State Street Global Advisors (SSgA) is planning to launch its second ETF for the Latin American market and has filed paperwork with the SEC for a SPDR S&P MILA 40 ETF. The fund seeks to provide investment results that correspond generally to the total return performance of the S&P MILA 40 Index.
The S&P MILA 40 is designed to provide exposure to the largest 40 stocks trading on the Mercado Integrado Latino Americano (MILA) platform, an integrated trading venture formed by the Chile, Colombia and Per stock exchanges. The S&P MILA 40 is a unique index designed to provide investors with an easily replicable snapshot of investable MILA, comprised of liquid, tradable securities.
In seeking to track the performance of the S&P MILA 40 Index, SSgA employs a sampling strategy, which means that it is not required to purchase all of the securities represented in the Index. It may purchase a subset of the securities in the index in an effort to hold a portfolio of securities with generally the same risk and return characteristics of the Index.
(JDC)