- 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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