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| Name | Symbol | Market | Type |
|---|---|---|---|
| Egshares Emerging Markets Metals & Mining Etf | AMEX:EMT | AMEX | Fund |
| Price Change | % Change | Price | High Price | Low Price | Open Price | Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0 | - |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-22255
| EGA Emerging Global Shares Trust |
| (Exact name of registrant as specified in charter) |
| 171 East Ridgewood Avenue |
| Ridgewood, NJ 07450 |
| (Address of principal executive offices) (Zip code) |
| Robert C. Holderith |
| 171 East Ridgewood Avenue |
| Ridgewood, NJ 07450 |
| (Name and address of agent for service) |
Registrant's telephone number, including area code: 1-201-389-6872
Date of fiscal year end: March 31
Date of reporting period: September 30, 2012
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Reports to Stockholders.
EGA Emerging Global Shares Trust
Semi-Annual Report
September 30, 2012
EGShares Basic Materials GEMS ETF
EGShares Beyond BRICs ETF
EGShares Brazil Infrastructure ETF
EGShares China Infrastructure ETF
EGShares Consumer Goods GEMS ETF
EGShares Consumer Services GEMS ETF
EGShares Emerging Markets Consumer ETF
EGShares Emerging Markets Domestic Demand ETF
EGShares Emerging Markets Metals & Mining ETF
EGShares Energy GEMS ETF
EGShares Financials GEMS ETF
EGShares GEMS Composite ETF
EGShares Health Care GEMS ETF
EGShares India Consumer ETF
EGShares India Infrastructure ETF
EGShares India Small Cap ETF
EGShares Industrials GEMS ETF
EGShares Low Volatility Emerging Markets Dividend ETF
EGShares Technology GEMS ETF
EGShares Telecom GEMS ETF
EGShares Utilities GEMS ETF
Table of Contents
(This page intentionally left blank.)
Letter to Shareholders
November 2012
Dear Shareholder:
As there are now over 130 emerging market equity ETFs (exchange-traded funds), investors have the benefit — and the burden — of choice as to how to obtain optimum emerging market (EM) exposure. Investors have the tools available to invest within, not merely to emerging markets, through multiple options for core, geographic, sector, theme and other types of exposure. Through our EGShares family of ETFs, we have emerged as a leading emerging market asset manager, driving us to adopt a powerful new tagline for the company during the quarter: “The Tools for Emerging Markets.”
EGA’s commitment to product leadership was demonstrated by the two funds we launched during the third quarter. The EGShares Beyond BRICs ETF (BBRC) and the EGShares Emerging Markets Domestic Demand ETF (EMDD) were launched in late August. Both funds provide exposure to what EGA believes will be the countries (BBRC) or sectors (EMDD) that may be best positioned for future growth in the coming years. These were the 20 th and 21 st funds in our ETF portfolio.
From a broader point of view, we are beginning to realize what we have always referred to as “normalization” for investors in emerging markets. Normalization refers to the ability of EM investors to implement investment strategies that are similar to strategies they use in developed markets investing. We see this as a very important step in EM investing becoming a mainstream or core exposure for all investors.
I appreciate your continued support of our firm and its products.
Sincerely,
Robert C. Holderith
Chairman of the Board, EGA Emerging Global Shares Trust
President & Founder, Emerging Global Advisors, LLC
Robert C. Holderith is a registered representative of ALPS Distributors Inc.
EGA Emerging Global Shares Trust 1
Comments from the Chief Investment Officer & Director of Research
Dear Shareholder:
Roughly one year ago, I wrote the previous version of this semi-annual letter and commented extensively on the uncertainties confronting Europe. It is difficult to gauge if the situation is significantly different today than it was then. Certain manufacturing and consumption numbers have improved, but not dramatically. The recent U.S. earnings season, punctuated by disappointment from names like Apple, was poor overall and ended the short bull run in virtually all risk asset classes that began in early June.
An observation: The world stock market bottom was in March of 2009. Since then, major indices representing U.S., emerging market and global stocks show that markets have not been able to sustain a bull run for more than four consecutive quarters. In between these runs, the pullbacks were short but severe. Corrections were usually within a three-month period, with losses from 10% to 30% depending on the index (S&P 500 Index, MSCI World Index). The fact that higher-risk asset classes such as stocks and commodities have largely moved in tandem demonstrates the powerful impact that shifting investor risk tolerance has had on markets globally. This indiscriminate environment continues to be challenging for those focused on securities selection, lending itself more to broad asset allocation decisions.
Over the six-month period ending September 30 th , expected market volatility (as measured by the VIX Index*) has been relatively low, although still higher than before the 2008 financial crisis. Despite this positive indicator, the high level of cash among institutional investors suggests that many are not fully committed to riskier investment positions. Yet with explicit comments from policymakers signaling that accommodative policy — and therefore low interest rates — will be around for at least two more years, the foundation is in place for a sustained bull market in risk assets.
This may be beneficial for investors, but what the global economy needs is for measures such as quantitative easing to spark investment. Not only is there little investment in the Western world where central banks are still, after many years, trying to engineer a financial revival, but their actions may ignite a new currency war. By deploying their domestic or other developed market currencies to chase higher-yielding currencies/rates in the emerging markets, investors are exporting inflation and potentially limiting growth in the regions of the world that have, up to now, sustained enviable levels of growth.
Within this environment, Emerging Global Advisors has remained an innovator in the ETF industry. The EGShares Beyond BRICs ETF (BBRC) and EGShares Emerging Markets Domestic Demand ETF (EMDD) were launched in late August. These funds are designed to help investors gain exposure to what EGA believes will be the countries (BBRC) or sectors (EMDD) that may be best positioned for future growth in coming years. Consistent with our strategic approach, both funds use investible indices to capture their desired market exposure, rather than rely on broad benchmarks that reflect developed country and industry biases.
Lastly, this letter is written while much of the U.S. Northeast is without power. We thank those who have sent their warm wishes to us and we share the concern for our neighbors during this disaster. As Chief Investment Officer trained in risk management, I wish to ensure you that the viability of Emerging Global Advisors LLC and the funds we manage remains unchanged due to this unprecedented weather event. Backups for our operating locations and technology have been in place since the firm’s inception in anticipation of this kind of situation. We care about the integrity of our funds and the processes that govern them and wish to share this assurance with you, our shareholders.
Richard Kang
| * | VIX or The Chicago Board Options Exchange Volatility Index is an index that measures the implied volatility based on the value of S&P 500 Index (a benchmark for large cap US stocks) option contracts. The VIX is often called the “fear gauge” since with significant market declines, investors pay more for portfolio insurance in the form of equity index options causing the price of VIX to rise. |
This manager commentary represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice.
The S&P 500 Index is a broad-based measure of domestic stock market performance. One cannot invest directly in an index.
MSCI World Index is an index that is designed to measure the equity market performance in global emerging markets. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used to create indices or financial products. This report is not approved or produced by MSCI.
2 EGA Emerging Global Shares Trust
Portfolio Summary
(Unaudited)
EGShares Basic Materials GEMS ETF
Industry Breakdown*
Top Ten Holdings*
| Vale SA Preference A Shares ADR | 9.3% |
| AngloGold Ashanti, Ltd. ADR | 6.6 |
| China Shenhua Energy Co., Ltd. Class H | 6.6 |
| MMC Norilsk Nickel OJSC ADR | 5.6 |
| Uralkali OJSC GDR | 5.5 |
| Impala Platinum Holdings, Ltd. | 4.9 |
| Grupo Mexico SAB de CV Series B | 4.7 |
| Gold Fields, Ltd. ADR | 4.7 |
| Gerdau SA Preference Shares ADR | 4.6 |
| KGHM Polska Miedz SA | 4.1 |
| * | Expressed as a percentage of total investments in securities as of 9/30/2012. Holdings are subject to change. |
EGShares Basic Materials GEMS ETF (ticker: LGEM)
The Fund’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the Dow Jones Emerging Markets Basic Materials Titans 30 Index SM (“Basic Materials Underlying Index”). The Basic Materials Underlying Index is comprised of publicly traded firms in the “Basic Materials Industry,” as defined by the Industry Classification Benchmark (“ICB”).
Emerging market investments 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 investing more than 25% of the Fund’s assets in issuers conducting business in the same industry.
EGA Emerging Global Shares Trust 3
Portfolio Summary
(Unaudited)
EGShares Beyond BRICs ETF
Industry Breakdown*
Top Ten Holdings*
| MTN Group, Ltd. | 4.9% |
| Fomento Economico Mexicano SAB de CV ADR | 4.8 |
| Grupo Modelo SAB de CV Series C | 4.6 |
| America Movil SAB de CV Series L ADR | 4.6 |
| Grupo Mexico SAB de CV Series B | 4.3 |
| Sasol, Ltd. | 4.2 |
| Naspers, Ltd. N Shares | 3.9 |
| FirstRand, Ltd. | 3.0 |
| Astra International Tbk PT | 2.9 |
| PTT PCL | 2.9 |
| * | Expressed as a percentage of total investments in securities as of 9/30/2012. Holdings are subject to change. |
EGShares Beyond BRICs ETF (ticker: BBRC)
The Fund’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the INDXX Beyond BRICs Index (“Underlying Index”). The Underlying Index is comprised of 50 leading companies that INDXX, LLC determines to be representative of all industries in emerging market countries, excluding Brazil, Russia, India and China.
Emerging market investments 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 investing more than 25% of the Fund’s assets in issuers conducting business in the same industry.
4 EGA Emerging Global Shares Trust
Portfolio Summary
(Unaudited)
EGShares Brazil Infrastructure ETF
Industry Breakdown*
Top Ten Holdings*
| CCR SA | 5.9% |
| BR Malls Participacoes SA | 5.6 |
| Companhia Siderurgica Nacional SA | 5.4 |
| Ultrapar Participacoes SA | 5.1 |
| Vale SA | 5.1 |
| Companhia de Saneamento Basico do | |
| Estado de Sao Paulo | 5.0 |
| Embraer SA | 5.0 |
| Oi SA Preference Shares | 4.8 |
| Tractebel Energia SA | 4.6 |
| Telefonica Brasil SA | 4.5 |
| * | Expressed as a percentage of total investments in securities as of 9/30/2012. Holdings are subject to change. |
EGShares Brazil Infrastructure ETF (ticker: BRXX)
The Fund’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the INDXX Brazil Infrastructure Index (“Underlying Index”). The Underlying Index is comprised of 30 leading companies that INDXX, LLC determines to be representative of Brazil’s infrastructure sectors.
Emerging market investments 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 investing more than 25% of the Fund’s assets in issuers conducting business in the same industry. Because the Fund only invests in Brazilian securities, its NAV will be much more sensitive to changes in economic, political and other factors within Brazil than would a fund that invested in a greater variety of countries. Special risks include, among others, political and legal uncertainty, persistent religious, ethnic and border disputes, greater government control over the economy, currency fluctuations or blockage and the risk of nationalization or expropriation of assets.
