies in emerging markets as they do in developed markets. For more information, please visit egshares.com.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Fund before investing. To obtain a prospectus containing this and other important information, please call (888) 800-4EGS (4347) or visit www.egshares.com to view or download a prospectus online. Read the prospectus carefully before investing.
Emerging market investments involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles, from economic or political instability in other nations or increased volatility, and lower trading volume. This fund will concentrate its investments in issuers of one or more particular industries to the same extent that its Underlying Index is so concentrated and to the extent permitted by applicable regulatory guidance. Concentration risk results from maintaining exposure to issuers conducting business in a specific industry. Small cap and mid cap companies generally will have greater volatility in price than the stocks of large companies due to limited product lines or resources or a dependency upon a particular market niche. The value of an investment denominated in a foreign currency could change significantly as foreign currencies strengthen or weaken relative to the U.S. dollar.
Market price returns are based on the midpoint of the bid/ask spread at 4 pm ET and do not represent the returns an investor would receive if shares were traded at other times.
EGShares Emerging Markets Consumer ETF seeks to achieve its investment objective of total return by investing in the constituent securities of the Dow Jones Emerging Markets Consumer Titans 30 Index. The index is created to measure the stock performance of 30 leading emerging market companies in the consumer goods and consumer services industries as defined by the Industry Classification Benchmark (ICB). Stocks are selected to the index based on rankings by float-adjusted market capitalization, revenue and net profit.
Dow Jones Emerging Markets Consumer Titans 30 Index is an index that measures the stock performance of 30 leading emerging market companies in the Consumer Goods and Consumer Services Industries as defined by the proprietary classification system used by Dow Jones Indices. The EGShares Emerging Markets Consumer ETF tracks the Dow Jones Emerging Markets Consumer Titans 30 Index.
MSCI Emerging Markets Index is an index that is designed to measure the equity market performance in global emerging markets. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used to create indices or financial products. This report is not approved or produced by MSCI.
One cannot invest directly in an index.
MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any claims contained herein.
The EGShares Emerging Markets Consumer ETF ("the Fund") is distributed by ALPS Distributors, Inc. Emerging Global Advisors acts as the investment advisor to the Fund. ALPS and Emerging Global Advisors are unaffiliated entities.
Shares are not individually redeemed and owners of the shares may acquire those shares from the Fund and tender those shares for redemption to the Fund in Creation Units only, typically consisting of aggregations of 50,000 shares.
Marten Hoekstra is a registered representative of ALPS Distributors, Inc.
EGShares Funds are distributed by ALPS Distributors, Inc.
© Copyright 2013 Emerging Global Advisors, LLC - All Rights Reserved
EGS001431 Expires 11/15/2013