Dow Jones launches Emerging Markets Consumer Titans 30 index, unveils EGShares EM Consumer ETF

By Marisa Wong

Madison, Wis., Sept. 14 - Dow Jones Indexes announced the launch of the Dow Jones Emerging Markets Consumer Titans 30 index, which measures the performance of 30 leading consumer goods and consumer service companies in emerging markets.

The Dow Jones Emerging Markets Consumer Titans 30 index is licensed to Emerging Global Advisors, LLC and will serve as a basis for an exchange-traded fund, the EGShares Emerging Markets Consumer ETF, to be listed on NYSE Arca under the ticker symbol "ECON."

The ETF is the first emerging market ETF focused on consumer trends in the developing world.

"The Dow Jones Emerging Markets Consumer Titans 30 Index tracks the largest and most profitable consumer goods and consumer services companies in developing countries today. This allows investors to examine consumer spending in developing countries during the global economic recovery," said Michael A. Petronella, president, Dow Jones Indexes.

"As the developed world transitions from a society of spenders to a more prudent one of increased savings, the emerging world is slowly moving in the other direction," added Richard C. Kang, chief investment officer and director of research, Emerging Global Advisors, LLC.

"Although individually the emerging market consumer may have a smaller amount to spend, because of the size and youth of this demographic they are able to compensate for the massive structural changes happening in the developed world. This ETF is the first emerging market fund paying attention to this trend," Kang said.

The new index is part of the Dow Jones Emerging Markets Sector Titans index series, which consists of one composite index, 10 industry indexes as defined by the Industry Classification Benchmark and one customized index for metals and mining.

The new index is calculated in U.S. dollars and reviewed annually in June.

The index is weighted by float-adjusted market capitalization. Within the index, individual stocks' weightings are capped at 10% of the total float-adjusted market capitalization.

The index was first published on Jan. 20, 2010. Estimated daily back-tested history is available back to Dec. 30, 2005.

As of Aug. 31, the index had a 12-month performance of 36.77%. For 2010 through Aug. 31, the index is up 11.05%.

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