EGA Emerging Global Shares Trust 5
Portfolio Summary
(Unaudited)
EGShares China Infrastructure ETF
Industry Breakdown*
Top Ten Holdings*
| Anhui Conch Cement Co., Ltd. Class H | 6.0% |
| China Oilfield Services, Ltd. Class H | 5.5 |
| China Telecom Corp., Ltd. Class H | 5.3 |
| Huaneng Power International, Inc. Class H | 5.2 |
| Jiangxi Copper Co., Ltd. Class H | 5.1 |
| China Railway Construction Corp., Ltd. Class H | 5.1 |
| China Railway Group, Ltd. Class H | 5.1 |
| China Unicom Hong Kong, Ltd. | 4.8 |
| Aluminum Corp. of China, Ltd. Class H | 4.6 |
| Changsha Zoomlion Heavy Industry Science And | |
| Technology Development Co., Ltd. Class H | 4.6 |
| * | Expressed as a percentage of total investments in securities as of 9/30/2012. Holdings are subject to change. |
EGShares China Infrastructure ETF (ticker: CHXX)
The Fund’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the INDXX China Infrastructure Index (“Underlying Index”). The Underlying Index is comprised of 30 leading companies that INDXX, LLC determines to be representative of China’s infrastructure sectors.
Emerging market investments 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 investing more than 25% of the Fund’s assets in issuers conducting business in the same industry. Because the Fund only invests in Chinese securities, its NAV will be much more sensitive to changes in economic, political and other factors within China than would a fund that invested in a greater variety of countries. Special risks include, among others, political and legal uncertainty, persistent religious, ethnic and border disputes, greater government control over the economy, currency fluctuations or blockage and the risk of nationalization or expropriation of assets.
6 EGA Emerging Global Shares Trust
Portfolio Summary
(Unaudited)
EGShares Consumer Goods GEMS ETF
Industry Breakdown*
Top Ten Holdings*
| Companhia de Bebidas das Americas Preference | |
| Shares ADR | 9.9% |
| Fomento Economico Mexicano SAB de CV ADR | 7.4 |
| Astra International Tbk PT | 6.7 |
| BRF - Brasil Foods SA ADR | 5.5 |
| Hindustan Unilever, Ltd. | 5.4 |
| ITC, Ltd. | 5.1 |
| Tiger Brands, Ltd. | 3.9 |
| Grupo Bimbo SAB de CV Series A | 3.8 |
| Grupo Modelo SAB de CV Series C | 3.6 |
| Arca Continental SAB de CV | 3.6 |
| * | Expressed as a percentage of total investments in securities as of 9/30/2012. Holdings are subject to change. |
EGShares Consumer Goods GEMS ETF (ticker: GGEM)
The Fund’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the Dow Jones Emerging Markets Consumer Goods Titans 30 Index SM (“Consumer Goods Underlying Index”). The Consumer Goods Underlying Index is comprised of publicly traded firms in the “Consumer Goods Industry,” as defined by the Industry Classification Benchmark (“ICB”).
Emerging market investments 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 investing more than 25% of the Fund’s assets in issuers conducting business in the same industry.
EGA Emerging Global Shares Trust 7
Portfolio Summary
(Unaudited)
EGShares Consumer Services GEMS ETF
Industry Breakdown*
Top Ten Holdings*
| Naspers, Ltd. N Shares | 10.3% |
| Wal-Mart de Mexico SAB de CV Series V | 7.4 |
| Magnit OJSC GDR | 6.0 |
| Lan Airlines SA ADR | 5.6 |
| S.A.C.I. Falabella | 5.0 |
| Shoprite Holdings, Ltd. | 4.4 |
| Steinhoff International Holdings, Ltd. | 4.2 |
| Grupo Televisa SAB ADR | 4.1 |
| Truworths International, Ltd. | 4.0 |
| Companhia Brasileira de Distribuicao Grupo Pao de | |
| Acucar Preference Shares ADR | 4.0 |
| * | Expressed as a percentage of total investments in securities as of 9/30/2012. Holdings are subject to change. |
EGShares Consumer Services GEMS ETF (ticker: VGEM)
The Fund’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the Dow Jones Emerging Markets Consumer Services Titans 30 Index SM (“Consumer Services Underlying Index”). The Consumer Services Underlying Index is comprised of publicly traded firms in the “Consumer Services Industry,” as defined by the Industry Classification Benchmark (“ICB”).
Emerging market investments 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 investing more than 25% of the Fund’s assets in issuers conducting business in the same industry.
8 EGA Emerging Global Shares Trust
Portfolio Summary
(Unaudited)
EGShares Emerging Markets Consumer ETF
Industry Breakdown*
Top Ten Holdings*
| Companhia de Bebidas das Americas Preference | |
| Shares ADR | 9.9% |
| Naspers, Ltd. N Shares | 9.0 |
|
Fomento Economico Mexicano SAB de CV
Series UB |
6.3 |
| Wal-Mart de Mexico SAB de CV Series V | 5.9 |
| Astra International TBK PT | 5.9 |
| BRF - Brasil Foods SA ADR | 4.4 |
| ITC, Ltd. | 4.2 |
| Hindustan Unilever, Ltd. | 4.2 |
| Magnit OJSC GDR | 3.9 |
| S.A.C.I. Falabella | 3.7 |
| * | Expressed as a percentage of total investments in securities as of 9/30/2012. Holdings are subject to change. |
EGShares Emerging Markets Consumer ETF (ticker: ECON)
The Fund’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the Dow Jones Emerging Markets Consumer Titans 30 Index SM (“Consumer Underlying Index”). The Consumer Underlying Index is comprised of 30 publicly traded firms in the “Consumer Goods Industry” and “Consumer Services Industry,” as defined by the Industry Classification Benchmark (“ICB”).
Emerging market investments 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 investing more than 25% of the Fund’s assets in issuers conducting business in the same industry.
EGA Emerging Global Shares Trust 9
Portfolio Summary
(Unaudited)
EGShares Emerging Markets Domestic Demand ETF
Industry Breakdown*
Top Ten Holdings*
| ITC, Ltd. | 5.3% |
| China Telecom Corp., Ltd. Class H | 5.2 |
| Fomento Economico Mexicano SAB de CV ADR | 4.9 |
| MTN Group, Ltd. | 4.9 |
| Grupo Modelo SAB de CV Series C | 4.8 |
| Companhia de Bebidas das Americas Preference | |
| Shares ADR | 4.7 |
| America Movil SAB de CV Series L ADR | 4.6 |
| Naspers, Ltd. N Shares | 4.2 |
| Astra International Tbk PT | 3.3 |
| Wal-Mart de Mexico SAB de CV Series V | 3.3 |
| * | Expressed as a percentage of total investments in securities as of 9/30/2012. Holdings are subject to change. |
EGShares Emerging Markets Domestic Demand ETF (ticker: EMDD)
The Fund’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the INDXX Emerging Markets Domestic Demand Index (“Underlying Index”). The Underlying Index is comprised of 50 emerging markets companies in sectors INDXX, LLC determines may have greater exposure to local markets than the MSCI Emerging Markets Index SM .
Emerging market investments 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 investing more than 25% of the Fund’s assets in issuers conducting business in the same industry.
10 EGA Emerging Global Shares Trust
Portfolio Summary
(Unaudited)
EGShares Emerging Markets Metals & Mining ETF
Industry Breakdown*
Top Ten Holdings*
| Vale SA ADR | 9.3% |
| AngloGold Ashanti, Ltd. | 6.9 |
| China Shenhua Energy Co., Ltd. Class H | 6.5 |
| MMC Norilsk Nickel OJSC ADR | 6.0 |
| Gold Fields, Ltd. | 5.4 |
| Impala Platinum Holdings, Ltd. | 5.2 |
| Gerdau SA Preference Shares ADR | 4.7 |
| Grupo Mexico SAB de CV Series B | 4.6 |
| KGHM Polska Miedz SA | 4.4 |
| Industrias Penoles SAB de CV | 4.1 |
| * | Expressed as a percentage of total investments in securities as of 9/30/2012. Holdings are subject to change. |
EGShares Emerging Markets Metals & Mining ETF (ticker: EMT)
The Fund’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the Dow Jones Emerging Markets Metals & Mining Titans 30 Index SM (“Metals & Mining Underlying Index”). The Metals & Mining Underlying Index is comprised of 30 publicly traded firms in the “Industrial Metals and Mining Sector” and “Mining Sector,” as defined by the Industry Classification Benchmark (“ICB”).
Emerging market investments 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 investing more than 25% of the Fund’s assets in issuers conducting business in the same industry.
EGA Emerging Global Shares Trust 11
Portfolio Summary
(Unaudited)
EGShares Energy GEMS ETF
Industry Breakdown*
Top Ten Holdings*
| Gazprom OAO ADR | 9.4% |
| Petroleo Brasileiro SA ADR | 7.4 |
| CNOOC, Ltd. | 7.1 |
| LUKOIL OAO ADR | 6.7 |
| PetroChina Co., Ltd. Class H | 6.3 |
| Reliance Industries, Ltd. GDR 144A | 6.2 |
| China Petroleum & Chemical Corp. Class H | 4.5 |
| Sasol, Ltd. | 4.5 |
| NovaTek OAO ADR | 4.4 |
| Ecopetrol SA ADR | 4.3 |
| * | Expressed as a percentage of total investments in securities as of 9/30/2012. Holdings are subject to change. |
EGShares Energy GEMS ETF (ticker: OGEM)
The Fund’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the Dow Jones Emerging Markets Oil and Gas Titans 30 Index SM (“Oil and Gas Underlying Index”). The Oil and Gas Underlying Index is comprised of publicly traded firms in the “Oil and Gas Industry,” as defined by the Industry Classification Benchmark (“ICB”).
Emerging market investments 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 investing more than 25% of the Fund’s assets in issuers conducting business in the same industry.
12 EGA Emerging Global Shares Trust
Portfolio Summary
(Unaudited)
EGShares Financials GEMS ETF
Industry Breakdown*
Top Ten Holdings*
| China Construction Bank Corp. Class H | 10.3% |
|
Industrial and Commercial Bank of China, Ltd.
Class H |
9.2 |
| Itau Unibanco Holding SA Preference Shares ADR | 6.8 |
| Banco Bradesco SA Preference Shares ADR | 6.3 |
| Sberbank of Russia ADR | 5.5 |
| Bank of China, Ltd. Class H | 5.5 |
| Housing Development Finance Corp., Ltd. | 4.9 |
| China Life Insurance Co., Ltd. Class H | 4.3 |
| Standard Bank Group, Ltd. | 3.6 |
| HDFC Bank, Ltd. ADR | 3.3 |
| * | Expressed as a percentage of total investments in securities as of 9/30/2012. Holdings are subject to change. |
EGShares Financials GEMS ETF (ticker: FGEM)
The Fund’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the Dow Jones Emerging Markets Financials Titans 30 Index SM (“Financials Underlying Index”). The Financials Underlying Index is comprised of publicly traded firms in the “Financials Industry,” as defined by the Industry Classification Benchmark (“ICB”).
