Emerging Global Advisors Launched EGShares Blue Chip ETF Providing Exposure To Developed Market Companies That Have Shown Success From Emerging Market Growth

EGA applied its emerging markets expertise to identify those developed market companies that have measurable and meaningful exposure to emerging market revenue…  

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Emerging Global Advisors (EGA) today announced the launch of the EGShares Blue Chip ETF (Ticker: BCHP), an exchange-traded fund (ETF) designed to provide investors with exposure to a select group of 30 developed market (DM) companies with measurable, meaningful and growing revenue in their emerging market (EM) operations.
“DM multinationals are often used to invest indirectly in emerging markets; however, the exposure can be limited by the quantity or quality of the companies’ emerging markets business” said Marten Hoekstra, CEO of EGA. “To allow investors to access emerging market revenue from quality multinationals, we applied our index design expertise to BCHP, rigorously screening developed market companies and selecting only those with measurable, meaningful and growing exposure to emerging markets.”
“A large number of developed market companies claim emerging market aspirations, but just 24% of those companies adequately disclose what percentage of their revenue comes from emerging or frontier markets,” said Edward Kerschner, Vice Chairman of EGA. “Furthermore, of those companies that do disclose adequately, only 2% are high quality companies that have meaningful and growing emerging market revenue.”1
BCHP, EGA’s first self-indexed ETF, will track the EGAISM Developed Markets Blue Chip EM Access Index, an equally-weighted 30 stock index designed to capture the market performance of quality developed market companies that have measurable, meaningful and growing revenue from emerging markets. The index consists of common stocks listed on the primary exchanges of developed markets, as well as American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs) listed on U.S. & European exchanges.
“The fact is that some developed market companies do offer meaningful exposure to emerging market revenues—but only a select few,” said Robert Holderith, President of EGA. “While research shows that only 14% of the S&P 500’s aggregate revenues come from emerging markets2, companies in the EGAISM Developed Markets Blue Chip EM Access Index on average earn 47% of their revenue from emerging markets.”

Source: ETFWorld