As investors continue to turn to international markets for diversification, a hedge against the dollar and amplified rates of return, ETF provider, Van Eck Global has taken it a step further by offering the first ever exchange traded fund which gives country specific exposure to Egypt.
The Market Vectors Egypt Index ETF (EGPT) gives investors exposure to small, mid and large cap Egyptian stocks. It holds 28 different stocks of publicly traded companies that are both domiciled and primarily listed on an exchange in Egypt or that generate at least 50% of revenues in Egypt. As for sector breakdown, 42.5% of its assets are allocated to financials, 18% to telecommunications, 15% to industrials and 14.8% to the materials sector. EGPT carries an expense ratio of 0.94% and has roughly $2 million in assets under management.
Egypt is attractive because it is the third largest economy in Africa and is expected to witness growth greater than most developed nations in 2010. Historically, Egypt has seen nice growth trends, boasting average annual GDP growth of 4.9% since 2000 and 6.3% for the last three years. Additionally, the nation is attractive due to its supply of natural resources – more specifically, crude oil, natural gas and iron ore.
Some other ways to gain exposure to Egypt include the Market Vectors Africa Index ETF (AFK), which allocates nearly 20% of its assets to Egypt and the SPDR S&P Emerging Middle East & Africa (GAF), which allocates slightly over 5% of its assets to the country.
