EGA Emerging Global Shares Trust
|
|
|
|
CUSIP
|
|
NYSE Arca
|
EGShares Emerging Markets Domestic Demand ETF
|
|
|
|
268461621
|
|
EMDD
|
Before you invest, you may want to review the Funds
prospectus, which contains more information about the Fund and its risks. You can find the Funds prospectus (including amendments and
supplements) and other information about the Fund, including the Funds statement of additional information and shareholder report, online at
http://www.emergingglobaladvisors.com/etfliterature.cfm. You can also get this information at no cost by calling 1-888-800-4347 or by sending an e-mail
request to info@egshares.com, or from your financial professional. The Funds prospectus and statement of additional information, both dated July
29, 2013, as amended and supplemented from time to time, are incorporated by reference into this Summary Prospectus.
Summary Prospectus
August 6, 2013
THE U.S. SECURITIES AND EXCHANGE COMMISSION
(SEC) HAS NOT APPROVED OR
DISAPPROVED THESE SECURITIES OR PASSED UPON THE ADEQUACY OF THIS
SUMMARY PROSPECTUS. ANY REPRESENTATION TO
THE CONTRARY IS A CRIMINAL OFFENSE.
Not FDIC Insured. May lose value. No bank
guarantee.
EGShares Emerging Markets Domestic Demand
ETF
Investment Objective
The Fund seeks investment results
that correspond (before fees and expenses) to the price and yield performance of the INDXX Emerging Markets Domestic Demand Index (the Emerging
Markets Domestic Demand Underlying Index).
Fees and Expenses
The following table describes the
fees and expenses you may pay if you buy and hold shares of the Fund (Shares). You may also incur customary brokerage charges when buying
or selling Fund Shares.
Annual Fund Operating Expenses
|
|
|
|
|
|
|
(expenses that you pay each year as a
|
|
|
|
|
|
|
percentage of the value of your investment)
|
|
|
|
|
|
|
Management Fees
|
|
|
|
|
0.85
|
%
|
Distribution and/or Service (12b-1) Fees (1)
|
|
|
|
|
0.00
|
%
|
Total Annual Fund Operating Expenses (2)
|
|
|
|
|
0.85
|
%
|
(1)
|
|
The Fund does not anticipate that it will incur any
12b-1 fees during the current fiscal year.
|
(2)
|
|
Emerging Global Advisors, LLC pays all of the
expenses of the Fund, except for the Funds advisory fee, payments under the Funds 12b-1 plan (if any), brokerage expenses, taxes, interest,
and litigation expenses, and other extraordinary or merger expenses.
|
Example
The following example is intended
to help you compare the cost of investing in the Fund with the cost of investing in other funds. The example assumes that you invest $10,000 in the
Fund for the time periods indicated and then redeem all of the Shares at the end of those periods. This example assumes that the Fund provides a return
of 5% a year and that operating expenses remain the same. This example does not include the brokerage commission that you may pay to buy and sell
exchange-traded Shares of the Fund. Although your actual costs may be higher or lower, based on these assumptions, your costs would
be:
1 Year
|
|
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
$87
|
|
|
|
$271
|
|
$471
|
|
$1,049
|
Portfolio Turnover
The Fund pays transaction costs,
such as commissions, when it buys and sells securities or other instruments. A higher portfolio turnover rate may indicate higher transaction costs and
may result in higher taxes when Fund Shares are held in a taxable account. These costs, which are not reflected in annual Fund operating expenses or in
the example, affect the Funds performance. For the period from August 15, 2012 (commencement of operations) through the most recent fiscal year,
the Funds portfolio turnover rate was 57% of the average value of its portfolio.
Principal Investment Strategies
The Fund is an exchange-traded
fund (ETF). The Fund seeks to achieve its investment objective by attempting to replicate the portfolio of the Emerging Markets Domestic
Demand Underlying Index through investments in equity securities, including common shares traded on local exchanges, American Depositary Receipts
(ADRs) and Global Depositary Receipts (GDRs). ADRs and GDRs represent ownership interests in shares of foreign companies that
are held in financial institution custodial accounts, and are traded on exchanges in the United States and around the world.