Emerging market investments 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 investing more than 25% of the Fund’s assets in issuers conducting business in the same industry.
EGA Emerging Global Shares Trust 13
Portfolio Summary
(Unaudited)
EGShares GEMS Composite ETF
Industry Breakdown*
Top Ten Holdings*
| America Movil SAB de CV Series L | 5.0% |
| Gazprom OAO ADR | 4.7 |
| China Mobile, Ltd. | 4.3 |
| China Construction Bank Corp. Class H | 4.3 |
|
Industrial and Commercial Bank of China, Ltd.
Class H |
3.7 |
| Petroleo Brasileiro SA ADR | 2.9 |
| Itau Unibanco Holding SA Preference Shares ADR | 2.6 |
| CNOOC, Ltd. | 2.5 |
| Baidu, Inc. ADR | 2.4 |
| LUKOIL OAO ADR | 2.4 |
| * | Expressed as a percentage of total investments in securities as of 9/30/2012. Holdings are subject to change. |
EGShares GEMS Composite ETF (ticker: AGEM)
The Fund’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the Dow Jones Emerging Markets Sector Titans Composite 100 Index SM (“Sector Underlying Index”). The Sector Underlying Index is comprised of a representative sample of 100 Emerging Markets companies deemed to be the 10 leading companies in each of the 10 “Industries,” as defined by the Industry Classification Benchmark (“ICB”).
Emerging market investments 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 investing more than 25% of the Fund’s assets in issuers conducting business in the same industry.
14 EGA Emerging Global Shares Trust
Portfolio Summary
(Unaudited)
EGShares Health Care GEMS ETF
Industry Breakdown*
Top Ten Holdings*
| Aspen Pharmacare Holdings, Ltd. | 10.0% |
| Sun Pharmaceutical Industries, Ltd. | 8.7 |
| Life Healthcare Group Holdings, Ltd. | 7.1 |
| Mindray Medical International, Ltd. ADR | 5.4 |
| Dr. Reddy's Laboratories, Ltd. ADR | 4.9 |
| Cipla, Ltd. | 4.8 |
| Shandong Weigao Group Medical Polymer Co., Ltd. | |
| Class H | 4.8 |
| Netcare, Ltd. | 4.8 |
| Sinopharm Group Co. Class H | 4.5 |
| Richter Gedeon Nyrt. | 4.4 |
| * | Expressed as a percentage of total investments in securities as of 9/30/2012. Holdings are subject to change. |
EGShares Health Care GEMS ETF (ticker: HGEM)
The Fund’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the Dow Jones Emerging Markets Health Care Titans 30 Index SM (“Health Care Underlying Index”). The Health Care Underlying Index is comprised of publicly traded firms in the “Health Care Industry,” as defined by the Industry Classification Benchmark (“ICB”).
Emerging market investments 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 investing more than 25% of the Fund’s assets in issuers conducting business in the same industry.
EGA Emerging Global Shares Trust 15
Portfolio Summary
(Unaudited)
EGShares India Consumer ETF
Industry Breakdown*
Top Ten Holdings*
| United Spirits, Ltd. | 7.9% |
| Hindustan Unilever, Ltd. | 5.8 |
| United Breweries, Ltd. | 5.8 |
| Godrej Consumer Products, Ltd. | 5.6 |
| ITC, Ltd. | 5.4 |
| Mahindra & Mahindra, Ltd. | 4.9 |
| GlaxoSmithKline Consumer Healthcare, Ltd. | 4.7 |
| Zee Entertainment Enterprises, Ltd. | 4.7 |
| Titan Industries, Ltd. | 4.7 |
| Tata Global Beverages, Ltd. | 4.6 |
| * | Expressed as a percentage of total investments in securities as of 9/30/2012. Holdings are subject to change. |
EGShares India Consumer ETF (ticker: INCO)
The Fund’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the INDXX India Consumer Index (“Consumer Underlying Index”). The Underlying Index is comprised of 30 leading companies that INDXX, LLC determines to be representative of India’s consumer sector.
Emerging market investments 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 investing more than 25% of the Fund’s assets in issuers conducting business in the same industry. Small cap and mid cap companies generally will have greater volatility in price than the stocks of large companies due to limited product lines or resources or a dependency upon a particular market niche. Because the Fund only invests in Indian securities, its NAV will be much more sensitive to changes in economic, political and other factors within India than would a fund that invested in a greater variety of countries. Special risks include, among others, political and legal uncertainty, persistent religious, ethnic and border disputes, greater government control over the economy, currency fluctuations or blockage and the risk of nationalization or expropriation of assets.
16 EGA Emerging Global Shares Trust
Portfolio Summary
(Unaudited)
EGShares India Infrastructure ETF
Industry Breakdown*
Top Ten Holdings*
| ACC, Ltd. | 5.2% |
| Ambuja Cements, Ltd. | 5.1 |
| Bharat Heavy Electricals, Ltd. | 5.0 |
| Tata Power Co., Ltd. | 5.0 |
| GAIL India, Ltd. | 5.0 |
| Larsen & Toubro, Ltd. | 4.9 |
| Jindal Steel & Power, Ltd. | 4.8 |
| Jaiprakash Associates, Ltd. | 4.8 |
| NTPC, Ltd. | 4.7 |
| Tata Motors, Ltd. | 4.7 |
| * | Expressed as a percentage of total investments in securities as of 9/30/2012. Holdings are subject to change. |
EGShares India Infrastructure ETF (ticker: INXX)
The Fund’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the INDXX India Infrastructure Index (“Underlying Index”). The Underlying Index is comprised of 30 leading companies that INDXX, LLC determines to be representative of India’s infrastructure sectors.
Emerging market investments 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 investing more than 25% of the Fund’s assets in issuers conducting business in the same industry. Because the Fund only invests in Indian securities, its NAV will be much more sensitive to changes in economic, political and other factors within India than would a fund that invested in a greater variety of countries. Special risks include, among others, political and legal uncertainty, persistent religious, ethnic and border disputes, greater government control over the economy, currency fluctuations or blockage and the risk of nationalization or expropriation of assets.
EGA Emerging Global Shares Trust 17
Portfolio Summary
(Unaudited)
EGShares India Small Cap ETF
Industry Breakdown*
Top Ten Holdings*
| Federal Bank, Ltd. | 4.5% |
| Apollo Hospitals Enterprise, Ltd. | 4.2 |
| Glenmark Pharmaceuticals, Ltd. | 3.5 |
| Tata Global Beverages, Ltd. | 3.5 |
| Crompton Greaves, Ltd. | 2.9 |
| Indiabulls Financial Services, Ltd. | 2.7 |
| United Phosphorus, Ltd. | 2.6 |
| Bharat Forge, Ltd. | 2.5 |
| Jubilant Foodworks, Ltd. | 2.4 |
| Tech Mahindra, Ltd. | 2.3 |
| * | Expressed as a percentage of total investments in securities as of 9/30/2012. Holdings are subject to change. |
EGShares India Small Cap ETF (ticker: SCIN)
The Fund’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the INDXX India Small Cap Index (“Underlying Index”). The Underlying Index is comprised of 30 leading companies that INDXX, LLC determines to be representative of small market cap companies in India.
Emerging market investments 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 investing more than 25% of the Fund’s assets in issuers conducting business in the same industry. Because the Fund only invests in Indian securities, its NAV will be much more sensitive to changes in economic, political and other factors within India than would a fund that invested in a greater variety of countries. Special risks include, among others, political and legal uncertainty, persistent religious, ethnic and border disputes, greater government control over the economy, currency fluctuations or blockage and the risk of nationalization or expropriation of assets.
18 EGA Emerging Global Shares Trust
Portfolio Summary
(Unaudited)
EGShares Industrials GEMS ETF
Industry Breakdown*
Top Ten Holdings*
| Cemex SAB de CV ADR | 8.1% |
| Sime Darby Bhd | 7.0 |
| Bidvest Group, Ltd. | 6.1 |
| Alfa, SAB Class A | 4.8 |
| Mahindra & Mahindra, Ltd. | 4.7 |
| Tata Motors, Ltd. ADR | 4.5 |
| Imperial Holdings, Ltd. | 4.5 |
| Larsen & Toubro, Ltd. | 4.1 |
| Semen Gresik Persero Tbk PT | 4.0 |
| Embraer SA ADR | 3.9 |
| * | Expressed as a percentage of total investments in securities as of 9/30/2012. Holdings are subject to change. |
EGShares Industrials GEMS ETF (ticker: IGEM)
The Fund’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the Dow Jones Emerging Markets Industrials Titans 30 Index SM (“Industrials Underlying Index”). The Industrials is comprised of publicly traded firms in the “Industrials Industry,” as defined by the Industry Classification Benchmark (“ICB”).
Emerging market investments 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 investing more than 25% of the Fund’s assets in issuers conducting business in the same industry.
EGA Emerging Global Shares Trust 19
Portfolio Summary
(Unaudited)
EGShares Low Volatility Emerging Markets Dividend ETF
Industry Breakdown*
Top Ten Holdings*
| Indiabulls Financial Services, Ltd. | 5.5% |
| Turk Traktor ve Ziraat Makineleri AS | 5.2 |
| Redefine Properties Ltd. | 5.0 |
| Shin Corp. PCL | 5.0 |
| Telekomunikacja Polska SA | 4.9 |
| Vodacom Group, Ltd. | 4.9 |
| Lewis Group Ltd. | 4.4 |
| Maxis BHD | 4.0 |
| Ecopetrol SA ADR | 3.9 |
| Growthpoint Properties Ltd. | 3.7 |
| * | Expressed as a percentage of total investments in securities as of 9/30/2012. Holdings are subject to change. |
EGShares Low Volatility Emerging Markets Dividend ETF (ticker: HILO)
The Fund’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the INDXX Emerging Market High Income Low Beta Index (“HILB Underlying Index”). The HILB Underlying Index consists of companies whose shares are publicly traded in Emerging Markets countries, such as Chile, Columbia, Czech Republic, Egypt, Hungary, Indonesia, Jordan, Kuwait, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, Slovenia, South Africa, Brazil, China, India, Thailand and Turkey.
Emerging market investments 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 investing more than 25% of the Fund’s assets in issuers conducting business in the same industry.
20 EGA Emerging Global Shares Trust
Portfolio Summary
(Unaudited)
EGShares Technology GEMS ETF
Industry Breakdown*
Top Ten Holdings*
| Baidu, Inc. ADR | 10.3% |
| Infosys, Ltd. ADR | 8.9 |
| Tata Consultancy Services, Ltd. | 6.6 |
| Lenovo Group, Ltd. | 5.2 |
| SINA Corp. | 4.7 |
| NetEase.com, Inc. ADR | 4.6 |
| Wipro, Ltd. ADR | 4.3 |
| Mail.ru Group, Ltd. GDR | 3.4 |
| Satyam Computer Services, Ltd. | 3.3 |
|
China Communications Services Corp., Ltd.
