EGA Emerging Global Shares Trust
|
|
|
|
CUSIP
|
|
NYSE Arca
|
EGShares India Infrastructure ETF
|
|
|
|
268461845
|
|
INXX
|
Before you invest, you may want to review the Funds
prospectus, which contains more information about the Fund and its risks. You can find the Funds prospectus (including amendments and
supplements) and other information about the Fund, including the Funds statement of additional information and shareholder report, online at
http://www.emergingglobaladvisors.com/etfliterature.cfm. You can also get this information at no cost by calling 1-888-800-4347 or by sending an e-mail
request to info@egshares.com, or from your financial professional. The Funds prospectus and statement of additional information, both dated July
29, 2013, as amended and supplemented from time to time, are incorporated by reference into this Summary Prospectus.
Summary Prospectus
August 6, 2013
THE U.S. SECURITIES AND EXCHANGE COMMISSION
(SEC) HAS NOT APPROVED OR
DISAPPROVED THESE SECURITIES OR PASSED UPON THE ADEQUACY OF THIS
SUMMARY PROSPECTUS. ANY REPRESENTATION TO THE
CONTRARY IS A CRIMINAL OFFENSE.
Not FDIC Insured. May lose value. No bank
guarantee.
EGShares India Infrastructure
ETF
Investment Objective
EGShares India Infrastructure ETF
(the Fund) seeks investment results that correspond (before fees and expenses) to the price and yield performance of the INDXX India
Infrastructure Index (the India Infrastructure Underlying Index).
Fees and Expenses
The following table describes the
fees and expenses you may pay if you buy and hold shares of the Fund (Shares). You may also incur customary brokerage charges when buying
or selling Fund Shares.
Annual Fund Operating Expenses
(expenses that you pay each year as a
percentage of the value of your
investment)
|
|
|
|
|
|
|
Management Fees
|
|
|
|
|
0.85
|
%
|
Distribution and/or Service (12b-1) Fees (1)
|
|
|
|
|
0.00
|
%
|
Total Annual Fund Operating Expenses (2)
|
|
|
|
|
0.85
|
%
|
(1)
|
|
The Fund does not anticipate that it will incur any
12b-1 fees during the current fiscal year.
|
(2)
|
|
Emerging Global Advisors, LLC pays all
of the expenses of the Fund, except for the Funds advisory fee, payments under the Funds 12b-1 plan (if any),
brokerage expenses, taxes, interest, and litigation expenses and other extraordinary or merger expenses.
|
Example
The following example is intended
to help you compare the cost of investing in the Fund with the cost of investing in other funds. The example assumes that you invest $10,000 in the
Fund for the time periods indicated and then redeem all of the Shares at the end of those periods. This example assumes that the Fund provides a return
of 5% a year and that operating expenses remain the same. This example does not include the brokerage commission that you may pay to buy and sell
exchange-traded Shares of the Fund. Although your actual costs may be higher or lower, based on these assumptions, your costs would
be:
1 Year
|
|
|
|
3 Years
|
|
5 Years
|
|
10 Years
|
$87
|
|
|
|
$271
|
|
$471
|
|
$1,049
|
Portfolio Turnover
The Fund pays transaction costs,
such as commissions, when it buys and sells securities or other instruments. A higher portfolio turnover rate may indicate higher transaction costs and
may result in higher taxes when Fund Shares are held in a taxable account. These costs, which are not reflected in annual Fund operating expenses or in
the example, affect the Funds performance. During the most recent fiscal year, the Funds portfolio turnover rate was 24% of the average
value of its portfolio.
Principal Investment Strategies
The Fund is an exchange-traded
fund (ETF). The Fund seeks to achieve its investment objective by attempting to replicate the portfolio of the India Infrastructure
Underlying Index through investments in equity securities, including common shares traded on local exchanges, American Depositary Receipts
(ADRs) and Global Depositary Receipts (GDRs). ADRs and GDRs represent ownership interests in shares of foreign companies that
are held in financial institution custodial accounts, and are traded on exchanges in the United States and around the world. The India Infrastructure
Underlying Index includes companies whose businesses involve: construction and engineering, construction materials, independent power producers, metals
and mining and wireless telecommunications services.
Under normal circumstances, the
Fund will invest at least 80% of its net assets in Indian infrastructure companies included in the India Infrastructure Underlying Index and generally
expects to be substantially invested at such times, with at least 95% of its net assets invested in these securities. The Fund invests in Indian medium
to large capitalization infrastructure companies, which are defined by the India Infrastructure Underlying Index as emerging market companies that are
domiciled in India and that have a market capitalization of at least $200 million at the time of purchase.
