The fund invests in 30 of the largest publicly traded companies dedicated to the infrastructure industry in Brazil, and is designed to track the performance of the INDXX Brazil Infrastructure Index, according to an announcement.
The Brazil Infrastructure Index has an average market capitalization of $11.7 billion and the fund charges a net expense ratio of 0.85%* (gross expense ratio: 1.10%). The top five industry weightings of the Index, as of 12/31/09, are Metals & Mining (14.25%), Diversified Telecommunications (14.18%), Electric Utilities (12.25%), Independent Power Producers (11.27%) and Transportation Infrastructure (8.15%), followed by Wireless Telecommunication Services, Machinery, Water Utilities, Aerospace & Defense, and Media.
“The opportunity in Brazil is about more than the upcoming World Cup and Olympic games. The Brazilian government has committed resources to their infrastructure expansion, and it’s in the interest of the government, the country’s growing corporate sector and the average citizen that this build out happen, and happen fast,” said Richard Kang, CIO and Director of Research at Emerging Global Advisors, in the announcement.
Other funds launched by Emerging Global Shares include the China Infrastructure Fund (CHXX) (see China Infrastructure ETF Launches), Emerging Global Shares Emerging Markets Metals & Mining Fund (EMT), Emerging Global Shares Emerging Markets Energy Fund (EEO), Emerging Global Shares Emerging Markets Financials Fund (EFN) and the Emerging Global Shares Emerging Markets Titans Composite Index Fund (EEG).
More information is at http://www.egshares.com.