Lyxor Asset Management has listed three exchange-traded funds (ETFs) offering alternative ways to gain emerging-market exposure.
The Lyxor Ucits ETF MSCI EM Beyond Bric fund will track emerging markets excluding Brazil, Russia, India and China. The group noted that while that quartet accounts for the bulk of emerging market indices, those countries face slowing growth, higher inflation and excessive reliance on the energy sector.
The Beyond Bric index has returned an annualised 17.5% over the past five years, compared with 14.9% from the broader index.
The Lyxor Ucits ETF MSCI Select Oecd Emerging Market GDP fund will also exclude the Bric countries, following instead members of the Organisation for Economic Co-operation and Development (Oecd) in emerging markets such as South Korea and Poland. That index has returned an annualised 17.3% over the past five years.
The Lyxor Ucits ETF MSCI Mexico fund will track the 25 stocks in that index, representing approximately 85% of the market.
All three products will have a management fee of 0.55%.