Class H |
3.3 |
| * | Expressed as a percentage of total investments in securities as of 9/30/2012. Holdings are subject to change. |
EGShares Technology GEMS ETF (ticker: QGEM)
The Fund’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the Dow Jones Emerging Markets Technology Titans 30 Index SM (“Technology Underlying Index”). The Technology Underlying Index is comprised of publicly traded firms in the “Technology Industry,” as defined by the Industry Classification Benchmark (“ICB”).
Emerging market investments 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 investing more than 25% of the Fund’s assets in issuers conducting business in the same industry.
EGA Emerging Global Shares Trust 21
Portfolio Summary
(Unaudited)
EGShares Telecom GEMS ETF
Industry Breakdown*
Top Ten Holdings*
| America Movil SAB de CV Series L ADR | 10.1% |
| China Mobile, Ltd. | 9.8 |
| MTN Group, Ltd. | 7.1 |
| Telekomunikasi Indonesia Tbk PT ADR | 4.2 |
| Advanced Info Service PCL | 4.0 |
| Mobile TeleSystems ADR | 4.0 |
| Axiata Group BHD | 3.8 |
| China Telecom Corp., Ltd. Class H | 3.8 |
| China Unicom Hong Kong, Ltd. ADR | 3.4 |
| Telefonica Brasil SA Preference Shares ADR | 3.4 |
| * | Expressed as a percentage of total investments in securities as of 9/30/2012. Holdings are subject to change. |
EGShares Telecom GEMS ETF (ticker: TGEM)
The Fund’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the Dow Jones Emerging Markets Telecommunications Titans 30 Index SM (“Telecom Underlying Index”). The Telecom Underlying Index is comprised of publicly traded firms in the “Telecommunications Industry,” as defined by the Industry Classification Benchmark (“ICB”).
Emerging market investments 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 investing more than 25% of the Fund’s assets in issuers conducting business in the same industry.
22 EGA Emerging Global Shares Trust
Portfolio Summary
(Unaudited)
EGShares Utilities GEMS ETF
Industry Breakdown*
Top Ten Holdings*
| Ultrapar Participacoes SA ADR | 9.5% |
| CEZ AS | 6.5 |
| Companhia Energetica de Minas Gerais ADR | 6.3 |
| Empresa Nacional de Electricidad SA ADR | 5.6 |
| Tenaga Nasional BHD | 5.4 |
| Companhia de Saneamento Basico do Estado de | |
| Sao Paulo ADR | 5.1 |
| Perusahaan Gas Negara PT | 4.8 |
| PGE SA | 4.6 |
| NTPC, Ltd. | 4.4 |
| Enersis SA ADR | 4.3 |
| * | Expressed as a percentage of total investments in securities as of 9/30/2012. Holdings are subject to change. |
EGShares Utilities GEMS ETF (ticker: UGEM)
The Fund’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the Dow Jones Emerging Markets Utilities Titans 30 Index SM (“Utilities Underlying Index”). The Utilities Underlying Index is comprised of publicly traded firms in the “Utilities Industry,” as defined by the Industry Classification Benchmark (“ICB”).
Emerging market investments 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 investing more than 25% of the Fund’s assets in issuers conducting business in the same industry.
EGA Emerging Global Shares Trust 23
Shareholder Expense Examples (Unaudited)
As a shareholder of an EGA Emerging Global Shares Trust ETF, you incur advisory fees and other Fund expenses. The following example is intended to help you understand your ongoing costs (in dollars and cents) of investing in a Fund and to compare these costs with the ongoing costs of investing in other funds. The example is based on an investment of $1,000 invested at the beginning of the period and held throughout the entire period (April 1, 2012 to September 30, 2012).
Actual expenses
The first line under each Fund in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line for your Fund under the heading entitled “Expenses Paid Through 9/30/2012” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The second line under each Fund in the table provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales of Fund shares. Therefore, the second line under each Fund in the table is useful in comparing ongoing Fund costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
24 EGA Emerging Global Shares Trust
Shareholder Expense Examples (Unaudited) (continued)
| Beginning | Ending | Annualized | Expenses Paid | |
| Account Value | Account Value | Expense Ratios | Through | |
| 4/1/2012 | 9/30/2012 | for the Period | 9/30/2012 1 | |
| EGShares Basic Materials GEMS ETF (Consolidated) 2 | ||||
| Actual | $1,000.00 | $ 894.97 | 0.85% | $4.04 |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,020.81 | 0.85% | $4.31 |
| EGShares Beyond BRICs ETF | ||||
| Actual | $1,000.00 | $1,028.00 | 0.85% | $1.11 |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,020.81 | 0.85% | $4.31 |
| EGShares Brazil Infrastructure ETF | ||||
| Actual | $1,000.00 | $ 867.00 | 0.85% | $3.98 |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,020.81 | 0.85% | $4.31 |
| EGShares China Infrastructure ETF | ||||
| Actual | $1,000.00 | $ 982.93 | 0.85% | $4.23 |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,020.81 | 0.85% | $4.31 |
| EGShares Consumer Goods GEMS ETF (Consolidated) 2 | ||||
| Actual | $1,000.00 | $1,010.42 | 0.85% | $4.28 |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,020.81 | 0.85% | $4.31 |
| EGShares Consumer Services GEMS ETF | ||||
| Actual | $1,000.00 | $ 964.54 | 0.85% | $4.19 |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,020.81 | 0.85% | $4.31 |
| EGShares Emerging Markets Consumer ETF (Consolidated) 2 | ||||
| Actual | $1,000.00 | $ 985.47 | 0.85% | $4.23 |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,020.81 | 0.85% | $4.31 |
| EGShares Emerging Markets Domestic Demand ETF (Consolidated) 2 | ||||
| Actual | $1,000.00 | $1,027.00 | 0.85% | $1.11 |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,020.81 | 0.85% | $4.31 |
| EGShares Emerging Markets Metals & Mining ETF (Consolidated) 2 | ||||
| Actual | $1,000.00 | $ 881.03 | 0.85% | $4.01 |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,020.81 | 0.85% | $4.31 |
| EGShares Energy GEMS ETF (Consolidated) 2 | ||||
| Actual | $1,000.00 | $ 959.09 | 0.85% | $4.17 |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,020.81 | 0.85% | $4.31 |
| EGShares Financials GEMS ETF (Consolidated) 2 | ||||
| Actual | $1,000.00 | $ 974.14 | 0.85% | $4.21 |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,020.81 | 0.85% | $4.31 |
| EGShares GEMS Composite ETF (Consolidated) 2 | ||||
| Actual | $1,000.00 | $ 961.82 | 0.75% | $3.69 |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,021.31 | 0.75% | $3.80 |
| EGShares Health Care GEMS ETF (Consolidated) 2 | ||||
| Actual | $1,000.00 | $1,107.39 | 0.85% | $4.49 |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,020.81 | 0.85% | $4.31 |
| EGShares India Consumer ETF (Consolidated) 2 | ||||
| Actual | $1,000.00 | $1,157.23 | 0.89% | $4.81 |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,020.61 | 0.89% | $4.51 |
| EGShares India Infrastructure ETF (Consolidated) 2 | ||||
| Actual | $1,000.00 | $ 979.32 | 0.85% | $4.22 |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,020.81 | 0.85% | $4.31 |
| EGShares India Small Cap ETF (Consolidated) 2 | ||||
| Actual | $1,000.00 | $1,010.42 | 0.85% | $4.28 |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,020.81 | 0.85% | $4.31 |
| EGShares Industrials GEMS ETF (Consolidated) 2 | ||||
| Actual | $1,000.00 | $ 999.47 | 0.85% | $4.26 |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,020.81 | 0.85% | $4.31 |
EGA Emerging Global Shares Trust 25
Shareholder Expense Examples (Unaudited) (concluded)
| Beginning | Ending | Annualized | Expenses Paid | |
| Account Value | Account Value | Expense Ratios | Through | |
| 4/1/2012 | 9/30/2012 | for the Period | 9/30/2012 1 | |
| EGShares Low Volatility Emerging Markets Dividend ETF (Consolidated) 2 | ||||
| Actual | $1,000.00 | $ 958.92 | 0.85% | $4.17 |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,020.81 | 0.85% | $4.31 |
| EGShares Technology GEMS ETF (Consolidated) 2 | ||||
| Actual | $1,000.00 | $ 956.57 | 0.85% | $4.17 |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,020.81 | 0.85% | $4.31 |
| EGShares Telecom GEMS ETF (Consolidated) 2 | ||||
| Actual | $1,000.00 | $1,027.21 | 0.85% | $4.32 |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,020.81 | 0.85% | $4.31 |
| EGShares Utilities GEMS ETF (Consolidated) 2 | ||||
| Actual | $1,000.00 | $ 930.07 | 0.85% | $4.11 |
| Hypothetical (5% return before expenses) | $1,000.00 | $1,020.81 | 0.85% | $4.31 |
| 1 | Expenses are calculated using each Fund's annualized expense ratio, which includes waived fees or reimbursed expenses, multiplied by the average account value for the period, multiplied by 183/365 (to reflect the six-month period). |
| 2 | Expenses for these Funds include the accounts of wholly owned subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation. See Note 2 in the Notes to Financial Statements. |
26 EGA Emerging Global Shares Trust
Frequency Distribution of Premium and Discount (Unaudited)
The chart below presents information about differences between the per share net asset value (“NAV”) of each Fund and the market trading price of shares of each Fund. For these purposes, the “market price” is the midpoint of the highest bid and lowest offer for Fund shares as of the close of trading on the exchange where Fund shares are listed. The term “premium” is sometimes used to describe a market price in excess of NAV and the term “discount” is sometimes used to describe a market price below NAV. The chart presents information about the size and frequency of premiums or discounts. As with other exchange traded funds, the market price of Fund shares is typically slightly higher or lower than the Fund’s per share NAV. Factors that contribute to the differences between market price and NAV include the supply and demand for Fund shares and investors’ assessments of the underlying value of a Fund’s portfolio securities.
