Global X ETFs, the New York-based provider of exchange-traded funds (ETFs), has announced the completion of the conversion of two actively managed mutual funds (the “Predecessor Funds”), previously advised by Mirae Asset Global Investments (USA) LLC , an affiliate, into two actively managed ETFs. The Global X Emerging Markets Great Consumer ETF (EMC) and the Global X Emerging Markets ETF (EMM), which had an effective conversion date of May 12, are the latest additions to Global X ETF’s emerging markets suite.
| ETF Name | Ticker | Predecessor Mutual Fund Name | Benchmark | New Expense |
|---|---|---|---|---|
| Global X Emerging Markets Great Consumer ETF | EMC | Mirae Asset Emerging Markets Great Consumer Fund | MSCI Emerging Markets Index | 0.75% |
| Global X Emerging Markets ETF | EMM | Mirae Asset Emerging Markets Fund | MSCI Emerging Markets Index | 0.75% |
Emerging market economies across the world are rapidly shifting from asset-heavy, relatively low-return business models toward innovative and more profitable sectors including healthcare, technology, and education. While these markets have significant growth potential, some investors have avoided the space due to concerns over volatility. As part of a diversified portfolio, however, emerging markets exposure has the potential to achieve high levels of growth over the long-term. By converting these two mutual funds into ETFs with shareholder approval, Global X offers investors the chance to gain exposure to emerging markets while enjoying the benefits of an ETF structure, including greater levels of liquidity and transparency, lower [investment] minimums, and potential tax efficiencies. The Global X Emerging Markets Great Consumer ETF and the Global X Emerging Markets ETF are managed by the same portfolio management team as the Predecessor Funds and follow substantially similar investment strategies.
“The very first fund launched by Global X nearly 15 years ago was an emerging markets ETF, underscoring the firm’s long-standing roots in the emerging markets space,” said Luis Berruga, CEO of Global X ETFs. “Global X’s legacy and expertise in emerging markets dovetails with Mirae Asset’s extensive global network, given their global footprint of 12,000 employees and offices in over 50 countries. I am thrilled that we are combining our efforts to provide investors with high-quality, active exposure to emerging markets through the ETF wrapper.”
“A number of long-term tailwinds look set to bolster the case for active emerging markets exposure, which require a very different investment approach than developed markets do,” said Malcolm Dorson, senior portfolio manager at Global X. “I am pleased that we are now offering investors access to the same teams and investment processes that make these two funds succeed, now through a transparent and cost-efficient ETF structure.”
Global X Emerging Markets Great Consumer ETF (EMC):
EMC is advised by Global X Management Company LLC and sub-advised by Mirae Assset Global Investments (Hong Kong) Limited. Malcolm Dorson, Joohee An and Sol Ahn are the fund’s portfolio managers. The strategy aims to capture a structural shift across developing markets, as GDP profiles move away from exports and towards domestic consumption-driven growth.
Global X Emerging Markets ETF (EMM):
EMM is advised by Global X Management Company LLC and sub-advised by Mirae Asset Global Investments (Hong Kong) Limited. Malcolm Dorson, Rahul Chadha and Phil Lee are the fund’s portfolio managers. This is a well-rounded, core strategy focused on bottom-up fundamental equity analysis. This is a broad market fund that takes a tactical and opportunistic approach to investing in a broad range of sectors and emerging markets that have the potential to achieve high levels of growth over the long-term, with a focus on quality across sectors and regions.