NEW YORK--(BUSINESS WIRE)--Emerging Global Advisors (EGA) today announced that its EGShares Beyond BRICs ETF (Ticker:BBRC), the first and largest emerging markets (EM) Beyond BRICs exchange-traded fund (ETF), has surpassed $250 million in assets after starting the year at $22 million. The fund’s performance has also been strong, up 11.26% year-to-date as of August 5, 20141, compared to 7.74% for the MSCI Emerging Markets Index.
BBRC, which launched in August 2012, transitioned to the FTSE Beyond BRICs Index in October 2013, when it added 25% exposure to frontier markets including Qatar, Oman, Kenya, Nigeria, Sri Lanka and Vietnam. The frontier market exposure is liquidity-ranked in order to address the liquidity challenges in frontier market equities. The remaining 75% of the fund provides exposure to 12 emerging markets, excluding the BRICs, South Korea and Taiwan.
Smaller and less mature emerging market and frontier markets, those that operate "Beyond the BRICs", have historically offered lower volatility and higher risk-adjusted returns than the whole of emerging markets.2 Investing in these markets also may offer portfolio diversification potential as correlations between the U.S. and BRIC equity markets have increased in recent years while those "Beyond BRIC" markets remain relatively less correlated – an important consideration for asset allocation among investors.
“In our view, smaller or less mature emerging and frontier markets represent important growth within emerging markets, and they have offered stronger growth and diversification characteristics than mainstream emerging market indices today,” said Marten Hoekstra, CEO of EGA. “The inflows BBRC has seen this year demonstrate developing investor interest in targeting smaller, less mature economies.”
“Frontier markets have unique characteristics that make them very attractive to investors,” said Nicholas Smithie, Chief Investment Strategist at EGA. “However, given liquidity challenges in the market, investors face a trade-off between a diversified frontier markets portfolio and daily liquidity. A liquidity-based strategy can provide investors with frontier exposure in a daily-traded vehicle." Through BBRC’s liquidity ranking and market capitalization weighting of its 25% frontier markets exposure, the fund may offer a solution to these challenges.
For more information on BBRC, please visit egshares.com/BBRC.
Performance History (As of 6/30/14)
|Total Returns (Net Asset Value)||4.14%||7.52%||7.96%||5.69%|
|Total Returns (Market Price)||3.64%||6.55%||8.40%||5.86%|
*Reflects Indxx Beyond BRICs Index through October 25, 2013; FTSE Beyond BRICs Net of Tax Index USD Index thereafter.
Performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than the original cost. Current performance data may be higher or lower than actual data quoted. For the most current month-end performance data please call + 1 888 800 4347.
Market price returns are based on the midpoint of the bid/ask spread at 4 pm ET and do not represent the returns an investor would receive if shares were traded at other times.
About Emerging Global Advisors (EGA)
Emerging Global Advisors (EGA) is an emerging markets asset manager that employs a disciplined, rules-based process rooted in research and portfolio strategy designed to generate alpha in emerging and frontier markets. EGA is the investment advisor to the EGShares exchange-traded funds. For more information, please visit emergingglobaladvisors.com.
1 Based on total returns of BBRC net asset value.
2 Source: MSCI, Morningstar data as of June 30, 2014.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Fund before investing. To obtain a prospectus containing this and other important information, please call +1 888 800 4347 or visit EGShares.com to view or download a prospectus. Read the prospectus carefully before investing.
Emerging market investments 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. The value of an investment denominated in a foreign currency could change significantly as foreign currencies strengthen or weaken relative to the U.S. dollar.
This Fund is non-diversified and, as a result, may have greater volatility than diversified-funds. This Fund will concentrate its investment in issuers of one or more particular industries to the same extent that the underlying index. Concentration risk results from maintaining exposure to issuers conducting business in a specific industry. In certain circumstances, the Fund might not be able to dispose of certain holdings quickly or at prices that represent true market value preventing them from tracking the underlying index. As an ETF, fund shares are not individually redeemable securities. There is no assurance that an active trading market for fund shares will develop or be maintained. Diversification does not ensure a profit or eliminate the risk of experiencing a loss.
Small-cap and mid-cap companies generally will have greater volatility in price than the stocks of large companies due to limited product lines or resources, or a dependency upon a particular market niche.
The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI Parties”) expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages.
© 2014 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
ETF shares are not individually redeemed and owners of the shares may acquire those shares from the Fund and tender those shares for redemption to the Fund in Creation Units only, typically consisting of aggregations of 50,000 shares.
EGShares Funds are distributed by ALPS Distributors, Inc. EGA, keating/co and ALPS Distributors, Inc. are unaffiliated entities.
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EGS001999 | Expires 11/15/2014