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Suite of Duration-Defined Emerging Market Fixed Income ETFs

Strong partnership between TCW, a premier Emerging Markets (EM) fixed income asset manager, and Emerging Global Advisors (EGA), an industry leader in emerging markets exchange-traded funds (ETFs), offering the first suite of fixed income ETFs to provide dollar denominated investment grade duration-defined emerging market sovereign and corporate bonds exposure.

EM debt currently offers attractive risk/reward potential, with strong fundamentals and higher yields relative to developed market counterparts. These funds enable investors to gain exposure to EM fixed income at a potentially higher yield to maturity than similar duration U.S. Treasury and U.S. credit ETFs.

Investment Adviser: Emerging Global Advisors
Sub-Adviser: TCW
  • Established in 1971
  • $135.5 billion in total firm assets under management; $10.0 billion in International/Emerging Markets assets under management or committed to management as of 3/31/2014
  • TCW offers strategies that invest in major world equity, fixed income and alternative markets, with offices in Los Angeles, New York, Boston, Paris and Hong Kong
Fund Objective

The EGShares TCW EM Long Term Investment Grade Bond Exchange-Traded Fund (ETF) (the "Fund"), subadvised by TCW Investment Management Company, seeks investment results that correspond (before fees and expenses) to the performance of the J.P. Morgan Custom EM Long Term Investment Grade Bond Index (the "Index"). Under normal conditions, the Fund will invest at least 80% of its net assets in investment grade, U.S. dollar denominated long term emerging market sovereign and corporate bonds.

Index Description

The reference index, J.P. Morgan Custom EM Long Term Investment Grade Bond Index (the "Index"), is a rules-based index comprised of approximately 120 emerging markets investment grade sovereign and corporate bonds denominated in U.S. dollars with remaining maturities between eight and twelve years. The Index includes bonds in the J.P. Morgan EMBI Global Diversified Index that have $1 billion or more of outstandig face value and bonds in the J.P. Morgan CEMBI Broad Diversified Index that have $750 million or more of outstanding face value. Bonds included in the Index must have at least one investment grade rating from either S&P or Moody's.

Key Statistics
(As of 4/4/2014)
ETF Ticker (NYSE)
LEMF
Bloomberg Index Ticker
JPEILEMD
Inception Date
1/7/2014
Total Expense Ratio
0.65%
Holdings
12
30-Day SEC Yield (as of 3/31/2014)
3.72%
Fund Average Yield-to-Maturity
4.77%

 
  Effective
Duration (%)
Weighted Average
Coupon (%)
 
Fund (LEMF)
7.12
5.39
 
Index
7.41
4.95

Index Sector Breakdown

(As of 4/4/2014)
Industry
Weights
Corporate
65.70%
Sovereign
21.10
Quasi-Sovereign
12.90

Index Country Breakdown

(As of 4/4/2014)
Country
Weights
Brazil
22.00%
China
19.20
Mexico
17.99
Colombia
10.40
Russia
9.00
Turkey
7.92
Philippines
7.74
Poland
5.44

 

Credit Ratings

(As of 4/4/2014)
Industry
Weights
AAA/Aaa
0.00%
AA/Aa
9.70
A/A
14.90
BBB/Baa
75.00
BB/Ba and Below
0.00

Performance

(As of 3/31/2014)
1-Month (%) Year-to-Date (%) Since Inception (%)
Fund (LEMF) 0.15 2.58 2.58
Fund Market Price 0.39 2.73 2.73
Index 0.48 3.20 3.20
Performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than the original cost. Current performance data may be higher or lower than actual data quoted. For the most current month-end performance data please call + 1 888 800 4347.

Market price returns are based on the midpoint of the bid/ask spread at 4 pm ET and do not represent the returns an investor would receive if shares were traded at other times.

This Fund is new and therefore has limited performance history.

Recent Distributions

 
Declaration Ex-Date Record Payable Total
Amount ($)
  6/24/2014 6/25/2014 6/27/2014 6/30/2014 0.05880
  5/23/2014 5/27/2014 5/29/2014 5/30/2014 0.06822
  4/24/2014 4/25/2014 4/29/2014 4/30/2014 0.06645
  3/24/2014 3/25/2014 3/27/2014 3/28/2014 0.07871
  2/24/2014 2/25/2014 2/27/2014 2/28/2014 0.06329
  1/24/2014 1/27/2014 1/29/2014 1/30/2014 0.05158

The information pertaining to J.P. Morgan or its affiliates used herein and the J.P. Morgan Custom EM Short Term Investment Grade Bond Index (the "Index") have been obtained from sources believed to be reliable, but J.P. Morgan does not warrant its completeness or accuracy. Such information and the Index are used with permission. The information and Index may not be copied, used, or distributed without J.P. Morgan's prior written approval. Copyright 2014, JPMorgan Chase & Co. All rights reserved. "J.P. Morgan" and the Index are trademarks of JPMorgan Chase & Co. and have been licensed for use for certain purposes by Emerging Global Advisors. Emerging Global Advisors' EGShares TCW EM Short Term Investment Grade Bond ETF (the "Fund") which is based on the Index is not sponsored, endorsed, sold or promoted by J.P. Morgan and J.P. Morgan makes no representation regarding the advisability of trading in such Fund.

Non-investment grade securities may be subject to greater fluctuations in value and risk of loss of income and principal than higher-rated securities. Fixed income investments entail interest rate risk, the risk of issuer default, issuer credit risk, and price volatility risk. Funds investing in bonds can lose their value as interest rates rise and an investor can lose principal. Fund share prices and returns will fluctuate with market conditions, currencies, and the economic and political climates where the investments are made. Emerging markets securities carry special risks, such as less developed or less efficient trading markets, a lack of company information, and differing auditing and legal standards. The securities markets of emerging markets countries can be extremely volatile. You cannot invest directly in an index.

Ratings shown are the highest rating given by one of the following national rating agencies: S&P or Moody's. Additional information about ratings can be found at www.moodys.com and www.standardandpoors.com. Credit ratings are subject to change. AAA, AA, A, and BBB are investment grade ratings; BB, B, CCC/CC/C and D are below-investment grade ratings. Bonds backed by U.S. Government or agency securities are given an implied rating equal to the rating of such securities. Holdings designated Not Publicly Rated are not rated by these national rating agencies.