IndexIQ, a leader in developing index-based commodity, international, and liquid alternative investment solutions, is launching the IQ Emerging Markets Mid Cap ETF (Ticker: EMER) on the NYSE Arca platform this morning, it was announced today.
EMER is the first Exchange-Traded Fund (ETF) dedicated to providing access to mid-cap Emerging Market equities and will do so via a “pure play” approach, meaning that all of the equities included in the fund’s underlying index will be listed on an exchange in a less developed market in the Americas, Europe, Asia, Africa and the Middle East.
The fund will be diversified across both Emerging Market countries and industry sectors. As of May 31, 2011, the fund’s underlying index contained exposures to Consumer Discretionary (18.69 percent), Financials (18.10 percent), Industrials (15.88 percent), Materials (13.28 percent), Technology (9.15 percent) and more.
EMER seeks to replicate, before fees and expenses, the performance of the IQ Emerging Markets Mid Cap Index (IQMDEMG), a float-adjusted market cap-weighted index that is intended to track the overall performance of the mid capitalization sector of publicly traded companies domiciled and primarily listed on an exchange in the Emerging Markets. EMER is intended to provide pure-play exposure to this sector either as a standalone vehicle or used in combination with large- and small-cap Emerging Market offerings to create a broad-based portfolio.“Just as it is important for investors to diversify across capitalization spectrum in their domestic portfolios, the same holds true for investors allocating to emerging markets,” said Adam Patti, CEO of IndexIQ. “Prior to EMER, only the large- and small-cap sectors of the Emerging Markets landscape were available to ETF investors. That changes today as we bring out this first-of-its-kind product to allow investors to access the growth potential of the Emerging Market mid-cap sector in a highly-liquid, highly-transparent way.”