I subscribe to several other financial blogs. Money magazine recommended one authored by a portfolio manager named Roger Nusbaum that I have been following recently. His post on Friday is about Exchange Traded Funds (ETFs) sponsored by EG Shares. ETFs are securities that represent a basket of securities. Unlike mutual funds which are priced daily, ETFs are priced continuously. Most ETFs are based on an index such as the Standard & Poor's 500 or NASDAQ 100. These are called passive ETFs. There are active ETFs that mimic the portfolio of a fund manager. These are rare. EG Shares has created 10 sector specific funds for the emerging markets. The emphasis is on Brazil, Russia, India, China and South Africa. Nusbaum finds the materials, telecom and industrial ETFs the most interesting. Less so with the technology ETF which has 88% of holdings in China and India. He also gives some ideas on how to pair sector specific ETFs and country funds for proper diversification of holdings.
The source for this post is here.
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