The iShares MSCI Emerging Markets Consumer Growth UCITS ETF is aiming to profit from increased consumer spending in emerging markets by targeting companies serving this demand. The fund includes both developed and emerging market stocks in the consumer staples, consumer discretionary healthcare, industrial, information technology and telecoms sectors.
The other launch is the iShares MSCI USA Dividend IQ UCITS ETF. It aims to offer investors good income streams by targeting American companies which have higher-than-average dividend yields and earnings quality, both of which must be deemed sustainable over time.
The new emerging markets ETF has a total expense ratio of 0.60% and the US fund has a TER of 0.35%.
“We’re starting to see a shift in sentiment towards emerging markets and the growing consumption of the middle classes is creating a compelling investment opportunity,” said Tom Fekete, head of product development for iShares in EMEA. “Equally UK and European investors continue to need income-generating assets, and the high-quality dividends being issued by many US companies can offer a solid source of diversified income,” he added.
The new US fund will be the second iShares fund to be issued and settle in an international central securities depository provided by Euroclear Bank in what the company sees as a ‘pioneering partnership.’ iShares says using a single European settlement location will improve trading liquidity, ease cross-border ETF processing and lower transaction costs.
“Market infrastructure improvements are imperative to support the rapid growth of the ETF industry and we hope to see this structure adopted by providers across Europe to continue to drive the ETF market evolution,” said head of iShares EMEA capital markets Leland Clemons.
