Emerging Global Advisors (EG Advisors), the first dedicated emerging markets sector exchange-traded fund provider, is celebrating its one-year anniversary this week. The firm has grown to more than $100 million in assets and currently manages six ETFs, with others scheduled for launch later this year. Established May 22, 2009, EG Advisors provides ETFs tied to stock indices of developing economies around the world. “There’s been so much change in the emerging market investment landscape in such a short time that an asset class that was once an afterthought is now the foremost consideration in many investment portfolios, institutional and retail alike,” said Robert Holderith, president and CEO of Emerging Global Shares. “We believe market dislocations in the US and other developed countries have led investors to the inescapable conclusion that alpha generation has to come from emerging nations, many of whom are spending hundreds of billions of dollars on their infrastructure build-outs. 1 These are the markets in which we invest and we think this puts us on the front lines of what has shaped up to be tremendously exciting investment opportunities.” In addition to their ETF lineup, EG Advisors also remains committed to providing investors with cutting-edge proprietary research and analysis. The company follows a focused, hands-on research approach, enabling it to gain intelligence into newer, less-researched emerging markets. The research from EG Advisors helps provide investors with an investment rationale for allocating emerging market exposures to their portfolios, and also offers market-by-market analysis on risk, and political and economic perspectives, among others. EG Advisors’ research has also helped lead the company’s product development initiatives to new areas like its recently-launched country-specific infrastructure ETFs. “EG Advisors’ goal has always been to convert our knowledge and analytical expertise into actionable opportunities for investors,” said Richard Kang, CIO and head of research at EG Advisors. “If there’s one thing investors have learned over the last 18 months it’s that too much exposure to domestic markets may pose a greater risk than previously assumed. We believe emerging markets, such as Brazil, China and India, are witnessing rates of economic growth that investors simply can’t find in the developed world. We expect these economies, along with their peers, to be the locomotive powering the global economy for many years to come.”
EG Shares launched in 2009 with two global sector-specific funds based on the Dow Jones Emerging Markets Sector Titans Indexes. The firm now manages six funds, including the Emerging Global Shares China Infrastructure Fund (CHXX), Emerging Global Shares Brazil Infrastructure Fund (BRXX), Emerging Global Shares Emerging Markets Metals & Mining Fund (EMT), Emerging Global Shares Emerging Markets Energy Fund (EEO), Emerging Global Shares Emerging Markets Financials Fund (EFN) and the Emerging Global Shares Emerging Markets Titans Composite Index Fund (EEG). All are listed on the NYSE Arca exchange.About Emerging Global Advisors LLC Emerging Global Advisors LLC is an independent investment advisory firm and the sponsor of the Emerging Global Shares family of Exchange-Traded Funds. The firm's thematic research focuses primarily on investor opportunities in the emerging markets. More information on the firm and its ETF products can be found at www.egshares.com. The Emerging Global Shares Exchange-Traded Funds are distributed by ALPS Distributors, Inc. Robert Holderith and Richard Kang are registered representatives of ALPS Distributors, Inc. Carefully consider the Fund's investment objectives, risk factors and charges and expenses before investing. This and other information can be found in the Funds' prospectuses, which may be obtained by calling 1-888-800-4EGS (4347) or by visiting the fund's website www.egshares.com to view or download a prospectus. Read the prospectus carefully before investing. Investing involves risk, including possible loss of principal. ETFs are subject to risk similar to those of stocks including those regarding short-selling and margin account maintenance. ALPS Distributors, Inc. is not affiliated with Emerging Global Advisors, LLC. Emerging market investments do 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.
1 The term alpha refers to the abnormal rate of return on a security or portfolio in excess of what would be predicted by an equilibrium model like the capital asset pricing model. Source: www.investopedia.com