An ETF issuer offers efficient, liquid exposure to Emerging Emea


An ETF issuer  announces  the  launch of  the  FTSE  Emerging  EMEA  40 Source  ETF,  created  in  collaboration with  BofA Merrill  Lynch  and  designed  to  offer  efficient  and liquid exposure to the dynamic Emerging EMEA region…

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      As  investors  continue  to  seek opportunities  in  the global emerging markets, Emerging EMEA is an important and interesting component, covering key markets such as Russia, South Africa and Poland as well  as  the  rapidly  changing markets  of  the Middle  East  and North Africa. However,  achieving broad but efficient benchmark exposure  is  a  challenge: emerging markets are often  affected by  a lack of liquidity and operational challenges such as irregular dividend payments.

      Source  now  offers  exposure  to  this  region  via  the  FTSE  Emerging  EMEA  40  Index.  The  index was launched  in April 2011 and  is  calculated and managed by FTSE.  It comprises of  the 40  largest and most liquid stocks in the region. It is specifically designed to be liquid and tradable, while also being representative  of  emerging  EMEA  and  the  opportunities  it  presents.  Currently (1),  the  largest weightings are  to South Africa  (29%), Russia  (28%), Poland  (16%), Turkey  (11%), Hungary  (7%) and the  Czech Republic  (7%). Other  countries  eligible  for  inclusion  are  Egypt,  Israel, Morocco  and  the United Arab Emirates.

      “This  is  a  region  that’s  changing  incredibly  fast”,  said  Source  CEO  Ted  Hood.  “In  such  a  dynamic market,  it’s not  just a question of offering access. We need  to give  investors the ability  to trade  in and  out  quickly  and  efficiently”.  The  FTSE  Emerging  EMEA  40  Source  ETF  combines  liquidity  andtradability with efficient treatment of dividends, in a robust and transparent ETF vehicle.  

      “The  aim was  to  devise  a  product  that  gives  investors  liquid  and  cost  efficient  access  to  a  new, carefully constructed benchmark that correlates closely to other broad based indices,” said Jonathan Beebe, head of EMEA Equity Cash and Flow Derivatives Trading at BofA Merrill Lynch. “Essentially an Emerging Markets equivalent to the leading Eurozone benchmarks for investors, The FTSE Emerging EMEA 40 Source ETF is an important development which successfully combines the expertise of BofA Merrill Lynch, LSE, FTSE and Source for the benefit of investors.”

      The FTSE Emerging EMEA 40 Source ETF has a management fee of 0.60% per annum and is listed on the  London  Stock  Exchange.  Source  now  offers  a  truly  comprehensive  range  of  emerging market products, covering global, regional and single country exposure.   

      (1) 8 June 2011

      Product Name:  FTSE Emerging EMEA 40 Source ETF
      ISIN:  IE00B646J647
      Base / Trading Currency:  USD / USD
      Management Fee:  0.60 % per annum
      Listing:  London Stock Exchange
      Benchmark:  FTSE Emerging EMEA 40 Index
      Benchmark Bloomberg Ticker:  EMEA40CU Index
      UCITS eligible:  Yes
      Domicile:  Ireland

      The addition of  this new  ETF brings  Source’s product  range  to 94 across equity,  fixed  income  and commodity segments of the market. Source now has over US$8.5 BN in assets and has seen trading turnover  of  over  US$220  BN  since  launch  in  April  2009.  Source  continues  to  focus  on  delivering incremental value to European ETP  investors through a combination of enhanced indices, improved structuring  and  active  trading,  and  is  committed  to  delivering  ETFs  and  ETCs  with  unparalleled liquidity, increased transparency and reduced counterparty risk.

      Source: ETFWorld – Source

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