Alex Vynokur
Leading Australian financial services company, Betashares, today announced the launch of the Betashares MSCI Emerging Markets Complex ETF (ASX: BEMG), which will provide Australian investors with cost effective, efficient access to a broad range of emerging market equities.
BEMG aims to track the performance of the MSCI Emerging Markets Index, a globally recognised benchmark comprising large and mid-cap companies across 24 emerging economies in fast-growing regions including Asia, Latin America, Eastern Europe and Africa, markets that are typically difficult and costly to access directly.
The ETF will offer exposure to over 1,200 companies across key sectors such as technology, financials, consumer goods, and resources at a management fee of 0.35% p.a. – the most cost effective ETF of its kind in Australia. As a result, investors and their financial advisers can leverage BEMG to participate in the long-term growth potential of developing markets in a convenient and cost effective structure.
Emerging market economies have significant growth potential given the powerful demographic trends that should increasingly place them at the centre of future global economic expansion. These trends include a rising middle class, rapid urbanisation, and accelerating digital transformation. As a result of their distinctive qualities, emerging markets have historically shown a low correlation with developed markets such as the US and Europe, helping reduce overall portfolio volatility.
Often overlooked, emerging markets have been outpacing developed markets over recent decades, with strengthening structural fundamentals, relatively cheap valuations and strong growth prospects. As a result, emerging markets can complement allocations to developed markets like the US, Europe or Australia for those investors seeking growth and portfolio diversification benefits.
Betashares CEO, Mr Alex Vynokur, said BEMG will provide cost effective, efficient exposure to the growth potential of emerging market economies in one trade.
“BEMG will offer Australian investors and their financial advisers exposure to some of the fastest growing economies in the world, and can help diversify portfolios beyond developed markets like the US and Europe. Despite their growth, emerging markets exposures remain difficult to access directly – BEMG will bridge this gap within a convenient, cost-effective and familiar ETF structure. To that end, we’re proud to expand our line-up of global equities investment solutions to assist investors and their financial advisers in building more robust portfolios,” Mr Vynokur said.
BEMG is expected to be available on the ASX on Monday, 25 August.