Horizons ETFs launches new emerging markets fund

Horizons ETFs Management (Canada) Inc. has launched a new fund focused on emerging markets.

The Horizons Emerging Markets Leaders ETF (ticker HEMC), which began trading on the TSX today, is an actively managed fund that invests in equities that are either based in emerging markets or economically tied to such markets.

The product will offer “a more concentrated portfolio” than most other funds of its kind, a Wednesday release said. The ETF will also focus heavily on stocks that the sub-advisor expects will benefit from “the growing consumption and purchasing power of individuals in emerging markets.”

The management fee for the fund is 0.75%, and it will be managed by the 13-member global emerging markets equity team at New York-based Mirae Asset Global Investments (USA) LLC. This is the second actively managed ETF that will be sub-advised by that firm, the release said.

“Most emerging market exposure in the Canadian ETF market is through broad index strategies, and while there are some cost and liquidity benefits to indexing, emerging markets is an area where we believe an active portfolio management team, with the extensive experience like that of Mirae Asset USA, can add real value to long-term performance,” said Steve Hawkins, president and CEO of Horizons ETFs.

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