• The ETFx Emerging Markets Index is a powerful, modular set of indices that offers investors smarter exposure to equities in developing nations.
    • The master index consists of 10 industrial sector indices assembled according to the GICS system. The master index consist of 500 underlying positions and the 10 sector indices each consist of 50 underlying positions.
    • The modified equal-weighted index composition permits holdings across a range of market capitalizations in 34 countries.
  • The sector approach is superior to a market cap approach.
  • Considers a more comprehensive set of economic forces within the various nations; not just a company’s size.
    • Helps to diversify correlation effects that result from trade links between countries.
    • Examines investable developing countries without making a distinction for “frontier” markets.
  • GDP screen considers economic output as the primary qualifying variable for nations.
    • Liquidity and market value screen qualifies stock issues.

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