Investors CHRONICLE Fund Awards 2012
BEST ETP FOR GLOBAL EMERGING MARKETS EQUITY EXPOSURE:
db x-trackers MSCI Emerging Markets TRN Index ETF
The db x-trackers MSCI Emerging Markets TRN Index ETF is not only cheap but it also has excellent tracking error. It tracks the MSCI Emerging Markets Index, the most widely used benchmark for exposure to emerging markets. Investors often wrongly assume that buying exposure to this index gives them exposure to the Bric economies (Brazil, Russia, India and China). But while the index has a significant weighting to China and Brazil, the other Bric peers, India and Russia, have much smaller weightings.
If you are buying the db x-trackers MSCI Emerging Markets TRN Index ETF, you will be getting exposure to a broad spread of 23 emerging market country indices, including significant exposure to countries such as South Korea, Taiwan and South Africa.
The ETF tracks the index by using a synthetic replication technique, which sees it using swaps to duplicate the performance of the MSCI Emerging Markets TRN Index. As the fund is a UCITS compliant vehicle, it is only permitted to be exposed to a maximum of 10 per cent derivative counterparty risk. The ETF comes with an all-in fee of 0.65 per cent, which makes it a cost-effective alternative to getting emerging market exposure via a mutual fund, considering that most active managed funds in this space will have a total expense ratio in excess of 1.5 per cent.
db x-trackers MSCI Emerging Markets TRN Index ETF
The db x-trackers MSCI Emerging Markets TRN Index ETF is not only cheap but it also has excellent tracking error. It tracks the MSCI Emerging Markets Index, the most widely used benchmark for exposure to emerging markets. Investors often wrongly assume that buying exposure to this index gives them exposure to the Bric economies (Brazil, Russia, India and China). But while the index has a significant weighting to China and Brazil, the other Bric peers, India and Russia, have much smaller weightings.
If you are buying the db x-trackers MSCI Emerging Markets TRN Index ETF, you will be getting exposure to a broad spread of 23 emerging market country indices, including significant exposure to countries such as South Korea, Taiwan and South Africa.
The ETF tracks the index by using a synthetic replication technique, which sees it using swaps to duplicate the performance of the MSCI Emerging Markets TRN Index. As the fund is a UCITS compliant vehicle, it is only permitted to be exposed to a maximum of 10 per cent derivative counterparty risk. The ETF comes with an all-in fee of 0.65 per cent, which makes it a cost-effective alternative to getting emerging market exposure via a mutual fund, considering that most active managed funds in this space will have a total expense ratio in excess of 1.5 per cent.
