Old Mutual, a name long associated with mutual funds, has entered the ETF arena with today’s (12/08/2009) launch of GlobalShares FTSE Emerging Markets Fund (GSR). In an acknowledgement that it is already a crowded field, and taking a cue from Schwab that it needed to be noticed, the firm will cap expenses at 0% until January 31, 2010. At that time, expenses will be capped at 0.39% for the following two years.
The company expects to offer a range of exchange traded index funds, sold as GlobalShares. The investment adviser for GlobalShares is Old Mutual Global Index Trackers (Pty) Limited.
GSR is a diversified emerging markets ETF, of which there are already 10 listed for trading in the US. However, it is the first to be based on the FTSE Emerging Markets Index. The index has more than 700 constituents, but the fund will attempt to mimic that performance with 294 stocks. The largest country allocations include Brazil 20.4%, China 18.4%, Taiwan 12.1%, India 11.6%, South Africa 9.2%, Russia 7.0%, and Mexico 5.7%.
Additional information can be found on the new GlobalShares website and the GSR fact sheet.
Disclosure covering writer, editor, publisher, and affiliates: 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.