SPDR® MSCI Emerging Markets Fossil Fuel Reserves Free ETF (EEMX)

Overview

The SPDRu00ae MSCI Emerging Markets Fossil Fuel Reserves Free ETF (EEMX) seeks to provide investment results that, before fees and expenses, correspond generally to the performance of the MSCI Emerging Markets ex Fossil Fuels Index. The fund focuses on emerging market equities while excluding companies with fossil fuel reserves, aiming for a more sustainable investment approach.

Reputation and Reliability

State Street Global Advisors (SSGA) is a reputable and well-established ETF issuer with a long track record of managing a wide range of investment products.

Management Expertise

SSGA has extensive experience in index tracking and responsible investing, with a dedicated team managing ESG-focused ETFs.

Goal

To track the performance of the MSCI Emerging Markets ex Fossil Fuels Index.

Investment Approach and Strategy

Strategy: The ETF employs a passive management strategy, seeking to replicate the returns of its underlying index by investing in a diversified portfolio of emerging market equities that excludes companies with fossil fuel reserves.

Composition The ETF's holdings consist primarily of stocks from emerging market countries. The underlying index removes companies that own fossil fuel reserves.

Market Share: Information not available in detail to provide an accurate value.

Total Net Assets (AUM): 136871520

Key Competitors

• iShares ESG Aware MSCI EM ETF (ESGE)
• Vanguard FTSE Emerging Markets ETF (VWO)
• iShares Core MSCI Emerging Markets ETF (IEMG)

Competitive Landscape

The competitive landscape involves ETFs focusing on emerging markets, with some emphasizing ESG factors. EEMX's advantage lies in its specific focus on excluding fossil fuel reserves, appealing to investors seeking environmentally conscious emerging market exposure. Compared to broad emerging market ETFs like VWO and IEMG, EEMX may have a more concentrated portfolio.

Historical Performance: Historical performance data varies year to year and would need to be retrieved from a reliable source.

Benchmark Comparison: The ETF's performance can be assessed by comparing its returns to those of the MSCI Emerging Markets ex Fossil Fuels Index. Tracking error, a measure of how closely the ETF follows its index, is also important.

Expense Ratio: 0.2

Average Trading Volume

Average trading volume varies depending on market conditions, but is generally considered moderate, implying reasonable liquidity.

Bid-Ask Spread

The bid-ask spread is typically tight, indicating relatively low trading costs, but can widen during periods of high volatility.

Market Environment Factors

Economic growth in emerging markets, investor sentiment towards ESG investments, and global energy prices can all influence EEMX's performance.

Growth Trajectory

The ETF's growth trajectory depends on investor demand for sustainable emerging market investments and the relative performance of the fossil fuel-free segment of the emerging market universe.

Competitive Edge

EEMXu2019s competitive edge stems from its specific exclusion of companies with fossil fuel reserves within the emerging market universe, catering to investors prioritizing environmentally conscious investing. This focused approach provides a distinct offering compared to broader ESG or emerging market ETFs. Its track record of aligning with its underlying index gives investors confidence. The established reputation of State Street Global Advisors also strengthens its competitive standing.

Volatility

The ETF's volatility is expected to be similar to that of the broader emerging market equity market, which tends to be higher than developed markets.

Market Risk

Specific risks include emerging market economic and political instability, currency fluctuations, and potential underperformance due to the exclusion of fossil fuel companies.

Ideal Investor Profile

The ideal investor is one seeking exposure to emerging market equities while avoiding companies with fossil fuel reserves, aligning with environmental and sustainability goals. This includes socially responsible investors, ESG-focused funds, and individuals seeking diversification while limiting fossil fuel exposure.

Market Risk

This ETF is suitable for long-term investors with a moderate to high risk tolerance who are seeking diversified emerging market exposure with an ESG tilt.

The SPDRu00ae MSCI Emerging Markets Fossil Fuel Reserves Free ETF (EEMX) offers exposure to emerging market equities while excluding companies with fossil fuel reserves, making it appealing to environmentally conscious investors. As an ETF from SSGA, it aims to track the MSCI Emerging Markets ex Fossil Fuels Index. Performance is tied to the index and subject to emerging market risks, along with fluctuations of its sector. The targeted fossil fuel-free approach distinguishes it from conventional emerging market ETFs, offering the investors more focused selection.

Data Sources:

• State Street Global Advisors (SSGA) website
• ETF.com
• Morningstar

Disclaimers:

The information provided is for informational purposes only and does not constitute financial advice. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions. Market share data may vary. Performance data is not a guarantee of future results.