Global X yesterday (1/25/11) launched two new ETFs targeting the growth and value segments of emerging markets: Global X Russell Emerging Markets Growth ETF (EMGX) and Global X Russell Emerging Markets Value ETF (EMVX).
The underlying Russell indexes include only the largest stocks (MegaCaps) from the emerging markets universe. These are the first ETFs that attempt to separate stocks from the emerging market nations into growth and value buckets.
Global X Russell Emerging Markets Value ETF (EMVX) currently holds 82 stocks and seeks to track the Russell Emerging Markets MegaCap Value Index minus a 0.69% expense ratio. Additional information is located in the table below, the EMVX summary, the EMVX fact sheet (pdf), and the combined prospectus (pdf).
Global X Russell Emerging Markets Growth ETF (EMGX) currently holds 142 stocks and seeks to track the Russell Emerging Markets MegaCap Growth Index minus a 0.69% expense ratio. Additional information is located in the table below, the EMGX summary, the EMGX fact sheet (pdf), and the combined prospectus (pdf).
Comparison Table
| Global X Emerging Markets | Value | Growth |
|---|---|---|
| – Ticker | EMVX | EMGX |
| – Expense Ratio | 0.69% | 0.69% |
| – Number of Holdings | 82 | 142 |
| Sectors/Industries | ||
| – Consumer Discretionary | 5.3% | 4.8% |
| – Consumer Staples | 0.0% | 4.2% |
| – Energy | 45.4% | 13.0% |
| – Financials | 10.6% | 33.1% |
| – Materials & Processing | 11.4% | 17.0% |
| – Producer Durables | 2.9% | 1.3% |
| – Technology | 7.0% | 17.9% |
| – Utilities | 17.5% | 8.7% |
| Country Weightings | ||
| – Brazil | 19.9% | 20.8% |
| – China | 15.9% | 20.9% |
| – India | 0.8% | 11.8% |
| – Mexico | 0.5% | 6.0% |
| – Russia | 26.7% | 4.4% |
| – South Africa | 1.3% | 9.6% |
| – South Korea | 24.8% | 7.7% |
| – Taiwan | 7.4% | 10.1% |
| – Others | 2.7% | 8.7% |
| Top Holdings | ||
| – Petroleo Brasileiro SA Pref | 10.6% | |
| – Gazprom | 9.4% | |
| – Surgutneftegaz | 5.6% | |
| – China Mobile | 5.4% | |
| – Petro China | 4.0% | |
| – Vale SA Preferred | 3.7% | |
| – Taiwan Semiconductor | 3.7% | |
| – Samsung Electronics | 5.7% | 3.7% |
| – China Construction Bank | 3.3% | |
| – Vale SA | 3.1% | |
| – American Movil | 2.9% |
According to the press release (pdf) from Global X, the underlying value index outperformed the growth index for the 3-year period ending 11/30/10 by 10.0%. However, for the one-year period, the growth index outperformed the value index by 4.5%.
Disclosure covering writer, editor, and publisher: No positions in any of the securities mentioned. No positions in any of the companies or ETF sponsors mentioned. No income, revenue, or other compensation (either directly or indirectly) received from, or on behalf of, any of the companies or ETF sponsors mentioned.