Betashares unveils emerging markets equities ETF

Emerging markets equities has become the latest target for a new exchange traded fund (ETF) from Betashares, as the issuer looks to broaden its suite of global equities opportunities.

The Betashares MSCI Emerging Markets Complex ETF (BEMG) will provide exposure to more than 1,200 companies across 24 emerging markets in regions such as Asia, Latin America, Eastern Europe and Africa by tracking the performance of the MSCI Emerging Markets Index.

The ETF will also tap into key emerging opportunities across technology, financials, consumer goods and resources, offering investors a wide range of sector exposure at a management fee rate of 0.35 per cent per annum.

Betashares CEO, Alex Vynokur, said the ETF allows investors to access an often underrated source of strong performance and consistent growth, given several demographic megatrends driving the markets’ expansion and innovation including rising middle class, rapid urbanisation, and accelerating digital transformation.

The ETF launch also comes as global investors continue to grapple with the fluctuating volatility faced by developed markets such as the US, offering the benefits of diversification alongside “strengthening structural fundamentals, relatively cheap valuations and strong
growth prospects”.

“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,” Vynokur said.

“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.”