Differences between the closing times of U.S. and non-U.S. markets may contribute to differences between the NAV and market price of Fund shares. Many non-U.S. markets close prior to the close of the U.S. securities exchanges. Developments after the close of such markets as a result of ongoing price discovery may be reflected in a Fund’s market price but not in its NAV (or vice versa).
|
Market Price
Above or Equal to NAV |
Market Price
Below NAV |
||||
|
Basis Point
Differential |
Number
of Days |
% of
Total Days |
Number
of Days |
% of
Total Days |
|
| EGShares Basic Materials GEMS ETF | |||||
| June 23, 2011*–September 30, 2012 | |||||
| 0-24.99 | 36 | 11.22% | 30 | 9.35% | |
| 25-49.99 | 41 | 12.77% | 32 | 9.97% | |
| 50-74.99 | 26 | 8.10% | 20 | 6.23% | |
| 75-99.99 | 21 | 6.54% | 9 | 2.80% | |
| > 100 | 64 | 19.94% | 42 | 13.08% | |
| Total | 188 | 58.57% | 133 | 41.43% | |
| EGShares Beyond BRICs ETF | |||||
| August 15, 2012*–September 30, 2012 | |||||
| 0-24.99 | – | 0.00% | 1 | 3.13% | |
| 25-49.99 | 7 | 21.87% | – | 0.00% | |
| 50-74.99 | 7 | 21.87% | – | 0.00% | |
| 75-99.99 | 11 | 34.38% | – | 0.00% | |
| > 100 | 6 | 18.75% | – | 0.00% | |
| Total | 31 | 96.87% | 1 | 3.13% | |
| EGShares Brazil Infrastructure ETF | |||||
| February 24, 2010*–September 30, 2012 | |||||
| 0-24.99 | 48 | 7.34% | 49 | 7.49% | |
| 25-49.99 | 37 | 5.66% | 47 | 7.19% | |
| 50-74.99 | 24 | 3.67% | 44 | 6.73% | |
| 75-99.99 | 24 | 3.67% | 15 | 2.29% | |
| > 100 | 340 | 51.99% | 26 | 3.97% | |
| Total | 473 | 72.33% | 181 | 27.67% | |
| EGShares China Infrastructure ETF | |||||
| February 17, 2010*–September 30, 2012 | |||||
| 0-24.99 | 68 | 10.30% | 61 | 9.24% | |
| 25-49.99 | 63 | 9.55% | 63 | 9.55% | |
| 50-74.99 | 67 | 10.15% | 44 | 6.67% | |
| 75-99.99 | 50 | 7.58% | 42 | 6.36% | |
| > 100 | 101 | 15.30% | 101 | 15.30% | |
| Total | 349 | 52.88% | 311 | 47.12% | |
| EGShares Consumer Goods GEMS ETF | |||||
| June 23, 2011*–September 30, 2012 | |||||
| 0-24.99 | 47 | 14.64% | 45 | 14.02% | |
| 25-49.99 | 35 | 10.90% | 41 | 12.77% | |
| 50-74.99 | 29 | 9.04% | 26 | 8.10% | |
| 75-99.99 | 19 | 5.92% | 22 | 6.85% | |
| > 100 | 18 | 5.61% | 39 | 12.15% | |
| Total | 148 | 46.11% | 173 | 53.89% | |
EGA Emerging Global Shares Trust 27
Frequency Distribution of Premium and Discount (Unaudited) (continued)
|
Market Price
Above or Equal to NAV |
Market Price
Below NAV |
||||
|
Basis Point
Differential |
Number
of Days |
% of
Total Days |
Number
of Days |
% of
Total Days |
|
| EGShares Consumer Services GEMS ETF | |||||
| June 23, 2011*–September 30, 2012 | |||||
| 0-24.99 | 50 | 15.58% | 63 | 19.63% | |
| 25-49.99 | 33 | 10.28% | 41 | 12.77% | |
| 50-74.99 | 15 | 4.67% | 38 | 11.84% | |
| 75-99.99 | 3 | 0.93% | 30 | 9.34% | |
| > 100 | 4 | 1.25% | 44 | 13.71% | |
| Total | 105 | 32.71% | 216 | 67.29% | |
| EGShares Emerging Markets Consumer ETF | |||||
| September 14, 2010*–September 30, 2012 | |||||
| 0-24.99 | 84 | 16.22% | 72 | 13.90% | |
| 25-49.99 | 125 | 24.13% | 29 | 5.60% | |
| 50-74.99 | 97 | 18.73% | 14 | 2.70% | |
| 75-99.99 | 46 | 8.88% | 11 | 2.12% | |
| > 100 | 26 | 5.02% | 14 | 2.70% | |
| Total | 378 | 72.98% | 140 | 27.02% | |
| EGShares Emerging Markets Domestic Demand ETF | |||||
| August 15, 2012*–September 30, 2012 | |||||
| 0-24.99 | 1 | 3.12% | 2 | 6.25% | |
| 25-49.99 | 10 | 31.25% | – | 0.00% | |
| 50-74.99 | 11 | 34.38% | – | 0.00% | |
| 75-99.99 | 6 | 18.75% | – | 0.00% | |
| > 100 | 2 | 6.25% | – | 0.00% | |
| Total | 30 | 93.75% | 2 | 6.25% | |
| EGShares Emerging Markets Metals & Mining ETF | |||||
| May 21, 2009*–September 30, 2012 | |||||
| 0-24.99 | 139 | 16.41% | 106 | 12.51% | |
| 25-49.99 | 111 | 13.11% | 74 | 8.74% | |
| 50-74.99 | 79 | 9.33% | 61 | 7.20% | |
| 75-99.99 | 75 | 8.85% | 40 | 4.72% | |
| > 100 | 88 | 10.39% | 74 | 8.74% | |
| Total | 492 | 58.09% | 355 | 41.91% | |
| EGShares Energy GEMS ETF | |||||
| May 21, 2009*–September 30, 2012 | |||||
| 0-24.99 | 105 | 12.41% | 87 | 10.28% | |
| 25-49.99 | 120 | 14.19% | 90 | 10.64% | |
| 50-74.99 | 117 | 13.83% | 74 | 8.75% | |
| 75-99.99 | 59 | 6.97% | 34 | 4.02% | |
| > 100 | 79 | 9.34% | 81 | 9.57% | |
| Total | 480 | 56.74% | 366 | 43.26% | |
| EGShares Financials GEMS ETF | |||||
| September 16, 2009*–September 30, 2012 | |||||
| 0-24.99 | 105 | 13.73% | 101 | 13.20% | |
| 25-49.99 | 92 | 12.03% | 88 | 11.50% | |
| 50-74.99 | 55 | 7.19% | 84 | 10.98% | |
| 75-99.99 | 43 | 5.62% | 40 | 5.23% | |
| > 100 | 84 | 10.98% | 73 | 9.54% | |
| Total | 379 | 49.55% | 386 | 50.45% | |
| EGShares GEMS Composite ETF | |||||
| July 22, 2009*–September, 2012 | |||||
| 0-24.99 | 115 | 14.29% | 110 | 13.66% | |
| 25-49.99 | 118 | 14.66% | 97 | 12.05% | |
| 50-74.99 | 65 | 8.07% | 72 | 8.94% | |
| 75-99.99 | 59 | 7.33% | 29 | 3.60% | |
| > 100 | 77 | 9.57% | 63 | 7.83% | |
| Total | 434 | 53.92% | 371 | 46.08% | |
28 EGA Emerging Global Shares Trust
Frequency Distribution of Premium and Discount (Unaudited) (continued)
|
Market Price
Above or Equal to NAV |
Market Price
Below NAV |
||||
|
Basis Point
Differential |
Number
of Days |
% of
Total Days |
Number
of Days |
% of
Total Days |
|
| EGShares Health Care GEMS ETF | |||||
| June 23, 2011*–September 30, 2012 | |||||
| 0-24.99 | 39 | 12.15% | 44 | 13.71% | |
| 25-49.99 | 34 | 10.59% | 38 | 11.84% | |
| 50-74.99 | 15 | 4.67% | 48 | 14.95% | |
| 75-99.99 | 12 | 3.74% | 20 | 6.23% | |
| > 100 | 22 | 6.85% | 49 | 15.27% | |
| Total | 122 | 38.00% | 199 | 62.00% | |
| EGShares India Consumer ETF | |||||
| August 10, 2011*–September 30, 2012 | |||||
| 0-24.99 | 18 | 6.27% | 33 | 11.50% | |
| 25-49.99 | 31 | 10.80% | 30 | 10.45% | |
| 50-74.99 | 35 | 12.20% | 19 | 6.62% | |
| 75-99.99 | 18 | 6.27% | 4 | 1.39% | |
| > 100 | 79 | 27.53% | 20 | 6.97% | |
| Total | 181 | 63.07% | 106 | 36.93% | |
| EGShares India Infrastructure ETF | |||||
| August 11, 2010*–September 30, 2012 | |||||
| 0-24.99 | 47 | 8.72% | 52 | 9.65% | |
| 25-49.99 | 56 | 10.39% | 46 | 8.53% | |
| 50-74.99 | 53 | 9.83% | 45 | 8.35% | |
| 75-99.99 | 36 | 6.68% | 33 | 6.12% | |
| > 100 | 88 | 16.33% | 83 | 15.40% | |
| Total | 280 | 51.95% | 259 | 48.05% | |
| EGShares India Small Cap ETF | |||||
| July 7, 2010*–September 30, 2012 | |||||
| 0-24.99 | 64 | 11.35% | 42 | 7.45% | |
| 25-49.99 | 51 | 9.04% | 40 | 7.09% | |
| 50-74.99 | 51 | 9.04% | 35 | 6.21% | |
| 75-99.99 | 52 | 9.22% | 22 | 3.90% | |
| > 100 | 138 | 24.47% | 69 | 12.23% | |
| Total | 356 | 63.12% | 208 | 36.88% | |
| EGShares Industrials GEMS ETF | |||||
| June 23, 2011*–September 30, 2012 | |||||
| 0-24.99 | 37 | 11.53% | 42 | 13.08% | |
| 25-49.99 | 28 | 8.72% | 28 | 8.72% | |
| 50-74.99 | 25 | 7.79% | 25 | 7.79% | |
| 75-99.99 | 19 | 5.92% | 26 | 8.10% | |
| > 100 | 33 | 10.28% | 58 | 18.07% | |
| Total | 142 | 44.24% | 179 | 55.76% | |
| EGShares Low Volatility Emerging Markets Dividend ETF | |||||
| August 4, 2011*–September 30, 2012 | |||||
| 0-24.99 | 34 | 11.68% | 37 | 12.72% | |
| 25-49.99 | 54 | 18.56% | 11 | 3.78% | |
| 50-74.99 | 50 | 17.18% | 12 | 4.12% | |
| 75-99.99 | 35 | 12.03% | 11 | 3.78% | |
| > 100 | 37 | 12.71% | 10 | 3.44% | |
| Total | 210 | 72.16% | 81 | 27.84% | |
| EGShares Technology GEMS ETF | |||||
| June 23, 2011*–September 30, 2012 | |||||
| 0-24.99 | 61 | 19.00% | 55 | 17.13% | |
| 25-49.99 | 44 | 13.71% | 24 | 7.48% | |
| 50-74.99 | 30 | 9.35% | 18 | 5.61% | |
| 75-99.99 | 23 | 7.17% | 14 | 4.36% | |
| > 100 | 29 | 9.03% | 23 | 7.16% | |
| Total | 187 | 58.26% | 134 | 41.74% | |
EGA Emerging Global Shares Trust 29
Frequency Distribution of Premium and Discount (Unaudited) (concluded)
|
Market Price
Above or Equal to NAV |
Market Price
Below NAV |
||||
|
Basis Point
Differential |
Number
of Days |
% of
Total Days |
Number
of Days |
% of
Total Days |
|
| EGShares Telecom GEMS ETF | |||||
| June 23, 2011*–September 30, 2012 | |||||
| 0-24.99 | 47 | 14.64% | 45 | 14.02% | |
| 25-49.99 | 34 | 10.59% | 37 | 11.53% | |
| 50-74.99 | 23 | 7.17% | 22 | 6.85% | |
| 75-99.99 | 26 | 8.10% | 12 | 3.74% | |
| > 100 | 48 | 14.95% | 27 | 8.41% | |
| Total | 178 | 55.45% | 143 | 44.55% | |
| EGShares Utilities GEMS ETF | |||||
| June 23, 2011*–September 30, 2012 | |||||
| 0-24.99 | 52 | 16.20% | 62 | 19.31% | |
| 25-49.99 | 37 | 11.53% | 43 | 13.39% | |
| 50-74.99 | 14 | 4.36% | 31 | 9.66% | |
| 75-99.99 | 12 | 3.74% | 18 | 5.61% | |
| > 100 | 5 | 1.56% | 47 | 14.64% | |
| Total | 120 | 37.39% | 201 | 62.61% | |
* Commencement of Operations.
