EWX Profile
The SPDR S&P Emerging Markets Small Cap ETF is an exchange-traded fund (ETF) focused on providing exposure to the small-cap segment of emerging markets. The fund invests at least 80% of its total assets in securities that make up its benchmark index, along with depositary receipts that correspond to these securities. This approach ensures that the fund maintains a high degree of alignment with the index, aiming to reflect its performance as closely as possible.
The underlying index is a float-adjusted market capitalization-weighted benchmark designed to capture the performance of small-capitalization stocks in emerging market countries. The index represents the small-cap segment of the S&P Global BMI (Broad Market Index), which includes a comprehensive selection of emerging market equities. By focusing on small-cap stocks, the index provides investors with access to potentially high-growth companies that are often less covered by large-cap indices.
The ETF’s investment strategy emphasizes substantial exposure to the index’s component securities, which are selected based on their float-adjusted market capitalization. This method ensures that the ETF reflects the market capitalization and weightings of the underlying small-cap stocks in emerging markets. Additionally, the fund may invest in depositary receipts, which represent ownership in the index's component securities and facilitate investment in foreign markets.
As a specialized fund, the SPDR S&P Emerging Markets Small Cap ETF offers investors a targeted approach to emerging markets investing, focusing on smaller, potentially high-growth companies. The fund’s performance is closely tied to the fortunes of these smaller companies, which can provide significant growth opportunities but also come with increased volatility and risk. Investors should consider these factors and their investment objectives when evaluating the fund as part of their broader portfolio.
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