Thursday, November 14, 2013

Global X

Global X launched a new ETF last week that will focus on smaller countries that fall into the emerging and frontier markets. In essence, looking for the next group of BRIC countries.
The Global X Next Emerging & Frontier ETF (NYSEARCA:EMFM) is a basket of 200 stocks from 34 different developing countries. What makes EMFM unique is that it will not invest in the BRIC countries along with South Korea and Taiwan. By taking the approach it will have more assets to invest in countries that are often overlooked in portfolio construction.
Asia currently represents 38% of the portfolio, followed by Latin America at 23%, Eastern Europe at 19%, Africa at 14%, and the Middle East represents 6%. The financial and material sectors make up the largest portion of the portfolio with a total allocation of 37%.