Overview
Description
Smart Emerging Markets ETF is an exchange-traded fund focused on investments within emerging market economies. Its primary function is to offer investors diversified exposure to a broad range of high-growth potential countries classified as emerging markets. This ETF aims to capture opportunities that arise from rapid economic growth, industrialization, and improved infrastructure within these regions.
Notably, the ETF allocates its assets across various sectors including technology, finance, consumer goods, and energy, which are pivotal to the development of emerging markets. It often includes stocks from countries like China, India, Brazil, and South Africa, which are some of the largest and most dynamic markets in the emerging sector.
The significance of Smart Emerging Markets ETF lies in its ability to provide access to the economic growth of these regions with relatively lower transaction costs than investing in individual stocks. It plays a vital role in the financial market by enhancing portfolio diversification, enabling risk mitigation while accessing high-growth market segments. Its smart beta strategies also aim at optimizing returns by using non-traditional weighting mechanisms, distinguishing it from other traditional index-based ETFs.
About
Instrument type
Common stock
Sector
Industry
Country
New Zealand
MIC code
XNZE