ETF CHANGES: Changed Name to iShares Edge MSCI Multifactor Emerging Markets ETF (as of 05/12/2016)
BlackRock, Inc., begun trading the iShares FactorSelect MSCI Emerging ETF (BATS: EMGF) on Thursday, December 10, 2015. Here is a synopsis of the new ETF:
FUND INFORMATION:
| Symbol: EMGF | Exchange: BATS |
| Name: iShares FactorSelect MSCI Emerging ETF | Net Expense Ratio: 0.65% |
FUND OBJECTIVE:
The iShares FactorSelect MSCI Emerging ETF seeks to track the investment results of the MSCI Emerging Markets Diversified Multiple-Factor Index.
REFERENCE INDEX:
The MSCI Emerging Markets Diversified Multiple-Factor Index is designed to select equity securities from MSCI Emerging Markets Index (Parent Index) that have high exposure to 4 investment style factors: value, quality, momentum and low size, while maintaining a level of risk similar to that of the Parent Index.
The Underlying Index is also constrained in its construction to limit turnover and extreme exposures to particular sectors, countries, component weights or other investment style factors. MSCI, in selecting equity securities from the Parent Index, assigns a composite score for a security through a proprietary model based on four equally-weighted investment style factors: the value score is derived from a company’s valuation ratios (e.g., forward share price to earnings, share price to book value and enterprise value to operating cash flow); the quality score is calculated from a company’s underlying metrics (e.g., return-on-equity, debt-to equity and earnings variability); the momentum score is calculated through a global equity model, which aims to measure a security’s sustained relative performance against the global market over a two-year period and against other securities based in the same country over the previous six and 12 months (with a one month lag); and the low size score is derived from a global equity model that seeks to measure the market capitalization of a company as compared to other companies based in the same country.
As of September 30, 2015, the Underlying Index consisted of approximately 180 companies.
Top 10 Holdings (12/09/15):
Symbol |
Name |
Weight |
| INDA | ISHARES MSCI INDIA ETF | 6.86% |
| 267 | CITIC LTD | 2.31% |
| 033780 | KT&G CORP | 2.28% |
| 3008 | LARGAN PRECISION LTD | 2.07% |
| GAZP | GAZPROM OAO | 2.06% |
| NTES | NETEASE ADR REPRESENTING INC | 2.06% |
| ITSA4 | ITAUSA-INVESTIMENTOS ITAU S/A | 1.97% |
| 2474 | CATCHER TECHNOLOGY CO. LTD. | 1.75% |
| TATN | OAO TATNEFT | 1.66% |
| 2018 | AAC TECHNOLOGIES HOLDINGS INC | 1.56% |
Fund Country Weights (12/09/15):
| China | 29.75% |
| S.Korea | 15.54% |
| South Africa | 12.06% |
| Taiwan | 10.07% |
| Russian Federation | 7.96% |
| Brazil | 7.00% |
| India | 6.86% |
| Mexico | 3.49% |
| Qatar | 1.56% |
| Malaysia | 1.27% |
Top Sectors (12/09/15):
| Financials | 23.07% |
| Information Technology | 13.91% |
| Consumer Discretionary | 11.92% |
| Consumer Staples | 11.20% |
| Industrials | 9.70% |
| Funds | 6.86% |
| Energy | 6.14% |
| Health Care | 6.05% |
| Materials | 4.24% |
| Utilities | 3.71% |
Useful Links:
EMGF Home Page
Category: Equities> Emerging Equity Markets> Emerging Markets Equity Strategy
ETFtrack comment:
Here is a comment from Robert Nestor, Managing Director and Head of iShares Smart Beta Strategy at BlackRock:
“The iShares FactorSelect ETF suite enables investors to seek the potential performance and diversification benefits offered by four well known investment factors in an easy and cost-efficient way. With the launch of EMGF we have rounded out the suite, giving U.S. investors the added flexibility to choose multi-factor exposures across domestic, international and/or emerging markets.”