BlackRock lists EM consumer growth and US quality income ETFs on LSE

Jun 12th, 2014 | By | Category: Equities

BlackRock, the parent of exchange-traded funds giant iShares, has listed two new ETFs on the London Stock Exchange: the iShares MSCI Emerging Markets Consumer Growth UCITS ETF (CEMG) and the iShares MSCI USA Dividend IQ UCITS ETF (QDIV).

BlackRock lists EM consumer growth and US quality income ETFs on LSE

Tom Fekete, Head of Product Development for iShares in EMEA.

The ETFs, both of which are linked to MSCI indices, provide investors with access to two popular equity themes: emerging markets consumer growth and quality equity income.

The iShares MSCI Emerging Markets Consumer Growth UCITS ETF (CEMG) aims to capture opportunities arising from evolving spending patterns by emerging market consumers. The fund invests in companies that derive a high or growing proportion of their revenue from this consumer spending. The fund includes developed and emerging market companies in the consumer staples, consumer discretionary healthcare, industrial, information technology and telecoms sectors.

The iShares MSCI USA Dividend IQ UCITS ETF (QDIV) invests in US companies that target higher-than-average dividend yields. Securities are screened according to their earnings quality and to ensure that the dividends they pay are both sustainable and persistent over time. The fund aims to provide investors with access to high quality income streams.

Tom Fekete, Head of Product Development for iShares in EMEA, commented: “Investors are increasingly complementing their broad equity allocations with targeted funds that track specific sectors and themes. ETFs are an ideal way to achieve this investment mix as they provide quick and easy access to niche, as well as broad, exposures in a cost efficient manner.”

He added: “We’re starting to see a shift in sentiment towards emerging markets and the growing consumption of the middle classes is creating a compelling investment opportunity. Equally UK and European investors continue to need income-generating assets, and the high-quality dividends being issued by many US companies can offer a solid source of diversified income.”

Both funds are physically replicating ETFs that purchase and hold the underlying securities. CEMG has a total expense ratio (TER) of 0.60% and QDIV has a TER of 0.35%.

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