Source, in collaboration with BofA Merrill Lynch has launched the FTSE Emerging EMEA 40 Source ETF, designed to offer efficient and liquid exposure to the emerging Emea region.
Emerging markets continue to be high on investors' agendas. The challenge of investing in markets like Russia, South Africa, Poland and the Middle East and North Africa is that achieving broad, but efficient benchmark exposure is a difficult.
This is because these markets are often affected by a lack of liquidity and operational challenges such as irregular dividend payments.
The FTSE Emerging Emea 40 Index, that the new Source product tracks, is made up of the 40 largest and most liquid stocks in the region.
The index was specifically designed to be liquid and tradable, while also being representative of emerging Emea. As of 8 June 2011, the largest weightings were to South Africa (29%), Russia (28%), Poland (16%), Turkey (11%), Hungary (7%) and the Czech Republic (7%).
Other countries eligible for inclusion are Egypt, Israel, Morocco and the United Arab Emirates.
Jonathan Beebe, head of Emea equity cash and flow derivatives trading at BofA Merrill Lynch, said: “The aim was to devise a product that gives investors liquid and cost efficient access to a new, carefully constructed benchmark that correlates closely to other broad based indices."
The FTSE Emerging EMEA 40 Source ETF has a management fee of 0.60% per annum and is listed on the London Stock Exchange.
©2011 funds europe