EGShares Launches Industry’s First Emerging Markets Consumer Exchange-Traded Fund

EGShares, the only dedicated emerging markets sector ETF provider in the U.S., has launched the Emerging Global Shares Emerging Markets Consumer Titans Index Fund (NYSE: ECON). This is the first ETF that offers investors access to emerging markets companies that we believe are well positioned to benefit from the rapidly growing spending patterns of the middle class in the world’s fastest growing economies. ECON invests in the securities in the Dow Jones Emerging Markets Consumer Titans 30 Index.

“We believe many equity research firms have positioned the emerging market consumer theme as the pre-eminent structural and demographic opportunity for the foreseeable future,” said Robert Holderith, President and CEO of EGShares. “We are pleased to offer investors the first broad-based emerging markets ETF as a way to try to capitalize this investment opportunity.”

The Dow Jones Emerging Markets Consumer Titans Index is a 30-stock index with an average market capitalization of $14.5 billion. The index’s top five industry weights, as of 6/30/10, were General Retailers (16.27%), Automobiles & Parts (14.85%), Beverages (14.24%), Food Producers (13.46%), and Media (10.86%), followed by Food & Drug Retailers, Tobacco, Travel & Leisure, Personal Goods, and Household Goods. ECON charges a net expense ratio of 0.85% (gross expense ratio: 1.20%).*

According to Richard Kang, CIO and Director of Research at EGShares, “One of the primary secular drivers in today’s economic environment is that households in the developed world are deleveraging—spending less, saving more—while those in the emerging markets are moving in the opposite direction. Although the median household income may be small in relation to developed markets, both the large size and young age of the emerging market population make this a key theme for both the near and long term. Today, the West is consuming less but at least others around the globe are picking up the slack.”

Tom Sowanick, co-president and CIO of Omnivest Group, a Princeton, NJ-based investment advisory firm, said the most provocative story for U.S. investors right now is in emerging markets and the key plot points in that story are demographics, urbanization and, of course, consumerism. “Emerging economies will benefit from the three Ds; Demographics, Density and Distance,” said Sowanick, who is the former CIO of Merrill Lynch’s Private Client Group where he spent 25 years in research. “Over the next 20 years, Asia will represent 55% of the world’s urban population, with India and China accounting for 30% of the total.”

Sowanick continued: “Urbanization and the increase of megacities, primarily in India and China, will witness a massive migration to urban cities of nearly 1 billion people. Urbanization will also shift consumer demand from rural appetites to urban appetites. Skyscrapers, transportation, energy consumption and food consumption will increase substantially over the next two decades from this migration and the emergence of a massive middle class.”

The EGShares Emerging Markets Consumer ETF is the ninth ETF to be introduced by EGShares. The company’s other ETFs are the EGShares India Infrastructure ETF (INXX), the EGShares India Small-Cap ETF (SCIN), EGShares Brazil Infrastructure ETF (BRXX), EGShares China Infrastructure ETF (CHXX), EGShares Emerging Markets Metals/Mining ETF (EMT), EGShares Emerging Markets Energy ETF (EEO), EGShares Emerging Markets Financials ETF (EFN) and the EGShares Emerging Markets Composite ETF (EEG).

About Emerging Global Advisors LLC

Emerging Global Advisors LLC is an independent investment advisory firm and the sponsor of the EGShares family of Exchange-Traded Funds. The firm's thematic research focuses primarily on investor opportunities in the emerging markets. More information on the firm and its ETF products can be found at www.egshares.com. EGShares Exchange-Traded Funds are distributed by ALPS Distributors, Inc. Richard Kang and Robert Holderith are registered representatives of ALPS Distributors, Inc. Tom Sowanick and Onvivest Group are unaffiliated with Emerging Global Advisors LLC and ALPS Distributors, Inc.

Carefully consider the Fund's investment objectives, risk factors and charges and expenses before investing. This and other information can be found in the Funds' prospectuses, which may be obtained by calling 1-888-800-4EGS (4347) or by visiting the fund's website www.egshares.com to view or download a prospectus. Read the prospectus carefully before investing. Investing involves risk, including possible loss of principal.These funds are new and not suitable for all investors.

ETFs are subject to risks similar to those of stocks.

Emerging market investments do involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles, from economic or political instability in other nations or increased volatility and lower trading volume. This fund will concentrate its investments in issuers of one or more particular industries to the same extent that its Underlying Index is so concentrated and to the extent permitted by applicable regulatory guidance. Concentration risk results from maintaining exposure to issuers conducting business in a specific industry.

Expires 12/31/11
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* This agreement will remain in effect and will be contractually binding at least until July 29, 2011.