Each line in the table shows the number of trading days in which the Fund traded within the premium/discount range indicated. The number of trading days in each premium/discount range is also shown as a percentage of the total number of trading days in the period covered by each table. All data presented here represents past performance, which cannot be used to predict future results.
30 EGA Emerging Global Shares Trust
Schedule of Investments (Consolidated)†
EGShares Basic Materials GEMS ETF
September 30, 2012 (Unaudited)
| Investments | Shares | Value | |
| COMMON STOCKS—99.7% | |||
| Brazil—16.6% | |||
| Companhia Siderurgica Nacional SA ADR | 13,994 | $ | 78,786 |
| Gerdau SA Preference Shares ADR | 13,786 | 131,105 | |
| Vale SA Preference A Shares ADR | 15,211 | 264,063 | |
| Total Brazil | 473,954 | ||
| Chile – 3.0% | |||
| Empresas CMPC SA | 21,862 | 86,048 | |
| China—17.3% | |||
| Aluminum Corp. of China, Ltd. Class H ADR* | 4,281 | 43,366 | |
| China Coal Energy Co., Ltd. Class H | 79,696 | 72,776 | |
| China Shenhua Energy Co., Ltd. Class H | 47,957 | 186,181 | |
| Jiangxi Copper Co., Ltd. Class H | 29,304 | 74,231 | |
| Yanzhou Coal Mining Co., Ltd. Class H ADR | 3,961 | 59,217 | |
| Zijin Mining Group Co., Ltd. Class H | 137,949 | 55,690 | |
| Total China | 491,461 | ||
| India—9.7% | |||
| Coal India, Ltd. | 12,316 | 83,815 | |
| Hindalco Industries, Ltd. | 17,882 | 40,921 | |
| Jindal Steel & Power, Ltd. | 8,636 | 69,938 | |
| Sterlite Industries India, Ltd. ADR | 5,443 | 41,312 | |
| Tata Steel, Ltd. | 5,223 | 39,699 | |
| Total India | 275,685 | ||
| Indonesia—1.2% | |||
| Bumi Resources Tbk PT | 472,962 | 36,077 | |
| Malaysia—2.7% | |||
| Petronas Chemicals Group BHD | 36,400 | 76,218 | |
| Mexico—8.6% | |||
| Grupo Mexico SAB de CV Series B | 40,609 | 134,360 | |
| Industrias Penoles SAB de CV | 2,224 | 109,840 | |
| Total Mexico | 244,200 | ||
| Poland—4.1% | |||
| KGHM Polska Miedz SA | 2,459 | 117,057 | |
| Investments | Shares | Value | |
| Russia—15.3% | |||
| Evraz PLC | 9,482 | $ | 37,758 |
| MMC Norilsk Nickel OJSC ADR | 9,999 | 159,484 | |
| Novolipetsk Steel GDR | 1,584 | 31,363 | |
| Severstal GDR | 3,959 | 49,527 | |
| Uralkali OJSC GDR | 3,788 | 156,709 | |
| Total Russia | 434,841 | ||
| South Africa—21.2% | |||
| Anglo American Platinum, Ltd. | 1,189 | 61,675 | |
| AngloGold Ashanti, Ltd. ADR | 5,317 | 186,361 | |
| Gold Fields, Ltd. ADR | 10,282 | 132,124 | |
| Impala Platinum Holdings, Ltd. | 8,222 | 138,509 | |
| Kumba Iron Ore, Ltd. | 1,386 | 84,479 | |
| Total South Africa | 603,148 | ||
| TOTAL INVESTMENTS IN SECURITIES—99.7% | |||
| (Cost: $3,258,619) | 2,838,689 | ||
| Other Assets in Excess of Liabilities—0.3% | 7,333 | ||
| Net Assets—100.0% | $ | 2,846,022 | |
| † | The Consolidated Schedule of Investments includes the accounts of the wholly owned subsidiary. All inter-company accounts and transactions have been eliminated in consolidation. See Note 2 of the Notes to Financial Statements. |
| * | Non-income producing security |
| ADR | American Depositary Receipts |
| GDR | Global Depositary Receipts |
| % of | ||||||||
| Summary by Industry | Value | Net Assets | ||||||
| Chemicals | $ | 232,927 | 8.2 | % | ||||
| Metals & Mining | 2,081,648 | 73.1 | ||||||
| Oil, Gas & Consumable Fuels | 438,066 | 15.4 | ||||||
| Paper & Forest Products | 86,048 | 3.0 | ||||||
| Total Investments | 2,838,689 | 99.7 | ||||||
| Other Assets in Excess of Liabilities | 7,333 | 0.3 | ||||||
| Net Assets | $ | 2,846,022 | 100.0 | % | ||||
The accompanying notes are an integral part of these financial statements.
EGA Emerging Global Shares Trust 31
Schedule of Investments
EGShares Beyond BRICs ETF
September 30, 2012 (Unaudited)
| Investments | Shares | Value | |
| COMMON STOCKS—99.6% | |||
| Chile—4.9% | |||
| Banco Santander Chile ADR | 635 | $ | 46,507 |
| Enersis SA ADR | 3,804 | 62,348 | |
| Lan Airlines SA ADR | 5,092 | 128,726 | |
| Sociedad Quimica y Minera de Chile SA ADR | 1,881 | 115,945 | |
| Total Chile | 353,526 | ||
| Colombia—3.9% | |||
| Bancolombia SA ADR | 1,253 | 74,817 | |
| Ecopetrol SA ADR | 3,545 | 208,907 | |
| Total Colombia | 283,724 | ||
| Indonesia—11.9% | |||
| Astra International Tbk PT | 272,835 | 210,969 | |
| Bank Central Asia Tbk PT | 203,740 | 168,187 | |
| Bank Mandiri Persero Tbk PT | 148,950 | 127,627 | |
| Bank Rakyat Indonesia Persero Tbk PT | 168,093 | 130,856 | |
| Perusahaan Gas Negara PT | 162,047 | 69,848 | |
| Telekomunikasi Indonesia Tbk PT ADR | 3,883 | 151,165 | |
| Total Indonesia | 858,652 | ||
| Malaysia—15.1% | |||
| Axiata Group BHD | 54,400 | 115,688 | |
| CIMB Group Holdings BHD | 65,100 | 159,741 | |
| DiGi.Com BHD | 39,900 | 68,926 | |
| Genting BHD | 36,200 | 103,158 | |
| Malayan Banking BHD | 46,200 | 136,189 | |
| Maxis BHD | 27,300 | 61,808 | |
| Petronas Chemicals Group BHD | 28,000 | 58,629 | |
| Public Bank BHD | 42,000 | 197,598 | |
| Sime Darby BHD | 38,300 | 122,801 | |
| Tenaga Nasional BHD | 29,400 | 65,600 | |
| Total Malaysia | 1,090,138 | ||
| Mexico—18.2% | |||
| America Movil SAB de CV Series L ADR | 12,933 | 329,015 | |
| Fomento Economico Mexicano SAB de CV ADR | 3,724 | 342,533 | |
| Grupo Mexico SAB de CV Series B | 92,146 | 304,878 | |
| Grupo Modelo SAB de CV Series C | 36,767 | 331,403 | |
| Total Mexico | 1,307,829 | ||
| Peru—1.9% | |||
| Cia de Minas Buenaventura SA ADR | 3,454 | 134,568 | |
| Philippines—1.0% | |||
| SM Investments Corp. | 3,970 | 69,474 | |
| Poland—3.5% | |||
| Bank Pekao SA | 1,498 | 73,788 | |
| PGE SA | 10,441 | 60,295 | |
| Powszechna Kasa Oszczednosci Bank Polski SA | 10,469 | 116,339 | |
| Total Poland | 250,422 | ||
| South Africa—18.3% | |||
| FirstRand, Ltd. | 63,537 | 214,764 | |
| MTN Group, Ltd. | 18,126 | 351,947 | |
| Naspers, Ltd. N Shares | 4,490 | 280,229 | |
| Sasol, Ltd. | 6,686 | 301,671 | |
| Standard Bank Group, Ltd. | 13,260 | 169,752 | |
| Total South Africa | 1,318,363 | ||
| Investments | Shares | Value | |
| Thailand—14.4% | |||
| Advanced Info Service PCL | 23,800 | $ | 165,471 |
| Bangkok Bank PCL | 19,141 | 120,642 | |
| Kasikornbank PCL | 25,900 | 153,566 | |
| PTT Exploration & Production PCL | 16,100 | 84,998 | |
| PTT PCL | 19,600 | 209,500 | |
| Siam Cement PCL | 9,100 | 103,181 | |
| Siam Commercial Bank PCL | 36,400 | 199,266 | |
| Total Thailand | 1,036,624 | ||
| Turkey—6.5% | |||
| Akbank TAS | 25,080 | 99,169 | |
| KOC Holding AS | 8,630 | 34,508 | |
| Turk Telekomunikasyon AS | 6,980 | 27,833 | |
| Turkcell Iletisim Hizmetleri AS* | 11,524 | 70,276 | |
| Turkiye Garanti Bankasi AS | 31,472 | 131,455 | |
| Turkiye Halk Bankasi AS | 4,567 | 35,608 | |
| Turkiye Is Bankasi Class C | 21,225 | 66,668 | |
| Total Turkey | 465,517 | ||
| TOTAL INVESTMENTS IN SECURITIES—99.6% | |||
| (Cost: $7,039,850) | 7,168,837 | ||
| Other Assets in Excess of Liabilities—0.4% | 27,063 | ||
| Net Assets—100.0% | $ | 7,195,900 | |
| * | Non-income producing security |
ADR American Depositary Receipts
| % of | ||||||||
| Summary by Industry | Value | Net Assets | ||||||
| Airlines | $ | 128,726 | 1.8 | % | ||||
| Automobiles | 210,969 | 2.9 | ||||||
| Beverages | 673,936 | 9.4 | ||||||
| Chemicals | 174,574 | 2.4 | ||||||
| Commercial Banks | 2,207,775 | 30.7 | ||||||
| Construction Materials | 103,181 | 1.4 | ||||||
| Diversified Financial Services | 214,764 | 3.0 | ||||||
| Diversified Telecommunication Services | 178,998 | 2.5 | ||||||
| Electric Utilities | 188,243 | 2.6 | ||||||
| Gas Utilities | 69,848 | 1.0 | ||||||
| Hotels, Restaurants & Leisure | 103,158 | 1.4 | ||||||
| Industrial Conglomerates | 226,783 | 3.1 | ||||||
| Media | 280,229 | 3.9 | ||||||
| Metals & Mining | 439,446 | 6.1 | ||||||
| Oil, Gas & Consumable Fuels | 805,076 | 11.2 | ||||||
| Wireless Telecommunication Services | 1,163,131 | 16.2 | ||||||
| Total Investments | 7,168,837 | 99.6 | ||||||
| Other Assets in Excess of Liabilities | 27,063 | 0.4 | ||||||
| Net Assets | $ | 7,195,900 | 100.0 | % | ||||
The accompanying notes are an integral part of these financial statements.
