NEW YORK, March 17, 2016 /PRNewswire/ -- Emerging Global Advisors (EGA), the investment advisor to the EGShares exchange-traded funds, today announced that on March 1, 2016 the EGShares Emerging Markets Domestic Demand ETF (EMDD) was renamed the EGShares EM Strategic Opportunities ETF (EMSO). Additionally, the Fund's underlying index, the S&P Emerging Markets Domestic Demand Index, was renamed the S&P Emerging Markets Strategic Opportunities Index. The Fund's expense ratio is 0.65% net and 0.85% gross.1
"We continue to believe that the best long-term growth opportunity in emerging markets is in the growth of domestic demand," said EGA Chief Product and Marketing Officer Marc Zeitoun. "By framing this theme within the context of a strategic opportunity, we are better reflecting that the fund is a broadly diversified emerging market core solution."
The EGShares EM Strategic Opportunities ETF seeks to capture predominantly large and mid-cap companies across 12 emerging markets. Emerging markets represents nearly five times the estimated consumption growth of developed markets and areas of emerging market economies like the consumer, telecommunications, health care and utilities businesses stand to benefit from this growth.2 The fund does not invest in energy and commodities.
Please see supplements to the EGShares Emerging Markets Domestic Demand ETF prospectus and Statement of Additional Information filed January 19, 2016 for important disclosures. For more information about this change, please contact EGA at (888) 800-4347 or email@example.com.
About Emerging Global Advisors
Emerging Global Advisors (EGA) is a leading provider of strategic beta portfolios in emerging markets and we employ a disciplined, rules-based investment process rooted in research and portfolio strategy. Our investment strategies, including our EGShares suite of ETFs, are designed to help investors generate alpha within their emerging and frontier market allocations. We offer core equity, thematic and equity income emerging and frontier market exposures.
1EGA has entered into a written fee waiver agreement to waive its advisory fee to 0.65% of the Fund's average daily net assets. The Fee Waiver Agreement will remain in effect and will be contractually binding until July 31, 2018.
2Source: McKinsey & Company, "Winning the $30 trillion decathlon," 2012.
Carefully consider a Fund's investment objectives, risk factors and charges and expenses before investing. This and other information can be found in the Fund's prospectus, which may be obtained by calling + 1 888 800 4347 or by visiting the Fund's website egshares.com to view or download a prospectus. Read the prospectus carefully before investing. Investing involves risk, including possible loss of principal.
Emerging market investments involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles, from economic or political instability in other nations or increased volatility and lower trading volume. These Funds will concentrate their investments in issuers of one or more particular industries to the same extent that its Underlying Index is so concentrated and to the extent permitted by applicable regulatory guidance. Concentration risk results from maintaining exposure to issuers conducting business in a specific industry. Small-cap and mid-cap companies generally will have greater volatility in price than the stocks of large companies due to limited product lines or resources or a dependency upon a particular market niche. One cannot invest directly in an index.
ETF shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund.
S&P Emerging Markets Strategic Opportunities Index is a 50-stock free-float market capitalization-weighted index designed to measure the performance of companies in emerging markets that are tied to domestic demand, specifically those in consumer staples, consumer discretionary, telecommunications services, health care and the utilities sectors. One cannot invest directly in an index.
The S&P Emerging Markets Strategic Opportunities Index is a product of S&P Dow Jones Indices LLC ("SPDJI"), and has been licensed for use by Emerging Global Advisors. Standard & Poor's® and S&P® are registered trademarks of Standard & Poor's Financial Services LLC ("S&P"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Emerging Global Advisors. The EGShares EM Strategic Opportunities ETF is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P Emerging Markets Strategic Opportunities Index.
Marc Zeitoun is a registered representative of ALPS Distributors, Inc.
EGA and EGShares Funds are distributed by ALPS Distributors, Inc. Emerging Global Advisors acts as the investment advisor to the Fund. ALPS and Emerging Global Advisors are unaffiliated entities.
© 2016 Emerging Global Advisors, LLC. All rights reserved. EGA®, EGSharesSM and EGAISM are service marks of Emerging Global Advisors, LLC. All other trademarks, service marks or registered trademarks are the property of their respective owners.
EGS002734 | Expires 3/15/2017
SOURCE Emerging Global Advisors