This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

New Fund Targets Emerging Markets Middle Class Growth

That EMDD has no energy exposure is surprising, but most integrated oil companies are multi-national. For example there is news on a regular basis about the Chinese oil majors investing all over the world, including Africa and South America, which would conflict with the domestic demand theme of the fund.

The fund has 50 holdings and while Walmart de Mexico is likely to be familiar, most of the names will not. The EG Shares literature indicates that the index underlying the fund yields 2.62 which after accounting for the 0.85% fee means that the fund might yield 1.75%.

There are quite a few countries that are either not represented in EMDD or do not have enough weight in the fund to have any meaningful impact on returns. Countries omitted include Colombia, Poland and Turkey. Countries that are too small to influence the fund's performance include Chile and Thailand.

The countries that are omitted or simply have low weightings all have compelling stories and risk factors to sort out. But the biggest drawback to EMDD would appear to be the relatively large weightings to a handful of countries.

This is easily mitigated in the context of using EMDD as a core emerging market holding and filling in the gaps with smaller positions in individual stocks or narrower ETFs for segments not covered by EMDD. Lastly, given the relatively large weighting to Mexico it is important that anyone considering using this fund must be favorably disposed to investing in Mexico.

At the time of publication, the author held no positions in any of the stocks mentioned.

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $132.54 0.88%
FB $80.54 0.07%
GOOG $540.11 -0.44%
TSLA $247.73 0.86%
YHOO $43.48 -0.44%

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs