Cameron Gleeson

Sometimes you have to actually pay tax before you sell a share in certain markets.

So emerging markets, they can be sort of inefficient to trade.

Now, the way that BetaShares has approached this is we launched an ETF called BEMG, which is our BetaShares MISCI Emerging Markets ETF.

The MISCI Emerging Market Index is the default index for emerging markets.

So it includes exposure to all the large countries, you know, obviously China, India, Taiwan, South Korea, Brazil, Latin America and the like.

So it's very diversified exposure.

Yep.

But it does so in a way which is far more efficient than what we typically see index tracking emerging market ETFs in Australia do.

We invest through an ETF with one of our partners in Europe, a very large asset manager called Amundi.

We actually invest in their fund and we get a rebate through that.

But we're able to do so in a really – their ETF is very tax efficient and it avoids some of those inefficiencies.

And the management fee that we have on our ETF is only 35 basis points.

Exactly.

Now, it's a lot more expensive than the other two funds because, as I said, emerging markets are more expensive to trade in.

But if you compare that fee to the other market capitalization weighted ETFs, it's far cheaper than those solutions.

As low as half.

And the performance of this ETF, because it's so efficient in terms of the way it's structured,

It's basically been in market for around about six months.

It launched in August last year.

And the return that's delivered is almost exactly the same as the emerging market index that it tracks, even after our fee.