The exchange-traded fund (ETF) provider has launched the Betashares MSCI Emerging Markets Complex ETF (ASX: BEMG), designed to provide investors with access to a broad range of emerging market equities.
Betashares confirmed BEMG aims to track the performance of the MSCI Emerging Markets Index, a widely recognised benchmark that covers large and mid-cap companies across 24 countries.
These economies include fast-growing regions such as Asia, Latin America, Eastern Europe and Africa.
These markets are usually costly and difficult to access directly, according to Betashares.
The new ETF offers exposure to more than 1,200 companies across various sectors, including technology, financials, consumer goods and resources, with a management fee of 0.35 per cent per annum.
Emerging markets have been regarded as offering strong long-term growth potential, underpinned by structural trends such as rising middle-class populations, rapid urbanisation and the acceleration of digital adoption.
These factors have supported higher levels of consumption and investment, creating opportunities across a broad range of industries.
In addition, emerging economies have tended to show relatively low correlation with developed markets such as the United States and Europe.
For investors, this provides the potential benefit of diversification by helping to reduce overall portfolio volatility.
Alex Vynokur, chief executive of Betashares, said the new fund would give investors efficient exposure to the growth potential of emerging economies.
“BEMG will offer Australian investors and their financial advisers exposure to some of the fastest-growing economies in the world and can help diversify portfolios beyond developed markets like the US and Europe.
“Despite their growth, emerging markets exposures remain difficult to access directly – BEMG will bridge this gap within a convenient, cost-effective and familiar ETF structure,” he said.
BEMG has been scheduled to begin trading on the ASX on Monday, 25 August.
