State Street Global, as the issuer of the EEMX fund, employs a selective approach in tracking the MSCI Emerging Markets ex Fossil Fuels Index, utilizing a sampling strategy rather than purchasing all securities represented in the index. This strategy allows flexibility in constructing a portfolio with similar risk and return characteristics to the index, considering factors such as asset size. Typically, the fund invests predominantly in securities comprising the index and depositary receipts based on those securities. However, it may also include equity securities not in the index, cash equivalents, or money market instruments. The index, excluding companies with fossil fuel reserves, is a subset of the MSCI Emerging Markets Index, screened based on MSCI ESG Research data. Despite the screening, the fund may still hold securities of companies with fossil fuel reserves, though it aims to invest at least 80% in fossil fuel-free companies. The index's composition is reconstituted quarterly and weighted by free float-adjusted market capitalization. As of November 30, 2023, the fund predominantly comprised companies from the financial and technology sectors, with significant representation from various emerging market countries such as China. With 1,345 securities, the Index, sponsored by MSCI, Inc., serves as the benchmark for the fund's investment strategy, determined independently from the fund or its advisor.
EEMX, the State Street Global Emerging Markets ex Fossil Fuels ETF, aims to provide investors with exposure to emerging market companies while excluding those involved in fossil fuel reserves. As a result, the fund's dividend policy is influenced by the dividend-paying companies within its portfolio, which predominantly consist of firms from sectors such as finance and technology, as of the latest available data. While dividend payments can vary based on the performance and dividend policies of individual companies within the fund, investors can expect potential income from dividends as these companies distribute profits to shareholders. The dividend yield of EEMX may fluctuate over time in response to changes in market conditions, company performance, and global economic factors affecting emerging markets. Investors seeking dividend income from emerging market investments may find EEMX a suitable option, providing exposure to companies in growing economies while aligning with environmental and social considerations through its fossil fuel exclusionary strategy.
EEMX, the State Street Global Emerging Markets ex Fossil Fuels ETF, employs a meticulous tracking strategy to mirror the performance of the MSCI Emerging Markets ex Fossil Fuels Index. By utilizing a sampling approach, the fund strategically selects a subset of securities from the index, aiming to replicate its risk and return characteristics. Under normal market conditions, EEMX generally invests at least 80% of its total assets in securities comprising the index and depositary receipts based on those securities. Additionally, the fund may include equity securities not in the index, cash equivalents, or money market instruments to optimize tracking efficiency. Given the index's focus on excluding companies involved in fossil fuel reserves, EEMX aims to align with environmental and social considerations while providing investors with exposure to emerging market opportunities. The fund's tracking methodology, coupled with its quarterly reconstitution and free float-adjusted market capitalization weighting, ensures investors can potentially capture the performance of emerging market companies while adhering to specific investment criteria.
EEMX, the State Street Global Emerging Markets ex Fossil Fuels ETF, demonstrates a correlation with the MSCI Emerging Markets ex Fossil Fuels Index, which serves as its benchmark. The fund's investment strategy, utilizing a sampling approach, aims to closely track the index's performance by holding a subset of securities with similar risk and return characteristics. As a result, EEMX typically maintains a high correlation with the index over time. However, various factors such as market conditions, company performance, and economic trends within emerging markets can influence deviations in correlation. Despite these potential fluctuations, investors can generally expect EEMX to exhibit a strong correlation with the benchmark index, providing them with exposure to emerging market opportunities while adhering to the fund's specific investment criteria, particularly its exclusion of companies involved in fossil fuel reserves.
EEMX, the State Street Global Emerging Markets ex Fossil Fuels ETF, encompasses a diverse range of sectors within its portfolio, providing investors with exposure to various segments of emerging market economies. As of the latest available data, the fund's sector allocation predominantly includes companies from sectors such as finance and technology, with significant representation from emerging market countries like China, Brazil, and India. While sector allocations may evolve over time in response to market dynamics and economic trends, EEMX aims to maintain a balanced exposure to sectors poised for growth while excluding companies involved in fossil fuel reserves. This strategic sector diversification aligns with the fund's objective of delivering long-term capital appreciation while incorporating environmental and social considerations, making EEMX a compelling choice for investors seeking exposure to emerging markets with a focus on sustainability.
EEMX, the State Street Global Emerging Markets ex Fossil Fuels ETF, offers investors exposure to a broad array of emerging market equities while adhering to a fossil fuel exclusionary strategy. The fund's exposure primarily encompasses companies listed in the MSCI Emerging Markets ex Fossil Fuels Index, which excludes firms involved in fossil fuel reserves. By utilizing a sampling strategy, EEMX aims to replicate the risk and return characteristics of the index while holding a subset of its securities. This approach ensures investors can access opportunities in emerging markets while aligning with environmental and social considerations. EEMX's exposure spans various sectors and countries, providing diversification benefits and potential growth opportunities within rapidly evolving economies. Additionally, the fund's quarterly reconstitution and weighting methodology based on free float-adjusted market capitalization further enhance its exposure to emerging market dynamics. Overall, EEMX offers investors a strategic avenue to participate in the growth potential of emerging markets while emphasizing sustainability and responsible investing principles.
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