News

11-2-09 5:51 PM EST | E-mail Article

NEW YORK -(Dow Jones)- U.K. index provider FTSE Group has licensed three new international equity indexes to Charles Schwab Investment Management for the creation of three exchange-traded funds, the company said Monday in a release.

The funds will track the FTSE All Emerging Index, the FTSE Developed ex-US Index and the FTSE Developed Small Cap ex-US Liquid Index.

The All Emerging index has outperformed the other two over the past five years due to its exposure to rapidly growing economies, FTSE said. It consists of 22 emerging markets including Brazil, China, Taiwan and India. Brazilian and Chinese stocks make up 19% and just under 18% of the index, respectively.

It's the latest move by ETF providers to offer investors more options as interest in the asset class has surged in recent years. This year, in particular, has been strong for emerging market ETFs as large money managers looked to them for quick exposure to the region's surging equities.

With all the money that has flooded into emerging markets stock funds this year, ETFs have attracted a larger portion of money than years past--slightly over 40% this year--according to fund-tracker EPFR Global.

ETFs trade like stocks and can serve as proxies for a particular index, sector, country, industry or even commodity.

-Kejal Vyas, Dow Jones Newswires; 212-416-2185; kejal.vyas@dowjones.com


  (END) Dow Jones Newswires
  11-02-091751ET
  Copyright (c) 2009 Dow Jones & Company, Inc.
Add a Comment

Try Premium Membership today. Your first 14 days are free of charge. Start my Premium Membership Trial.
Sponsored Links
Sponsor Center
Content Partners