Emerging market stocks are back in rally mode, which means more new funds targeting this category.
BlackRock introduced the the iShares MSCI Brazil Small Cap Index Fund (NYSE: EWZS), iShares MSCI China Small Cap Index Fund (NYSE: ECNS) and the iShares MSCI Philippines Investable Market Index Fund (NYSE: EPHE).
“The new iShares single-country emerging-market ETFs provide financial professionals, institutions and individuals access to emerging markets that have potential for strong economic growth and moderate inflation,” said Noel Archard, Head of U.S. Product at iShares, BlackRock. “The new iShares funds further enhance our large single-country iShares ETF lineup to respond to investors’ requests for greater precision in implementing their international-focused investment strategies and interest in getting deeper access to small-capitalization stocks to help diversify portfolios.”
BlackRock’s introduction of small-cap emerging-market ETFs signals it won’t concede to competing ETF providers with similar offerings.
Van Eck launched the Market Vectors Brazil Small-Cap ETF (NYSE: BRF) in May 2009 and has gathered around $729 million in assets. BRF has an expense ratio of 0.65% and is ahead by 12.19% year-to-date.
ECNS will compete with the Guggenheim China Small Cap ETF (NYSE: HAO). So far this year, HAO has risen 13.86%. HAO has an expense ratio of 0.70%.
The annual expenses for all three new iShares emerging-market ETFs are 0.65%. Including the newly launched funds, the iShares international single-country family consists of more than 30 ETFs and 18 dedicated to emerging countries. At the end of August, BlackRock had $379.51 billion in U.S. listed ETF assets under management.
Another new exchange-traded product just launched was the UBS E-TRACS 1xMonthly Short Alerian MLP Infrastructure Total Return Index ETN, which is designed to provide a short exposure to the MLP Infrastructure market.
MLPS aims for monthly inverse exposure to the Alerian MLP Infrastructure Total Return Index. This particular benchmark is comprised of 25 energy infrastructure Master Limited Partnerships that earn the majority of their cash flow from the transportation and storage of energy commodities. If the index decreases in value, MLPS is designed to go up. MLPS charges annual expenses of 0.85% and has a maturity date of October 1, 2040.
ETNs are unsecured senior debt securities that carry the credit risk of the issuing financial institution.
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