The Fund invests substantially all
of its assets in a wholly owned subsidiary in Mauritius (the Mauritius Subsidiary), which in turn, invests at least 90% of its assets in
Indian securities, and the Fund may also invest to some extent ADRs and GDRs, based on the number of Indian securities that are included in the India
Infrastructure Underlying Index. Through this investment structure, the Fund obtains benefits under the tax treaty between Mauritius and
India.
The Fund intends to replicate the
constituent securities of the India Infrastructure Underlying Index as closely as possible using ADRs, GDRs or ordinary local shares (including through
its Mauritius Subsidiary). In certain circumstances, when it may not be possible or practicable to fully implement a replication strategy, the Fund may
utilize a representative sampling strategy whereby the Fund would hold a significant number of the component securities of the India
Infrastructure Underlying Index, but may not track the index with the same degree of accuracy as would an investment vehicle replicating the entire
index.
The Fund will concentrate its
investments (
i.e
., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the
India Infrastructure Underlying Index is concentrated. The India Infrastructure Underlying Index is a free-float capitalization weighted stock market
index comprised of 30 leading emerging market companies that INDXX, LLC determines to be representative of Indias infrastructure sectors. A
free-float index is one that only uses freely traded shares in calculating the market capitalization weighting.
2
Principal Risks
Like all investments, investing in
the Fund entails risks, including the risk that you may lose part or all of the money you invest.
Equity Securities
The price
of one or more of the equity securities in the Funds portfolio may fall. Many factors can adversely affect an equity securitys performance,
including both general financial market conditions and factors related to a specific company, industry or geographic region.
Market Price Variance
As an
ETF, the Funds Shares generally trade in the secondary market on the NYSE Arca, Inc. (the Exchange) at market prices that change
throughout the day. Although it is expected that the market price of Fund Shares will approximate the Funds net asset value per Share
(NAV), there may be times when the market price and the NAV vary significantly. You may pay more than NAV when you buy Shares of the Fund
on the Exchange, and you may receive less than NAV when you sell those Shares on the Exchange.
Non-Correlation
The
Funds return may not match the return of the India Infrastructure Underlying Index. The Fund incurs a number of operating expenses that are not
reflected in the India Infrastructure Underlying Index, including the cost of buying and selling securities and of maintaining the Mauritius
Subsidiary. If the Fund is not fully invested, holding cash balances may prevent it from tracking the India Infrastructure Underlying
Index.
Market Liquidity for Fund
Shares
As an ETF, Fund Shares are not individually redeemable securities. There is no assurance that an active trading market for Fund Shares will
develop or be maintained. Active market trading of Fund Shares may cause more frequent creation or redemption activities and, to the extent such
creation and redemption activities are not conducted in-kind, could increase the rate of portfolio turnover and the Funds tracking error versus
the India Infrastructure Underlying Index.
Non-Diversification
The
Fund is non-diversified and, as a result, may have greater volatility than diversified funds. Because the Fund may invest a larger percentage of its
assets in securities of a single company than a diversified fund, the performance of that company can have a substantial impact on the Funds
Share price.
Infrastructure
Concentration
Because the India Infrastructure Underlying Index is concentrated in the infrastructure sector of India, the Fund may be adversely
affected by increased price volatility of securities in that sector, and may be more susceptible to adverse economic, market, political or regulatory
occurrences affecting that sector.
Foreign Investment
Foreign
investments may be more volatile because of economic or political developments, public health and safety issues, demographic changes, market
inefficiencies, lack of regulatory oversight, or a higher risk that essential investment information may be incomplete, unavailable or inaccurate.
Restrictions on currency trading may be imposed by foreign countries, which may adversely affect the value of the Funds portfolio
securities.
Emerging Markets
Investments in emerging market securities are subject to even greater risks than for foreign investments generally, including increased risks of:
illiquidity of securities, price volatility, inflation or deflation, restrictions on foreign investment, nationalization, higher taxation, economic and
political instability, pervasive corruption and crime, less governmental regulation, and less developed legal systems.
Foreign Currency
The value
of an investment denominated in a foreign currency could change significantly as foreign currencies strengthen or weaken relative to the U.S. dollar.
