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Obviously Emerging Global Advisors wasn't able to generate interest in their fund but did they or anyone else offer any reasons why no one is interested? Is it a question of marketing (because I'd never heard of Emerging Global Advisors) or a true lack of interest on the part of investors? You're article seems to suggest the latter but I also don't think there's much of the former. Considering the returns you cited over the past 10 years, both are a surprise to me.
Obviously Emerging Global Advisors wasn't able to generate interest in their fund but did they or anyone else offer any reasons why no one is interested? Is it a question of marketing (because I'd never heard of Emerging Global Advisors) or a true lack of interest on the part of investors? You're article seems to suggest the latter but I also don't think there's much of the former. Considering the returns you cited over the past 10 years, both are a surprise to me.
I actually looked for the health care fund the other day to consider investing in, only to realize that the fund company had dropped a lot of their EM funds. Oh well. Long ABT as a boring EM healthcare play.
Sorry for being a dissenter, but does anybody really need an EM HC fund -- translation: regional, sector ?? Smells like too much slicing and dicing to me. If this is a slice-dice need, then I would focus less on where a stock is domiciled and more on where a stock derives its revenue, and one may want to consider an ETF like PPH, which holds significant positions in stocks that derive appreciable sales from emerging market countries as detailed here:
LLJB, My impression from interviewing EGA's people is it was a lack of investor interest, but I wouldn't be surprised if they also lacked much of a marketing budget as a small ETF shop. The thing is the primary investors of ETFs are financial planners and institutional money managers like hedge funds and there's a kind of laziness to how they invest in the area. They tend to want to get their emerging exposure in one simple investment so they buy the bucket ETF, which offers them less diversification being correlated with developed markets and less exposure to the more interesting growth aspects of developing nations.
Comments
I agree completely and funny enough we were discussing the same about healthcare not too long ago.
mutualfundobserver.com/discuss/discussion/comment/50872/#Comment_50872
Obviously Emerging Global Advisors wasn't able to generate interest in their fund but did they or anyone else offer any reasons why no one is interested? Is it a question of marketing (because I'd never heard of Emerging Global Advisors) or a true lack of interest on the part of investors? You're article seems to suggest the latter but I also don't think there's much of the former. Considering the returns you cited over the past 10 years, both are a surprise to me.
http://www.fool.com/investing/general/2014/03/16/5-big-pharma-stocks-with-the-strongest-ties-to-eme.aspx
Kevin
My impression from interviewing EGA's people is it was a lack of investor interest, but I wouldn't be surprised if they also lacked much of a marketing budget as a small ETF shop. The thing is the primary investors of ETFs are financial planners and institutional money managers like hedge funds and there's a kind of laziness to how they invest in the area. They tend to want to get their emerging exposure in one simple investment so they buy the bucket ETF, which offers them less diversification being correlated with developed markets and less exposure to the more interesting growth aspects of developing nations.