- VelocityShares Emerging Markets Depositary Receipt ETF (EMDR)
- VelocityShares Russia Select Depositary Receipt ETF (RUDR)
- VelocityShares Emerging Asia Depositary Receipt ETF (ASDR)
Lastly, there is ASDR, which like the other two VelocityShares funds, has plenty of competition, in this case from the iShares MSCI Emerging Markets Asia ETF ( EEMA). Not surprisingly, ASDR's largest sector weighting is technology, but the sector's weighting of 43% is greater than in EEMA. ASDR has midteen weightings in telecom, energy and financials. EEMA has a more balanced 26% in financials and 23% in tech. South Korea is the largest country in ASDR, at 34% of the fund, followed by 30% for China and 17% for Taiwan. The thing to be careful with here is ASDR's 21% allocation to Samsung. A loss in competition, real or perceived, to Apple ( AAPL) would be devastating to ASDR, but not for EEMA, which has only a 6.5% weighting for Samsung.
The issue with these funds is that they don't bring anything new to the table for investors. As mentioned, ASDR has competition from EEMA, which only has $64 million in assets and rarely trades more than 20,000 shares. The low asset level and limited volume raises a reasonable doubt whether there is room for EEMA, let alone a second fund such as ASDR.