iShares MSCI EM Consumer Growth UCITS ETF USD (Acc)
| Issuer: iShares |
| Asset Class: Equity |
| TER: 60bps |
| Trading Currency: USD |
| Pays Income: False |
| Listing Date: 09 Jun 2014 |
| Ticker: CEMG |
| ISIN: IE00BKM4H197 |
This investment vehicle offers targeted exposure to a powerful, long-term secular growth story: the rise of the consumer in emerging markets. As hundreds of millions of people in developing nations enter the middle class, their disposable incomes are rising, leading to a significant increase in spending on goods and services. This fund is designed to capture this trend by investing in companies within the consumer discretionary and consumer staples sectors that are poised to benefit directly from this expanding consumption. By focusing on these specific sectors, it provides a more concentrated play on this demographic and economic shift compared to a broad emerging markets index, targeting firms in areas like e-commerce, automotive, luxury goods, and essential household products.
The underlying portfolio is constructed by tracking an index that selects companies from a parent emerging markets benchmark based on their relevance to the consumer growth theme. This results in a portfolio heavily weighted towards countries with large and growing consumer bases, such as China, India, and Brazil. While this thematic focus offers the potential for higher growth, investors should be aware of the inherent concentration risks. The fund's performance will be closely tied to the economic health and consumer sentiment within these key emerging economies, which can be subject to greater volatility and political risk than developed markets.
For investors, this product can serve as an excellent satellite holding within a diversified global equity portfolio. It allows for a tactical overweight to a specific high-growth theme that might be underrepresented in broader index funds. It is suitable for those with a long-term investment horizon who are willing to accept the higher risk profile associated with both emerging markets and a focused thematic strategy. The fund aims to grow capital over the long term by reinvesting any dividends received from its underlying holdings back into the portfolio, which can compound returns over time.
