• High dividend index accesses Emerging Markets yield sources
• First Emerging Global Advisors ETF linked to a FTSE index
FTSE Group (“FTSE”) has been selected by Emerging Global Advisors, the asset management company specializing exclusively in emerging market ETFs, as the index provider for its EGShares Emerging Markets Dividend Growth ETF (EMDG) which listed today on NYSE Arca. EGShares EMDG is the first US-listed ETF focused on providing dividend growth exposure in emerging markets.
The ETF tracks the FTSE Emerging All Cap ex Taiwan Diversified Capped Dividend Growth 50 Index (EMGD). This capped, market capitalisation weighted index represents the performance of 50 emerging market companies with a high compounded annual dividend growth rate and recognises the increasing number of emerging market companies that pay dividends.
This is the first time that FTSE has worked with Emerging Global Advisors, who join the long list of global ETF providers using FTSE indices.
Jonathan Horton, President of FTSE North America and Head of FTSE’s ETP Service Unit, said: “We were delighted to have had the opportunity to work with Emerging Global Advisors as they expand their product suite. By placing tradability, representativeness and strong governance at the core of our index design and supporting index construction with a transparent country classification system, FTSE offers a holistic solution for ETF issuers seeking to provide new investment opportunities in emerging markets.”
Marten Hoekstra, CEO of Emerging Global Advisors, said: “Many emerging market-based multi-national companies have demonstrated their ability to increase dividends. Through EMDG, dividend growth investors are able to implement their investment strategy in emerging markets, diversifying their dividend yield sources.”
The FTSE Emerging All Cap ex Taiwan Diversified Capped Dividend Growth 50 Index is managed according to a publicly available set of rules and is derived from the FTSE Global Equity Index Series, which covers over 7,400 securities in 47 different countries and captures 98% of the world’s investable market capitalisation. FTSE’s flagship global benchmark, the FTSE All-World, is used by investors worldwide to structure and benchmark their international equity portfolios.