Under normal circumstances, the
Fund will invest at least 80% of its net assets in emerging market domestic demand companies included in the Emerging Markets Domestic Demand
Underlying Index and generally expects to be substantially invested at such times, with at least 95% of its net assets invested in these securities.
The Fund invests in the constituent companies of the Emerging Markets Domestic Demand Underlying Index, which may include small and medium capitalized
companies (small cap and mid cap companies, respectively) domiciled in emerging market countries having a market capitalization
of at least $100 million at the time of purchase. The Emerging Markets Domestic Demand Underlying Index is a market capitalization weighted stock
market index comprised of a representative sample of 50 emerging market companies in sectors INDXX, LLC determines may have greater exposure to local
markets than the MSCI Emerging Markets Index, a free float-adjusted market capitalization index that is designed to measure equity market performance
in the global emerging markets, although there is no guarantee that this result will be obtained. A free-float index is one that only uses freely
traded shares in calculating the market capitalization weighting. The Fund defines domestic demand companies as companies that are included in the
Emerging Markets Domestic Demand Underlying Index at the time of purchase and includes emerging market companies in the consumer goods, consumer
services, healthcare, telecommunications and utilities industries.
The Fund intends to replicate the
constituent securities of the Emerging Markets Domestic Demand Underlying Index as closely as possible using ADRs, GDRs or ordinary local shares. In
certain circumstances, when it may not be possible or practicable to fully implement a replication strategy, the Fund may utilize a
representative sampling strategy whereby the Fund would hold a significant number of the component securities of the Emerging Markets
Domestic Demand Underlying Index, but may not track the index with the same degree of accuracy as would an investment vehicle replicating the entire
index.
The Fund will concentrate its
investments (
i.e
., hold 25% or more of its total assets) in a particular industry or group of industries to approximately the same extent that
the Emerging Markets Domestic Demand Underlying Index is concentrated. The Fund is non-diversified, which means that it can invest a greater percentage
of its assets in any one issuer than a diversified fund can.
2
Based on the number of Indian
securities that are included in the Emerging Markets Domestic Demand Underlying Index, the Fund may invest a portion of its assets in a wholly owned
subsidiary in Mauritius (the Subsidiary), which, in turn, invests at least 90% of its assets in Indian securities, and the Fund may also
invest to some extent in ADRs and GDRs. This investment structure enables the Fund to obtain benefits under a tax treaty between Mauritius and
India.
Principal Risks
Like all investments, investing in
the Fund entails risks, including the risk that you may lose part or all of the money you invest.
Equity Securities
The price
of one or more of the equity securities in the Funds portfolio may fall. Many factors can adversely affect an equity securitys performance,
including both general financial market conditions and factors related to a specific company, industry or geographic region.
Market Price Variance
As an
ETF, the Funds Shares generally trade in the secondary market on the NYSE Arca, Inc. (the Exchange) at market prices that change
throughout the day. Although it is expected that the market price of Fund Shares will approximate the Funds net asset value per Share
(NAV), there may be times when the market price and the NAV vary significantly. You may pay more than NAV when you buy Shares of the Fund
on the Exchange, and you may receive less than NAV when you sell those Shares on the Exchange.
Non-Correlation
The
Funds return may not match the return of the Emerging Markets Domestic Demand Underlying Index. The Fund incurs a number of operating expenses
that are not reflected in the Emerging Markets Domestic Demand Underlying Index, including the cost of buying and selling securities and of maintaining
the Subsidiary. If the Fund is not fully invested, holding cash balances may prevent it from tracking the Emerging Markets Domestic Demand Underlying
Index.
Market Liquidity for Fund
Shares
As an ETF, Fund Shares are not individually redeemable securities. There is no assurance that an active trading market for Fund Shares will
develop or be maintained. Active market trading of Fund Shares may cause more frequent creations or redemptions of Creation Units, which, if not
conducted in-kind, could increase the rate of portfolio turnover and the Funds tracking error versus the Emerging Markets Domestic Demand
Underlying Index.
Non-Diversification
The
Fund is non-diversified and, as a result, may have greater volatility than diversified funds. Because the Fund may invest a larger percentage of its
assets in securities of a single company than a diversified fund, the performance of one companys securities can have a substantial impact on the
Funds Share price.