32 EGA Emerging Global Shares Trust
Schedule of Investments
EGShares Brazil Infrastructure ETF
September 30, 2012 (Unaudited)
| Investments | Shares | Value | |
| COMMON STOCKS—99.0% | |||
| Aerospace & Defense—4.9% | |||
| Embraer SA | 519,461 | $ | 3,459,147 |
| Diversified Telecommunication Services—9.2% | |||
| Oi SA Preference Shares | 836,266 | 3,363,531 | |
| Telefonica Brasil SA | 142,468 | 3,100,336 | |
| Total Diversified Telecommunication Services | 6,463,867 | ||
| Electric Utilities—9.6% | |||
| Centrais Eletricas Brasileiras SA | 346,117 | 2,060,870 | |
| Companhia Energetica de Minas Gerais | 158,360 | 1,706,304 | |
| CPFL Energia SA | 267,877 | 2,944,429 | |
| Total Electric Utilities | 6,711,603 | ||
| Energy Equipment & Services—0.4% | |||
| OSX Brasil SA* | 48,128 | 294,632 | |
| Gas Utilities—3.0% | |||
| Companhia de Gas de Sao Paulo Class A | 93,367 | 2,106,372 | |
| Independent Power Producers & Energy Traders—9.0% | |||
| AES Tiete SA | 116,546 | 1,047,811 | |
| Companhia Energetica de Sao Paulo | |||
| Preference Shares Class B | 199,915 | 2,111,681 | |
| Tractebel Energia SA | 202,550 | 3,189,803 | |
| Total Independent Power Producers & Energy Traders | 6,349,295 | ||
| Machinery—6.9% | |||
| Iochpe-Maxion SA | 54,035 | 707,931 | |
| Marcopolo SA Preference Shares | 308,217 | 1,782,031 | |
| Weg SA | 202,530 | 2,374,896 | |
| Total Machinery | 4,864,858 | ||
| Metals & Mining—13.8% | |||
| Companhia Siderurgica Nacional SA | 660,257 | 3,732,821 | |
| Gerdau SA | 311,883 | 2,448,884 | |
| Vale SA | 198,144 | 3,539,402 | |
| Total Metals & Mining | 9,721,107 | ||
| Investments | Shares | Value | |
| Oil, Gas & Consumable Fuels—5.0% | |||
| Ultrapar Participacoes SA | 158,547 | $ | 3,544,801 |
| Real Estate Management & Development—11.4% | |||
| BR Malls Participacoes SA | 282,258 | 3,882,995 | |
| BR Properties SA | 165,041 | 2,143,548 | |
| Multiplan Empreendimentos Imobiliarios SA | 67,657 | 1,987,558 | |
| Total Real Estate Management & Development | 8,014,101 | ||
| Road & Rail—5.6% | |||
| All America Latina Logistica | 415,840 | 1,707,387 | |
| JSL SA | 59,640 | 316,308 | |
| Localiza Rent a Car SA | 108,496 | 1,878,145 | |
| Total Road & Rail | 3,901,840 | ||
| Transportation Infrastructure—9.1% | |||
| CCR SA | 460,071 | 4,090,931 | |
| Ecorodovias Infraestrutura e Logistica SA | 139,150 | 1,201,650 | |
| Obrascon Huarte Lain Brasil SA | 121,204 | 1,103,430 | |
| Total Transportation Infrastructure | 6,396,011 | ||
| Water Utilities—6.9% | |||
| Companhia de Saneamento Basico do Estado de Sao Paulo | 85,629 | 3,481,633 | |
| Companhia de Saneamento de Minas Gerais | 59,952 | 1,360,799 | |
| Total Water Utilities | 4,842,432 | ||
| Wireless Telecommunication Services—4.2% | |||
| Tim Participacoes SA | 758,748 | 2,917,111 | |
| TOTAL INVESTMENTS IN SECURITIES—99.0% | |||
| (Cost: $67,913,423) | 69,587,177 | ||
| Other Assets in Excess of Liabilities—1.0% | 721,605 | ||
| Net Assets—100.0% | $ 70,308,782 | ||
| * | Non-income producing security |
The accompanying notes are an integral part of these financial statements.
EGA Emerging Global Shares Trust 33
Schedule of Investments
EGShares China Infrastructure ETF
September 30, 2012 (Unaudited)
| Investments | Shares | Value | |
| COMMON STOCKS—99.9% | |||
| Construction & Engineering—14.6% | |||
| China Communications Construction Co., Ltd. Class H | 561,521 | $ | 454,098 |
| China Railway Construction Corp., Ltd. Class H | 600,009 | 537,073 | |
| China Railway Group, Ltd. Class H | 1,228,269 | 537,044 | |
| Total Construction & Engineering | 1,528,215 | ||
| Construction Materials—11.8% | |||
| Anhui Conch Cement Co., Ltd. Class H | 200,262 | 623,781 | |
| BBMG Corp. Class H | 356,145 | 272,853 | |
| China National Building Material Co., Ltd. Class H | 305,745 | 337,953 | |
| Total Construction Materials | 1,234,587 | ||
| Diversified Telecommunication Services—10.0% | |||
| China Telecom Corp., Ltd. Class H | 960,732 | 555,132 | |
| China Unicom Hong Kong, Ltd. | 303,540 | 497,989 | |
| Total Diversified Telecommunication Services | 1,053,121 | ||
| Electrical Equipment—8.1% | |||
| Dongfang Electric Corp., Ltd. Class H | 184,619 | 251,453 | |
| Shanghai Electric Group Co., Ltd. Class H | 1,180,909 | 420,379 | |
| Zhuzhou CSR Times Electric Co., Ltd. Class H | 70,962 | 182,685 | |
| Total Electrical Equipment | 854,517 | ||
| Energy Equipment & Services—5.5% | |||
| China Oilfield Services, Ltd. Class H | 317,206 | 577,687 | |
| Gas Utilities—2.0% | |||
| ENN Energy Holdings Ltd. | 48,861 | 205,760 | |
| Independent Power Producers & Energy Traders—12.5% | |||
| China Longyuan Power Group Corp. Class H | 447,477 | 294,345 | |
| Datang International Power Generation Co., Ltd. Class H | 1,377,341 | 463,659 | |
| Huaneng Power International, Inc. Class H | 720,156 | 548,018 | |
| Total Independent Power Producers & Energy Traders | 1,306,022 | ||
| Investments | Shares | Value | |
| Machinery—12.9% | |||
| Changsha Zoomlion Heavy Industry Science And Technology Development Co., Ltd. Class H | 427,046 | $ | 485,251 |
| CSR Corp., Ltd. Class H | 666,985 | 441,316 | |
| Weichai Power Co., Ltd. Class H | 139,439 | 427,134 | |
| Total Machinery | 1,353,701 | ||
| Metals & Mining—13.3% | |||
| Aluminum Corp. of China, Ltd. Class H* | 1,172,067 | 485,259 | |
| Angang Steel Co., Ltd. Class H | 461,819 | 238,258 | |
| Jiangxi Copper Co., Ltd. Class H | 212,702 | 538,802 | |
| Maanshan Iron & Steel Co., Ltd. Class H | 543,061 | 127,479 | |
| Total Metals & Mining | 1,389,798 | ||
| Real Estate Management & Development—9.2% | |||
| Agile Property Holdings, Ltd. | 88,202 | 99,427 | |
| Country Garden Holdings Co., Ltd.* | 306,056 | 119,213 | |
| Evergrande Real Estate Group, Ltd. | 349,125 | 138,241 | |
| Guangzhou R&F Properties Co., Ltd. Class H | 207,397 | 238,875 | |
| Longfor Properties Co., Ltd. | 88,393 | 136,809 | |
| Shimao Property Holdings, Ltd. | 88,682 | 152,584 | |
| Soho China, Ltd. | 125,839 | 77,906 | |
| Total Real Estate Management & Development | 963,055 | ||
| TOTAL INVESTMENTS IN SECURITIES—99.9% | |||
| (Cost: $13,396,369) | 10,466,463 | ||
| Other Assets in Excess of Liabilities—0.1% | 11,487 | ||
| Net Assets—100.0% | $ | 10,477,950 | |
| * | Non-income producing security |
The accompanying notes are an integral part of these financial statements.