Risks related to foreign currencies also include those related to economic or political developments, market inefficiencies or a higher risk that
essential investment information may be incomplete, unavailable or inaccurate.
India
Because the Fund only
invests in Indian securities, its NAV will be much more sensitive to changes in economic, political and other factors within India than would a fund
that invested in a greater variety of countries. Special risks include, among others, political and legal uncertainty, persistent religious, ethnic and
border disputes, greater government control over the economy, currency fluctuations or blockage and the risk of nationalization or expropriation of
assets.
Treaty/Tax Risk
The Fund
and the Mauritius Subsidiary rely on the Double Tax Avoidance Agreement between India and Mauritius for relief from certain Indian taxes. Treaty
renegotiation or legislative changes in the requirements to establish residency in Mauritius may result in higher taxes and lower returns for the
Fund.
Mid-Cap Companies
Medium
capitalization companies may have greater volatility in price than the stocks of large capitalization companies due to limited product lines or
resources or a dependency upon a particular market niche.
Liquidity
In certain
circumstances, the Fund might not be able to dispose of certain holdings quickly or at prices that represent true market value in the judgment of EGA,
preventing the Fund from tracking the India Infrastructure Underlying Index.
Depositary Receipts
Changes
in foreign currency exchange rates will affect the value of ADRs or GDRs and, therefore, may affect the value of the Funds
portfolio.
Performance
The performance information that
follows shows the Funds performance information in a bar chart and an average annual total returns table. The information provides some
indication of the risks of investing in the Fund by comparing the Funds performance with a broad measure of market performance and the index the
Fund seeks to track. The Funds past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the
future. For the most current month-end performance data please visit
www.emergingglobaladvisors.com
or call (888) 800-4347.
After-tax returns are calculated
using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax
returns depend on an investors tax situation and may differ from those shown. In addition, the
3
after-tax returns shown are
not relevant to investors who hold Shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.
Annual Total Return as of December 31
During the periods shown in the
bar chart above the Funds highest quarterly return was 27.90% (quarter ended March 31, 2012) and the Funds lowest quarterly return was
-19.66% (quarter ended December 31, 2011).
Year-to-date return (through June
30, 2013): -23.62%
Average Annual Total Return as of December 31,
2012
|
1 Year
|
|
Since
Inception
(8/11/10)
|
Return Before Taxes
|
|
25.50
|
%
|
|
-11.80%
|
Return After Taxes on Distributions
|
|
25.21
|
%
|
|
-11.92%
|
Return After Taxes on Distributions and Sale of Fund Shares
|
|
16.84
|
%
|
|
-9.91%
|
INDXX India Infrastructure Index
(reflects no deduction for fees, expenses or taxes)
|
|
25.92
|
%
|
|
-11.09%
|
Management
|
|
Investment Adviser
Emerging Global Advisors,
LLC
|
|
|
Portfolio Manager
Richard C. Kang is the lead
portfolio manager for the Fund and is responsible for the day-to-day management of the Funds portfolio. Mr. Kang has managed the Fund since its
commencement of operations in 2010.
|
Purchase and Sale of Fund Shares
Unlike conventional mutual funds,
the Fund issues and redeems Shares on a continuous basis, at NAV, only in Creation Units consisting of 50,000 Shares. Individual Shares may only be
purchased and sold on the Exchange through a broker-dealer. Shares of the Fund will trade at market prices rather than NAV. As such, Shares may trade
at a price greater than NAV (premium) or less than NAV (discount).
Tax Information
The Funds distributions are
taxable and generally will be taxed as ordinary income, capital gains, or some combination of both, unless you are investing through a tax-deferred
arrangement, such as a 401(k) plan or an IRA, in which case your distributions generally would be taxed when withdrawn from the tax-deferred
account.
Financial Intermediary Compensation
If you purchase the Fund through a
broker-dealer or other financial intermediary (such as a bank), EGA may pay the intermediary for the sale of Fund Shares and related services. These
payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over
another investment. Ask your salesperson or visit your financial intermediarys website for more information.
EGA
Emerging Global Shares Trust
To view the Funds statutory prospectus or
statement of additional information online
visit:
http://www.emergingglobaladvisors.com/etfliterature.cfm
|
|
|
|
|
Brookfield Canada Office Properties (NYSE:BOXC)
Historical Stock Chart
From Jul 2024 to Jul 2024
Brookfield Canada Office Properties (NYSE:BOXC)
Historical Stock Chart
From Jul 2023 to Jul 2024