BLDRs EM vs MSCI EM
Posted: Wed Oct 08, 2003 11:59 pm
The seven-month-old BLDRS Emerging Markets 50 ADR Index
Fund is designed around the concept of reassuring investors
who want international exposure but may be wary of non-US
equities.
Nasdaq Financial Products Services Inc launched the fund
with Bank of New York as trustee in November 2002 along with
three other BLDRS, pronounced "builders" and named for
"Baskets of Listed Depositary Receipts." BLDRS Emerging
Markets, Asia 50 ADR Index Fund, Europe 100 ADR Index Fund
and Developed Markets 100 ADR Index Fund are based on
indices created in 1998.
The BLDRS funds, listed on Nasdaq, are the only exchangetraded
funds that track indices of American Depositary
Receipts. Bank of New York is the largest depositary bank for
ADRs, with 66% of all sponsored depositary receipt programs
not traded over the counter, and more than 1,400 programs
representing 70 countries.
The impetus for creating the BLDRS was to provide a transparent
vehicle for non-US exposure with a low expense ratio,
says Laura Melman, vice president of product management
for BoNY's depositary receipt division. BLDRS Emerging
Markets has an expense ratio of 0.3%, much lower than the
management fee for an actively managed mutual fund of non-
US stocks, she says. Other international ETF fees hover around
0.8%. As an ETF, the BLDRS product also offers more liquidity
than a non-exchange-traded fund.
When BLDRS Emerging Markets launched, it was the only ETF
to offer emerging markets exposure. Barclays Global Investors
rolled out the second such fund on April 11 on the American
Stock Exchange: iShares MSCI Emerging Markets Index Fund.
Because the BLDRS Emerging Markets offers international exposure
and the benefits of ADRs, the product "fills a niche, and it
makes folks a little more comfortable," says Melman.
<snip>
Much cheaper than the 0.75 EM ETF equivalent Stateside. Never heard anyone mention this one. Usually EEM instead.
http://exchangetradedfunds.com/ETFR/etfr33.pdf
Petey
Fund is designed around the concept of reassuring investors
who want international exposure but may be wary of non-US
equities.
Nasdaq Financial Products Services Inc launched the fund
with Bank of New York as trustee in November 2002 along with
three other BLDRS, pronounced "builders" and named for
"Baskets of Listed Depositary Receipts." BLDRS Emerging
Markets, Asia 50 ADR Index Fund, Europe 100 ADR Index Fund
and Developed Markets 100 ADR Index Fund are based on
indices created in 1998.
The BLDRS funds, listed on Nasdaq, are the only exchangetraded
funds that track indices of American Depositary
Receipts. Bank of New York is the largest depositary bank for
ADRs, with 66% of all sponsored depositary receipt programs
not traded over the counter, and more than 1,400 programs
representing 70 countries.
The impetus for creating the BLDRS was to provide a transparent
vehicle for non-US exposure with a low expense ratio,
says Laura Melman, vice president of product management
for BoNY's depositary receipt division. BLDRS Emerging
Markets has an expense ratio of 0.3%, much lower than the
management fee for an actively managed mutual fund of non-
US stocks, she says. Other international ETF fees hover around
0.8%. As an ETF, the BLDRS product also offers more liquidity
than a non-exchange-traded fund.
When BLDRS Emerging Markets launched, it was the only ETF
to offer emerging markets exposure. Barclays Global Investors
rolled out the second such fund on April 11 on the American
Stock Exchange: iShares MSCI Emerging Markets Index Fund.
Because the BLDRS Emerging Markets offers international exposure
and the benefits of ADRs, the product "fills a niche, and it
makes folks a little more comfortable," says Melman.
<snip>
Much cheaper than the 0.75 EM ETF equivalent Stateside. Never heard anyone mention this one. Usually EEM instead.
http://exchangetradedfunds.com/ETFR/etfr33.pdf
Petey