The EGShares EM Core ex-China ETF (XCEM) will allow investors to preserve or maintain emerging market portfolios without increasing their exposure to China. The launch follows a period of stock market turmoil for China after the Shanghai Composite index plummeted 8.5 per cent after “Black Monday”.

The fund will track the EGAI Emerging Markets ex-China Index, a free-floating, market cap-weighted index ranked in line with broad-based, market cap-weighted conventional indices. It offers exposure to 20 countries, including South Korea, Taiwan and India.

“In today's market environment, some investors have noted that China comprises a significant portion of broad-based emerging market benchmarks. That portion is growing as index funds in the category plan to increase their allocations to China through A-shares,” said EGA president, Robert Holderith. 

“We launched XCEM to deliver core emerging market exposure independently of China, giving investors an option to refine their portfolios in light of other China holdings or market developments.”