Global X Funds, as the issuer of EMFM, maintains a strategic investment approach aimed at mirroring the performance of the MSCI Select Emerging and Frontier Markets Access Index, alongside American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs) linked to the index's securities. This commitment constitutes at least 80% of the fund's total assets, in line with non-fundamental policies that necessitate a 60-day prior notice to shareholders for any alterations. The Underlying Index, meticulously curated by MSCI, encompasses select emerging and frontier markets companies, ensuring diversified exposure across countries, sectors, and issuers. With a focus on nations like Indonesia, Malaysia, and Mexico, among others, the index captures 205 constituents, emphasizing sectors like banking and financials. Global X Funds, operating under a passive investment strategy, prioritizes replicating the Underlying Index's performance, aiming for a correlation exceeding 95% over time. While typically adopting a replication strategy, the fund may resort to representative sampling under specific circumstances to optimize shareholder outcomes. With a commitment to aligning with market movements, EMFM stands as a pivotal instrument for investors seeking exposure to emerging and frontier markets.
EMFM, as an investment vehicle tracking the performance of emerging and frontier markets, offers the potential for dividend income to its investors. As the fund primarily invests in securities from the MSCI Select Emerging and Frontier Markets Access Index, along with ADRs and GDRs tied to these securities, dividend distributions may occur based on the dividend policies of the underlying companies within the index. While the specific dividend yield can vary depending on the performance and dividend policies of the companies held within the index, investors in EMFM can potentially benefit from dividend payments as a component of their total return. Additionally, as the fund's investment strategy aims for a correlation of over 95% with the Underlying Index, investors can expect dividend income to reflect the performance of the selected emerging and frontier markets companies represented in the index.
EMFM, managed by Global X Funds, employs a meticulous tracking strategy aimed at closely mirroring the performance of the MSCI Select Emerging and Frontier Markets Access Index. With at least 80% of its total assets invested in securities from the index, alongside ADRs and GDRs linked to these securities, EMFM strives to replicate the index's movements with precision. The fund predominantly adopts a replication strategy, investing in the securities of the Underlying Index in proportions similar to those within the index itself. However, under specific circumstances where replication may not be feasible or advantageous, such as practical difficulties or substantial costs, EMFM may utilize a representative sampling strategy. Despite potential variances arising from these strategies, the fund aims to achieve a correlation of over 95% with the Underlying Index, providing investors with a reliable means of gaining exposure to the performance of select emerging and frontier markets companies while maintaining diversification across countries, sectors, and issuers.
EMFM, the Global X Funds' offering focused on emerging and frontier markets, is designed to maintain a high correlation with the MSCI Select Emerging and Frontier Markets Access Index. This correlation is a key measure of the fund's effectiveness in tracking the index's performance. With a target correlation exceeding 95%, investors can expect EMFM to closely follow the movements of the underlying index over time. This robust correlation underscores the fund's commitment to providing investors with a reliable avenue for gaining exposure to emerging and frontier markets while minimizing tracking error. By aligning its investment strategy with the index, EMFM aims to offer investors a transparent and consistent investment experience, enabling them to capitalize on the growth potential of these dynamic markets.
EMFM, managed by Global X Funds, strategically invests in sectors closely aligned with the MSCI Select Emerging and Frontier Markets Access Index. This index exhibits a diverse range of sectors, reflecting the economic landscape of emerging and frontier markets. As of December 31, 2023, the index was notably concentrated in the banking industry, with significant exposure to the financials sector. By maintaining investments in sectors proportionate to those within the index, EMFM offers investors a comprehensive exposure to various industries driving growth in these markets. This sector-focused approach ensures that investors can benefit from the potential opportunities and diversification advantages present across emerging and frontier markets, thereby positioning EMFM as a valuable instrument for those seeking broad-based exposure to these dynamic economies.
EMFM, an offering by Global X Funds, provides investors with exposure to the burgeoning opportunities presented by emerging and frontier markets. With at least 80% of its assets invested in securities from the MSCI Select Emerging and Frontier Markets Access Index, alongside ADRs and GDRs linked to these securities, EMFM offers a comprehensive avenue for capturing the growth potential of companies operating in these dynamic markets. By maintaining a diversified portfolio across countries, sectors, and issuers, EMFM ensures that investors can access a broad spectrum of opportunities while mitigating specific risks associated with individual markets. This exposure to emerging and frontier markets aligns with the long-term growth objectives of investors seeking to capitalize on the expanding economic prospects and demographic trends in these regions. Through EMFM, investors can access these markets with ease, benefiting from the fund's strategic approach to navigating the complexities and opportunities inherent in emerging and frontier economies.
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