NEW YORK, Nov. 7, 2013 /PRNewswire/ -- Global X Funds,
the New York-based provider of
exchange-traded funds (ETFs), today launched the Global X Next
Emerging & Frontier ETF (NYSE Arca: EMFM). This new
product will provide investors with access to 35 countries
exhibiting high growth potential and favorable demographical trends
that may stimulate their rise as economic powers.
Importantly, the index does not include equities from the BRIC
countries (Brazil, Russia, India, and China) and other, more advanced economies like
South Korea or Taiwan.
The Global X Next Emerging & Frontier ETF tracks the
Solactive Next Emerging & Frontier Index and has exposure to
attractive economies such as the
Philippines, Nigeria,
Chile, Panama, Pakistan and the Czech Republic. Countries included in the
index represent 24% of the world's population, but just 12% of the
world's gross domestic product and 8% of the world's equity market
cap.
Based on the young populations present in these countries,
Global X expects these countries to generate more competitive labor
forces that likely will become the world's major supplier of
low-cost labor. The firm also expects these countries to provide
low correlations to both developed markets and each other, since
they are driven by domestic-focused sectors including agriculture,
construction and local banking. The index incorporates a
capping mechanism to ensure diversification across sectors and
individual countries.
"The Next Emerging & Frontier ETF offers exposure to
specific economies that we expect will experience a long period of
high growth rates, similar to what the BRIC nations experienced
over the past 15 years," said Bruno del
Ama, chief executive officer of Global X Funds. "Investing
in emerging markets continues to be an important strategy for
portfolio diversification and growth, but investors must now look
beyond more mature economies to regions with accelerating growth
rates and expanding populations. This is because 'traditional'
emerging market investments have begun to slow down and are too
closely correlated with developed markets."
"While emerging and frontier markets may provide ample
opportunity for growth, many individual countries and regions are
concentrated in particular sectors and have only a handful of
liquid names," added Justin Young,
Head of Capital Markets. "The Next Emerging & Frontier ETF was
designed specifically to address these challenges by providing
broad exposure to 35 countries and utilizing caps and liquidity
thresholds in an effort to ensure diversified, high quality
holdings."
EMFM complements the Global X suite of frontier and targeted
emerging market ETFs, which includes the Global X Colombia ETF
(GXG) and Global X Nigeria Index ETF (NGE).
ABOUT GLOBAL X FUNDS
Global X is a New York-based sponsor of exchange-traded
funds that facilitates access to investment opportunities across
the global markets. With $2.5 billion
in managed assets and over 100,000 investors from more than 100
countries as of October 31, 2013,
Global X offers exchange-traded funds that target Income,
International, Commodity Producers, Industry, and Alternative fund
suites. For more information about these exchanged traded funds,
please visit www.globalxfunds.com.
DISCLOSURE
Investing involves risk, including possible loss of principal.
International investing may involve risk of capital loss from
unfavorable fluctuations in currency values, from differences in
generally accepted accounting principles, or from economic or
political instability in other nations. Emerging markets involve
heightened risks related to the same factors as well as increased
volatility and lower trading volume. Frontier markets generally
have less developed capital markets than traditional emerging
market countries, and, consequently, the risks of investing in
foreign securities are magnified in such countries. These countries
are subject to potentially significant political, social and
economic instability, which could materially and adversely affect
the companies in which the Fund may invest. The Fund invests in
securities and markets that are susceptible to fluctuations in
certain commodity markets. Commodities represent a significant
portion of the Latin American and Middle Eastern economies. Any
negative changes in commodity markets could have a great impact on
these economies. Unlike most exchange-traded funds, the Fund
intends to effect all creations and redemptions partially for cash,
rather than in-kind securities. As a result, an investment in the
Fund may be less tax-efficient than an investment in a more
conventional ETF. Diversification does not prevent all investment
loss.
This information is not intended to be individual or personalized
investment or tax advice. Please consult a financial advisor or tax
professional for more information regarding your tax situation.
The information presented here is for informational purposes only.
It was prepared on information and sources that we believe to be
reliable, but we make no representations or guarantees as to the
accuracy or the completeness of the information contained
herein.
Carefully consider the Funds' investment objectives, risk
factors, charges and expenses before investing. This and additional
information can be found in the Funds' prospectus, which may be
obtained by calling 1-888-GX-FUND-1 (1.888.493.8631), or
by visiting www.globalxfunds.com. Read the prospectus
carefully before investing.
Global X Management Company
LLC serves as an advisor to the Global X Funds. The Funds are
distributed by SEI Investments Distribution Co., which is not
affiliated with Global X Management Company or any of its
affiliates. Solactive Indexes have been licensed by Solactive AG
for use by Global X Management Company LLC. Global X Funds are not
sponsored, endorsed, issued, sold, or promoted by Solactive AG, nor
does this company make any representations regarding the
advisability of investing in the Global X Funds.
SOURCE Global X Funds