Global X unveils two active emerging market ETFs

May 18th, 2023 | By | Category: Equities

New York-based Global X ETFs has converted two emerging market mutual funds, previously advised by its parent company Mirae Asset Global Investments, into actively managed ETFs.

Luis Berruga, CEO of Global X

Luis Berruga, CEO of Global X ETFs.

The $370 million Global X Emerging Markets Great Consumer ETF (EMC US) and $20m Global X Emerging Markets ETF (EMM US) are listed on NYSE Arca.

Each ETF comes with an expense ratio of 0.75% and is continuing to be sub-advised by Mirae Asset and managed by the same portfolio management teams as the predecessor funds.

By converting these two mutual funds into ETFs, Global X is enabling investors to access professionally managed emerging market strategies while enjoying the benefits of the ETF structure including greater liquidity and transparency, lower minimum investment levels, and potential tax efficiencies.

Emerging market economies across the world are rapidly shifting from asset-heavy, relatively low-return business models toward innovative and more profitable sectors including healthcare, technology, and education.

While these markets have significant growth potential, some investors have avoided the space due to concerns over volatility. As part of a diversified portfolio, however, emerging market exposure may enhance a portfolio’s diversification and return potential.

The Global X Emerging Markets Great Consumer ETF aims to capture the structural shift across developing markets as GDP profiles move away from exports and towards domestic consumption-driven growth. The fund targets companies that are poised to benefit from the newfound purchasing power of a rising middle class. It is not confined to the consumer staples and discretionary sectors but rather invests across a range of consumption-led industries.

The Global X Emerging Markets ETF, meanwhile, delivers a well-rounded, core strategy that invests across sectors within a wide range of emerging market countries. Driven by bottom-up fundamental analysis, the strategy focuses on quality companies that are likely to deliver long-term growth.

Commenting on the ETF listings, Luis Berruga, CEO of Global X ETFs, said: “The very first fund launched by Global X nearly 15 years ago was an emerging market ETF, underscoring the firm’s long-standing roots in the emerging markets space. Global X’s legacy and expertise in emerging markets dovetails with Mirae Asset’s extensive global network, given its global footprint of 12,000 employees and offices in over 50 countries. I am thrilled that we are combining our efforts to provide investors with high-quality, active exposure to emerging markets through the ETF wrapper.”

Malcolm Dorson, Senior Portfolio Manager at Global X, added: “A number of long-term tailwinds look set to bolster the case for active emerging markets exposure which require a very different investment approach than developed markets do. I am pleased that we are now offering investors access to the same teams and investment processes that make these two funds succeed, now through a transparent and cost-efficient ETF structure.”

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