iShares launches new emerging markets infrastructure ETF.
iShares, the world's largest exchange traded funds (ETFs) provider has announced the start of trading of the iShares S&P Emerging Markets Infrastructure Index Fund. The launch occurs at a time when ETF net flows have been dominated by emerging markets ETFs. In May, emerging market ETFs' net flows captured approximately $6 billion of the total $14.9 billion in ETF net flows.
"Infrastructure is a rapidly growing investment theme that investors want to access. Global infrastructure spending is estimated to be $35 trillion in the next two decades due to a particular strain and need for infrastructure investment in the emerging economies," said Michael Latham, iShares co-CEO.
Trading volumes in the iShares emerging markets funds have also been strong with more than 16 billion shares traded in 2009 (Jan-May), a 119 per cent increase compared with the same period last year.
"Financial advisors are investing in emerging market iShares Funds to access assets that have low historical correlations with equity and fixed income to further diversify their clients' portfolios over the long term. In addition, the currency exposure between the U.S. and emerging markets provides an additional layer of diversification benefits," Latham said.
This most recent offering of iShares in the US complements its pre-existing iShares S&P Emerging Market Infrastructure fund domiciled in Dublin, Ireland.
iShares S&P Emerging Markets Infrastructure Index Fund
The fund, with an annual expense ratio of 0.75 per cent, is designed to track the S&P Emerging Markets Infrastructure Index, which includes 30 of the largest publicly listed companies in the infrastructure industry and with majority of revenues derived from emerging market operations.
The index includes three sub-sectors: energy, transportation and utilities. As of May 29, 2009, the index was comprised of companies in the following markets: Argentina, Brazil, Chile, China, the Czech Republic, Egypt, Malaysia, Mexico, South Korea and the United Arab Emigrates. As of May 29, 2009, each of the underlying constituents had a minimum market capitalisation of $250 million.
2009 CPI Financial. All rights reserved.
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|Date:||Jul 12, 2009|
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