It is important to note that as of Feb. 22, a U.S. dollar money market account, Brown Brothers Sweep, commanded a substantial percentage of ASEA's index. In speaking with a Global X representative, however, I was informed that this was only a temporary position. I will be keeping a close watch on ASEA over the next few days to see how the fund's underlying holdings are altered.
ASEA and AND are two attractive new Asian and Latin American emerging market options that internationally minded investors will want to keep on their radars. However, for now I urge investors to use caution before diving in. As with any new product, these two funds will likely take time to gain steam and in the meantime, investors will be vulnerable to illiquidity and volatility.
Written by Don Dion in Williamstown, Mass.