Global X converts two emerging market mutual funds into ETFs

ETF issuer Global X announced on Tuesday that it had converted two of its actively managed mutual funds into two new actively managed exchange traded funds.


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The two funds that Global X converted were the Global X Emerging Markets Great Consumer ETF (NYSEARCA:EMC) and the Global X Emerging Markets ETF (NYSEARCA:EMM).

By transitioning EMC and EMM into ETFs, investors will now still receive exposure to the emerging market space but will also gain the benefits of an ETF wrapper. Some of those benefits include a greater amount of liquidity and transparency, along with an easier barrier of entry regarding investment minimums and also potential tax efficiencies. 

Moreover, EMC and EMM have new expense ratios as well as the two funds come with a 0.75% ratio.

“A number of long-term tailwinds look set to bolster the case for active emerging markets exposure, which require a very different investment approach than developed markets do,” said Malcolm Dorson, senior portfolio manager at Global X. “I am pleased that we are now offering investors access to the same teams and investment processes that make these two funds succeed, now through a transparent and cost-efficient ETF structure.”

For reference, some of the key holdings that EMC and EMM have in common are shares of Tencent Holdings (OTCPK:TCEHY), and Alibaba (BABA).

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