Alternative Investments/ESG: A New ETF From First Trust Seeks Out Companies In Democratic EM Countries
A democratic electoral system requires not only fair balloting procedures and basic political competition, but also some respect for the rule of law and civil liberties, such as freedom of assembly.
First Trust Advisors has launched a new fund, the First Trust Bloomberg Emerging Market Democracies ETF (NYSEARCA: EMDM), which focuses on companies in emerging market countries with high regard for political rights and civil liberties.
The ETF seeks investment results that correspond to the Bloomberg Emerging Market Democracies Index, which only includes securities from countries designated by nonprofit democracy advocacy group Freedom House as an Electoral Democracy. (ETF Trends/VettaFi)
The ETF aims to address concerns about the rule of law, political rights, and civil liberties while providing exposure to the long-term growth potential of emerging market stocks. The International Monetary Fund predicts that the majority of global economic growth will occur outside the US, particularly in emerging markets.
“Concerns about the rule of law, political rights, and civil liberties have led many investors to avoid allocating to emerging markets,” said Ryan Issakainen, senior vice president and ETF strategist at First Trust. “By screening out countries that are not considered Electoral Democracies, we believe this ETF addresses many such concerns, while also providing exposure to the robust long-term growth potential of emerging markets stocks.”
Related Story: First Trust Unveils ETF Focused On Alternative Assets
Photo by Elliott Stallion on Unsplash
Latest Alternative Investment News
Digital Assets: Ledger, Maker Of Crypto Security Hardware, Raises Nearly All Of $100M Series C Round
Paris-based startup Ledger, which makes hardware wallets for cryptocurrency investors, has raised €100m ($109m) in funding, valuing the company at €1.3bn. The round was led by investors including Digital Finance…
FinTech: Cogo And Eliq Partner To Help Banking Customers Enhance The Energy Efficiency Of Their Homes
Cogo, a fintech which collaborates with banks to assist customers in decreasing their carbon footprint as a carbon footprint management firm, is partnering with Eliq, a company that specializes in…
Venture Capital: The LSP Dementia Fund Closes €260M (US$283M) To Address Dementia, One Of The Most Significant Health Crises Of Our Era
The LSP Dementia Fund has reached a final close at €260 million (US$ 283 million), surpassing its initial target of €100 million. The fund, which is managed by EQT Life…
Artificial Intelligence: The DAGGER AI Model Gives Advance Warning Of Dangerous Solar Storms
Researchers have developed an AI-based model that combines satellite data and machine learning to predict where an impending solar storm will strike on Earth, offering 30 minutes of advance warning….