Domestic Demand
Concentration
Because the Emerging Markets Domestic Demand Underlying Index is concentrated in the consumer goods, consumer services, healthcare,
telecommunications and utilities industries, the Fund may be adversely affected by increased price volatility of securities in those industries, and
may be more susceptible to adverse economic, market, political or regulatory occurrences affecting those industries.
Foreign Investment
Foreign
investments may be more volatile because of economic or political developments, public health and safety issues, demographic changes, market
inefficiencies, lack of regulatory oversight, or a higher risk that essential investment information may be incomplete, unavailable or inaccurate.
Restrictions on currency trading may be imposed by foreign countries, which may adversely affect the value of the Funds portfolio
securities.
Emerging Markets
Investments in emerging market securities are subject to even greater risks than for foreign investments generally, including increased risks of:
illiquidity of securities; price volatility; inflation or deflation; restrictions on foreign investment; nationalization; higher taxation; economic and
political instability; pervasive corruption and crime; less governmental regulation; and less developed legal systems.
Foreign Currency
The value
of an investment denominated in a foreign currency could change significantly as foreign currencies strengthen or weaken relative to the U.S. dollar.
Risks related to foreign currencies also include those related to economic or political developments, market inefficiencies or a higher risk that
essential investment information may be incomplete, unavailable or inaccurate.
Small Cap and Mid Cap
Companies
Small cap and mid cap companies may have greater volatility in price than the stocks of large capitalization companies due to limited
product lines or resources or a dependency upon a particular market niche.
Liquidity
In certain
circumstances, the Fund might not be able to dispose of certain holdings quickly or at prices that represent true market value in the judgment of EGA,
preventing the Fund from tracking the Emerging Markets Domestic Demand Underlying Index.
Depositary Receipts
Changes
in foreign currency exchange rates will affect the value of ADRs or GDRs and, therefore, may affect the value of the Funds portfolio. There is no
guarantee that a financial institution will continue to sponsor an ADR or GDR, or that the depositary receipts will continue to trade on an exchange,
either of which could adversely affect the liquidity, availability and pricing of the depositary receipt.
Treaty/Tax Risk
The Fund
and the Subsidiary rely on the Double Tax Avoidance Agreement between India and Mauritius for relief from certain Indian taxes. Treaty renegotiation or
legislative changes in the requirements to establish residency in Mauritius may result in higher taxes and lower returns for the Fund.
Performance
Because the Fund has not completed
a full calendar year of operations, no performance information has been provided.
3
Management
|
|
Investment Adviser
Emerging Global Advisors,
LLC
|
|
|
Portfolio Manager
Richard C. Kang is the lead
portfolio manager for the Fund and will be responsible for the day-to-day management of the Funds portfolio when it commences investment
operations. Mr. Kang has managed the Fund since its commencement of operations in 2012.
|
Purchase and Sale of Fund Shares
Unlike conventional mutual funds,
the Fund issues and redeems Shares on a continuous basis, at NAV, only in Creation Units consisting of 50,000 Shares. Individual Shares may only be
purchased and sold on the Exchange through a broker-dealer. Shares of the Fund will trade at market prices rather than NAV. As such, Shares may trade
at a price greater than NAV (premium) or less than NAV (discount).
Tax Information
The Funds distributions are
taxable and generally will be taxed as ordinary income, capital gains, or some combination of both, unless you are investing through a tax-deferred
arrangement, such as a 401(k) plan or an IRA, in which case your distributions generally would be taxed when withdrawn from the tax-deferred
account.
Financial Intermediary Compensation
If you purchase the Fund through a
broker-dealer or other financial intermediary (such as a bank), EGA may pay the intermediary for the sale of Fund Shares and related services. These
payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over
another investment. Ask your salesperson or visit your financial intermediarys website for more information.
EGA
Emerging Global Shares Trust
To view the Funds statutory prospectus or
statement of additional information online
visit:
http://www.emergingglobaladvisors.com/etfliterature.cfm
|
|
|
|
|
Brookfield Canada Office Properties (NYSE:BOXC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Brookfield Canada Office Properties (NYSE:BOXC)
Historical Stock Chart
From Jul 2023 to Jul 2024