Guggenheim Investments to Launch First Emerging Markets Real Estate ETF

PR Newswire Association LLC

NEW YORK, Sept. 29, 2014 /PRNewswire/ -- Guggenheim Investments, the investment management and advisory business of Guggenheim Partners, today announced the launch of Guggenheim Emerging Markets Real Estate ETF (EMRE), the first ETF to focus exclusively on emerging markets real estate.

Guggenheim Emerging Markets Real Estate ETF (EMRE) invests primarily in publicly traded emerging markets real estate securities that seek to benefit from the growth of the real estate industry and the income typically generated by real estate investments across nearly two dozen emerging market countries.

EMRE seeks investment results that generally correspond to the performance, before fees and expenses, of the AlphaShares Emerging Markets Real Estate Index. The index is designed to measure and monitor the performance of the investable universe of publicly traded companies and real estate investment trusts that derive a majority of their revenues from real estate development, management and/or ownership of property in the countries of the S&P BMI Emerging Markets Index.

EMRE is the fifth ETF in Guggenheim's product line affiliated with index provider AlphaShares, a firm led by Chief Investment Officer Dr. Burton G. Malkiel, author of the widely read investment book, A Random Walk Down Wall Street.

"Emerging markets real estate provides the potential for an attractive return stream that combines the growth potential from these regions' favorable geopolitical and demographic megatrends with an attractive yield component," Dr. Malkiel said. "Investments in emerging markets real estate also may offer added portfolio diversification because of the sector's low correlation to U.S. equities and offer potential protection from inflation in a rising interest rate environment."

EMRE joins Guggenheim's suite of innovative ETFs, which includes the popular lineup of BulletShares® defined-maturity corporate bond and high yield corporate bond ETFs, and such popular strategic beta options as Equal Weight and Pure Style ETFs.

"We're pleased to offer advisors and investors another innovative solution and the first ETF to access one of the most under-exposed areas of the global real estate market," said William Belden, Managing Director, Product Development at Guggenheim Investments.

Emerging markets real estate has expanded from just 2% to 11% of listed global real estate securities in the last 14 years.¹ Trends behind that growth include urbanization, increasing consumerism from an expanding middle class, rising foreign direct investment, and the creation of investment-friendly vehicles that provide access to the local real estate industry. One billion people are expected to enter the global consuming class by 2025², boosting annual consumption in emerging markets to $30 trillion, up from $12 trillion in 2010.³

At its launch, EMRE will invest in Brazil, Chile, China, Egypt, Hong Kong, India, Indonesia, Malaysia, Mexico, Morocco, Philippines, Poland, Russia, South Africa, Singapore, Taiwan, Thailand, and Turkey.

AlphaShares also is the index provider for Guggenheim China Technology ETF (CQQQ), Guggenheim China Small Cap ETF (HAO), Guggenheim China Real Estate ETF (TAO), and Guggenheim China All-Cap ETF (YAO).

About Guggenheim Investments

Guggenheim Investments is the global asset management and investment advisory division of Guggenheim Partners, and manages more than $186 billion⁴ in assets across fixed income, equity, and alternatives. We focus on the return and risk needs of insurance companies, corporate and public pension funds, sovereign wealth funds, endowments and foundations, consultants, wealth managers, and high-net-worth investors. Our 250+ investment professionals perform rigorous research to understand market trends and identify undervalued opportunities in areas that are often complex and underfollowed. This approach to investment management has enabled us to deliver innovative strategies providing diversification and attractive long-term results.

Guggenheim Investments offers investors a broad range of ETPs—domestic and international equity, fixed-income and currency—to provide the core building blocks for portfolios, access to hard-to-reach market segments, as well as targeted investment choices.

Read a fund's prospectus and summary prospectus (if available) carefully before investing. It contains the fund's investment objectives, risks, charges, expenses and other information, which should be considered carefully before investing. Obtain a prospectus and summary prospectus (if available) at www.guggenheiminvestments.com or call 800.820.0888.

The referenced funds are distributed by Guggenheim Funds Distributors, LLC. Guggenheim Investments represents the investment management businesses of Guggenheim Partners, LLC ("Guggenheim"), which includes Guggenheim Funds Investment Advisors, LLC ("GFIA"), the investment advisors to the referenced funds. Guggenheim Funds Distributors, LLC, is affiliated with Guggenheim and GFIA.

Guggenheim Emerging Markets Real Estate ETF may not be suitable for all investors. ? Investing involves risk and special consideration, including the possible loss of principal. ? There are no assurances that the Fund will achieve its investment objective and/or strategy. ? Investments in the real estate industry, including REITS, subjects the Fund to the same risks as direct investments in real estate, which are particularly sensitive to economic downturns. ? Investments in foreign securities carry additional risks when compared to U.S. securities, due to the impact of diplomatic, political or economic developments in the country in question (investments in emerging markets securities are generally subject to an even greater level of risks). Investments in Chinese companies may also involve additional risks. ? Investments in small or medium sized companies may involve greater risk than investing in larger, more established companies. ? Investments in securities of smaller issuers can be more volatile than that of larger issuers. ? Investments in micro-cap stocks involve substantially greater risks of loss and price fluctuations because their earnings and revenues tend to be less predictable and their shares tend to be more volatile and their markets less liquid than companies with larger market capitalizations. ? The Fund is not actively "managed" which means the Fund would not necessarily sell a security because the security's issuer was in financial trouble unless that security is removed from the Index. In addition, the Fund will not otherwise take defensive positions in declining markets unless such positions are reflected in the Index. ? The Fund's returns may not match the return of the Index for a number of reasons. The Fund may not be fully invested at times, either as a result of cash flows into the Fund, reserves of cash held by the Fund to meet redemptions and expenses, or if the Fund uses a "sampling" approach. ? This Fund is considered non-diversified and can invest a greater portion of its assets in securities of individual issuers than a diversified fund. ? Shares may trade below their net asset value ("NAV"). The NAV of shares will fluctuate with changes in the market value of the Fund's holdings. In addition, although the Fund's shares are currently listed on NYSE Arca, Inc. (the "Exchange"), there can be no assurance that an active trading market for shares will develop or be maintained. ? See the Fund's Prospectus for more information on these and other risks.

¹ 2000 data source: FTSE, Standard & Poor's and FactSet (Cohen & Steers "Introduction to Real Estate Securities"). 2014 data source: FTSE/NAREIT.

2 Source: McKinsey Global Institute "Urban world: Cities and the rise of the consuming class" (June 2012).

³ Source: McKinsey & Company. "Winning the $30 trillion decathlon: Going for gold in emerging markets "(August 2012).

⁴ Guggenheim Investments total asset figure is as of 06.30.2014 and includes $12.1bn of leverage for Assets Under Management and $0.4bn of leverage for Serviced Assets. Total assets include assets from Security Investors, LLC, Guggenheim Partners Investment Management, LLC, Guggenheim Funds and its affiliated entities, and some business units including Guggenheim Real Estate, LLC, Guggenheim Aviation, GS GAMMA Advisors, LLC, Guggenheim Partners Europe Limited, Transparent Value Advisors, LLC, and Guggenheim Partners India Management. Values from some funds are based upon prior periods.