GMF Profile
The SPDR S&P Emerging Asia Pacific ETF aims to provide investors with broad exposure to publicly traded companies in emerging markets across the Asia Pacific region. The fund typically invests at least 80% of its total assets in the securities that comprise its underlying index, along with depositary receipts representing these securities. This strategy is designed to track the performance of the index as closely as possible, reflecting the overall market trends in these dynamic emerging markets.
The underlying index is a float-adjusted market capitalization-weighted benchmark that captures the performance of companies domiciled in emerging Asia Pacific economies. This index is meticulously constructed to define and measure the investable universe of such companies, providing a representative sample of the region's market. By focusing on float-adjusted market capitalization, the index ensures that the fund reflects the market value of companies based on available shares for trading, offering a realistic portrayal of investment opportunities in the region.
The ETF, managed by State Street Global Advisors, is designed to offer investors a convenient and efficient way to gain exposure to a broad array of companies in emerging Asia Pacific markets. This includes economies such as China, India, and Southeast Asian nations, which are characterized by rapid economic growth and increasing investment potential. By investing in this ETF, investors can benefit from the diverse growth opportunities present in these developing regions, which are often underrepresented in traditional global equity indices.
Despite its focus on emerging markets, the fund is non-diversified, meaning that it may have significant exposure to specific countries or sectors within the Asia Pacific region. This concentrated exposure can lead to higher volatility but also offers the potential for substantial returns. As such, the ETF serves as a strategic tool for investors seeking targeted exposure to the fast-growing economies of the Asia Pacific region, capitalizing on the growth potential of emerging markets.
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