Emerging Market Domestic Demand: The total amount of money that is spent on goods and services by the governments, businesses, and consumers domiciled in emerging markets.
EM domestic demand has been difficult to isolate
through broad indexes
Although all ten sectors of an emerging economy are affected by domestic demand, there are five that tend to be the most heavily influenced: consumer staples, consumer discretionary, telecom, utilities and health care. Because these sectors are less mature, they are underrepresented in the market capitalization-weighted indexes that form the basis of many active and passive EM strategies.
Source: Bloomberg as of 6/30/12
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Emerging Markets Domestic Demand Index
|Key Statistics||Index Country |
|Index Sector Breakdown|
|ETF Ticker (NYSE)||EMDD||Mexico||24.8%||Telecommunication Services||29.6%|
|Bloomberg Index Ticker||IEMDDT||China||14.9%||Consumer Staples||28.3%|
|Inception Date||8/15/12||India||13.9%||Consumer Discretionary||26.0%|
|Net Expenses*||0.85%||South Africa||13.0%||Utilities||10.7%|
|Index Average Market Cap||$18.5B||Indonesia||6.5%|
|Index Median Market Cap||$11.6B||Malaysia||4.2%|
|Index Trailing P/E Ratio||19.2x||Russia||3.4%|
|Index Price/Book Ratio||4.1x||Thailand||2.4%|
|Index Dividend Yield||2.62%||Philippines||1.5%|
|All information as of 7/31/12|
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*Gross expenses of 1.38% are reimbursed to keep from exceeding 0.85% of net assets. This agreement will remain in effect and will be contractually binding at least until April 27, 2013.
Investors should carefully consider the Fund's investment objectives, risk factors and charges and expenses before investing. This and other information can be found in the Fund's prospectus, which may be obtained by calling + 1 888 800 4347 or by visiting the fund's website www.egshares.com to view or download a prospectus. Read the prospectus carefully before investing. Investing involves risk, including possible loss of principal.
Emerging market investments involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles, from economic or political instability in other nations or increased volatility and lower trading volume. The value of an investment denominated in a foreign currency could change significantly as foreign currencies strengthen or weaken relative to the U.S. dollar.
This fund is new and therefore does not have performance history of its own.
Shares are not individually redeemable and owners of the shares may acquire those shares from the Funds and tender those shares for redemption to the Fund in Creation Units only, typically consisting of aggregations of 50,000 shares.
These funds are non-diversified and, as a result, may have greater volatility than diversified funds. These funds will concentrate their investments in issuers of one or more particular industries to the same extent as the underlying index. Concentration risk results from maintaining exposure to issuers conducting business in a specific industry. In certain circumstances, these funds might not be able to dispose of certain holdings quickly or at prices that represent true market value preventing them from tracking the underlying index. As ETFs, fund shares are not individually redeemable securities. There is no assurance that an active trading market for fund shares will develop or be maintained.
Small cap and mid cap companies generally will have greater volatility in price than the stocks of large companies due to limited product lines or resources or a dependency upon a particular market niche.
Market Cap: The total dollar value of all outstanding shares. Computed as share times current market price.
Trailing P/E: The sum of a company's price-to-earnings, calculated by taking the current stock price and dividing it by the trailing earnings per share for the past 12 months (excluding negatives).
Price/Book: A ratio used to compare a stock's market value to its book value. It is calculated by dividing the current closing price of the stock by the latest quarter's book value per share.
Dividend Yield: A financial ratio that shows how much a company pays out in dividends each year relative to its share price.
Beta: A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. A beta of 1 indicates that the security's price will move with the market. A beta of less than 1 means that the security will be less volatile than the market. A beta of greater than 1 indicates that the security's price will be more volatile than the market.
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