34 EGA Emerging Global Shares Trust
Schedule of Investments (Consolidated)†
EGShares Consumer Goods GEMS ETF
September 30, 2012 (Unaudited)
| Investments | Shares | Value | |
| COMMON STOCKS—100.3% | |||
| Brazil—15.5% | |||
| BRF—Brasil Foods SA ADR | 7,158 | $ | 123,833 |
| Companhia de Bebidas das Americas | |||
| Preference Shares ADR | 5,791 | 221,622 | |
| Total Brazil | 345,455 | ||
| Cayman Islands—2.7% | |||
| China Mengniu Dairy Co. Ltd. | 20,243 | 60,573 | |
| China—7.2% | |||
| China Agri-Industries Holdings, Ltd. | 46,691 | 26,437 | |
| Dongfeng Motor Group Co., Ltd. Class H | 43,835 | 51,166 | |
| Great Wall Motor Co., Ltd. Class H | 19,327 | 50,977 | |
| Guangzhou Automobile Group Co., Ltd. Class H | 48,451 | 31,808 | |
| Total China | 160,388 | ||
| Colombia—2.4% | |||
| Grupo Nutresa SA | 4,692 | 54,765 | |
| India—15.1% | |||
| Bajaj Auto, Ltd. | 1,364 | 47,327 | |
| Hero MotoCorp, Ltd. | 1,530 | 54,543 | |
| Hindustan Unilever, Ltd. | 11,642 | 120,481 | |
| ITC, Ltd. | 22,149 | 114,388 | |
| Total India | 336,739 | ||
| Indonesia—12.9% | |||
| Astra International Tbk PT | 192,559 | 148,896 | |
| Gudang Garam Tbk PT | 8,147 | 39,543 | |
| Indofood Sukses Makmur Tbk PT | 81,167 | 47,920 | |
| Unilever Indonesia Tbk PT | 19,157 | 52,146 | |
| Total Indonesia | 288,505 | ||
| Malaysia—9.4% | |||
| British American Tobacco Malaysia BHD | 2,300 | 45,451 | |
| IOI Corp. BHD | 44,600 | 72,667 | |
| Kuala Lumpur Kepong BHD | 7,500 | 54,131 | |
| PPB Group BHD | 9,500 | 37,484 | |
| Total Malaysia | 209,733 | ||
| Investments | Shares | Value | |
| Mexico—24.1% | |||
| Arca Continental SAB de CV | 11,235 | $ | 79,649 |
| Coca-Cola Femsa SAB de CV ADR | 511 | 65,919 | |
| Fomento Economico Mexicano SAB de CV ADR | 1,794 | 165,012 | |
| Grupo Bimbo SAB de CV Series A | 33,854 | 84,600 | |
| Grupo Modelo SAB de CV Series C | 8,894 | 80,167 | |
| Kimberly-Clark de Mexico SAB de CV Class A | 25,997 | 62,156 | |
| Total Mexico | 537,503 | ||
| Philippines—2.2% | |||
| San Miguel Corp. | 18,225 | 48,189 | |
| South Africa—3.9% | |||
| Tiger Brands, Ltd. | 2,616 | 86,592 | |
| Thailand—2.6% | |||
| Charoen Pokphand Foods Public Co., Ltd. | 53,400 | 58,119 | |
| Turkey—2.3% | |||
| Anadolu Efes Biracilik ve Malt Sanayii AS | 3,457 | 51,405 | |
| TOTAL INVESTMENTS IN SECURITIES—100.3% | |||
| (Cost: $2,070,755) | 2,237,966 | ||
| Liabilities in Excess of Other Assets—(0.3)% | (7,106) | ||
| Net Assets—100.0% | $ | 2,230,860 | |
| † | The Consolidated Schedule of Investments includes the accounts of the wholly owned subsidiary. All inter-company accounts and transactions have been eliminated in consolidation. See Note 2 of the Notes to Financial Statements. |
| ADR | American Depositary Receipts |
| Summary by Industry | Value | Net Assets | ||||||
| Automobiles | $ | 384,717 | 17.3 | % | ||||
| Beverages | 711,963 | 31.9 | ||||||
| Food Products | 707,121 | 31.7 | ||||||
| Household Products | 234,783 | 10.5 | ||||||
| Tobacco | 199,382 | 8.9 | ||||||
| Total Investments | 2,237,966 | 100.3 | ||||||
| Liabilities in Excess of Other Assets | (7,106 | ) | (0.3 | ) | ||||
| Net Assets | $ | 2,230,860 | 100.0 | % | ||||
The accompanying notes are an integral part of these financial statements.
EGA Emerging Global Shares Trust 35
Schedule of Investments
EGShares Consumer Services GEMS ETF
September 30, 2012 (Unaudited)
| Investments | Shares | Value | |
| COMMON STOCKS—101.9% | |||
| Brazil—4.1% | |||
| Companhia Brasileira de Distribuicao Grupo Pao de Acucar Preference Shares ADR | 1,804 | $ | 81,379 |
| Chile—12.7% | |||
| Cencosud SA | 6,149 | 37,230 | |
| Lan Airlines SA ADR | 4,557 | 115,201 | |
| S.A.C.I. Falabella | 10,249 | 103,445 | |
| Total Chile | 255,876 | ||
| China—9.0% | |||
| Air China, Ltd. Class H | 39,799 | 25,050 | |
| China Resources Enterprise, Ltd. | 18,793 | 62,779 | |
| Ctrip.com International, Ltd. ADR* | 2,694 | 45,474 | |
| New Oriental Education & Technology Group, Ltd. ADR | 2,814 | 46,909 | |
| Total China | 180,212 | ||
| Colombia—2.6% | |||
| Almacenes Exito SA | 3,231 | 52,926 | |
| Malaysia—7.7% | |||
| AirAsia BHD | 28,500 | 28,160 | |
| Genting BHD | 27,200 | 77,511 | |
| Genting Malaysia BHD | 43,300 | 49,583 | |
| Total Malaysia | 155,254 | ||
| Mexico—12.8% | |||
| Grupo Elektra SA de CV | 246 | 10,035 | |
| Grupo Televisa SAB ADR | 3,558 | 83,649 | |
| TV Azteca SAB de CV Series CPO | 15,415 | 10,646 | |
| Wal-Mart de Mexico SAB de CV Series V | 54,070 | 152,446 | |
| Total Mexico | 256,776 | ||
| Philippines—3.3% | |||
| SM Investments Corp. | 3,840 | 67,199 | |
| Russia—8.1% | |||
| Magnit OJSC GDR | 3,593 | 122,126 | |
| X5 Retail Group NV GDR* | 1,975 | 41,495 | |
| Total Russia | 163,621 | ||
| Investments | Shares | Value | ||
| South Africa—35.4% | ||||
| Foschini Group Ltd. (The) | 4,036 | $ | 61,882 | |
| Massmart Holdings, Ltd. | 1,733 | 35,056 | ||
| Mr. Price Group Ltd. | 3,782 | 57,749 | ||
| Naspers, Ltd. N Shares | 3,398 | 212,076 | ||
| Pick n Pay Stores, Ltd. | 4,352 | 23,545 | ||
| Shoprite Holdings, Ltd. | 4,384 | 89,442 | ||
| Steinhoff International Holdings, Ltd. | 27,029 | 85,433 | ||
| Truworths International, Ltd. | 7,237 | 82,446 | ||
| Woolworths Holdings, Ltd. | 8,930 | 65,791 | ||
| Total South Africa | 713,420 | |||
| Thailand—3.3% | ||||
| CP ALL PCL | 57,500 | 66,317 | ||
| Turkey—2.9% | ||||
| BIM Birlesik Magazalar AS | 1,392 | 58,142 | ||
| TOTAL INVESTMENTS IN SECURITIES—101.9% | ||||
| (Cost: $2,003,822) | 2,051,122 | |||
| Liabilities in Excess of Other Assets—(1.9)% | (37,797 | ) | ||
| Net Assets—100.0% | $ | 2,013,325 | ||
| * | Non-income producing security | |
| ADR | American Depositary Receipts | |
| GDR | Global Depositary Receipts | |
| % of | ||||||||
| Summary by Industry | Value | Net Assets | ||||||
| Airlines | $ | 168,411 | 8.4 | % | ||||
| Diversified Consumer Services | 46,909 | 2.3 | ||||||
| Food & Staples Retailing | 822,883 | 40.9 | ||||||
| Hotels, Restaurants & Leisure | 172,568 | 8.6 | ||||||
| Household Durables | 85,433 | 4.2 | ||||||
| Industrial Conglomerates | 67,199 | 3.3 | ||||||
| Media | 306,371 | 15.2 | ||||||
| Multiline Retail | 169,236 | 8.4 | ||||||
| Specialty Retail | 212,112 | 10.6 | ||||||
| Total Investments | 2,051,122 | 101.9 | ||||||
| Liabilities in Excess of Other Assets | (37,797 | ) | (1.9 | ) | ||||
| Net Assets | $ | 2,013,325 | 100.0 | % | ||||
The accompanying notes are an integral part of these financial statements.
36 EGA Emerging Global Shares Trust
Schedule of Investments (Consolidated)†
EGShares Emerging Markets Consumer ETF
September 30, 2012 (Unaudited)
| Investments | Shares | Value | |
| COMMON STOCKS—99.9% | |||
| Brazil—17.0% | |||
| BRF—Brasil Foods SA ADR | 1,156,810 | $ | 20,012,813 |
| Companhia Brasileira de Distribuicao Grupo Pao de Acucar Preference Shares ADR | 271,513 | 12,247,951 | |
| Companhia de Bebidas das Americas | |||
| Preference Shares ADR | 1,158,586 | 44,339,086 | |
| Total Brazil | 76,599,850 | ||
| Chile—9.3% | |||
| Cencosud SA | 1,761,616 | 10,665,842 | |
| Lan Airlines SA ADR | 576,595 | 14,576,322 | |
| S.A.C.I. Falabella | 1,671,387 | 16,869,544 | |
| Total Chile | 42,111,708 | ||
| China—5.3% | |||
| China Resources Enterprise, Ltd. | 2,100,704 | 7,017,475 | |
| Ctrip.com International, Ltd. ADR* | 316,342 | 5,339,853 | |
| Dongfeng Motor Group Co., Ltd. Class H | 5,748,108 | 6,709,493 | |
| New Oriental Education & Technology Group, Ltd. ADR | 278,391 | 4,640,778 | |
| Total China | 23,707,599 | ||
| Colombia—1.5% | |||
| Grupo Nutresa SA | 579,266 | 6,761,159 | |
| India—11.2% | |||
| Bajaj Auto, Ltd. | 165,521 | 5,743,103 | |
| Hero Motocorp, Ltd. | 186,073 | 6,633,294 | |
| Hindustan Unilever, Ltd. | 1,834,452 | 18,984,465 | |
| ITC, Ltd. | 3,685,373 | 19,033,000 | |
| Total India | 50,393,862 | ||
| Indonesia—5.9% | |||
| Astra International TBK PT | 34,106,738 | 26,373,026 | |
| Malaysia—6.2% | |||
| Genting BHD | 4,124,120 | 11,752,359 | |
| Genting Malaysia BHD | 6,377,080 | 7,302,398 | |
| IOI Corp. BHD | 5,562,920 | 9,063,747 | |
| Total Malaysia | 28,118,504 | ||
| Mexico—18.5% | |||
| Fomento Economico Mexicano SAB de CV Series UB | 3,094,273 | 28,525,865 | |
| Grupo Bimbo SAB de CV Series A | 4,760,956 | 11,897,530 | |
| Grupo Televisa SAB Series CPO | 3,469,624 | 16,380,344 | |
| Wal-Mart de Mexico SAB de CV Series V | 9,473,398 | 26,709,497 | |
| Total Mexico | 83,513,236 | ||
| Investments | Shares | Value | |
| Russia—3.9% | |||
| Magnit OJSC GDR | 512,372 | $ | 17,415,524 |
| South Africa—19.0% | |||
| Naspers, Ltd. N Shares | 648,999 | 40,505,265 | |
| Shoprite Holdings, Ltd. | 668,933 | 13,647,574 | |
| Steinhoff International Holdings, Ltd.* | 3,107,702 | 9,822,736 | |
| Tiger Brands, Ltd. | 364,298 | 12,058,570 | |
| Truworths International, Ltd. | 842,169 | 9,594,285 | |
| Total South Africa | 85,628,430 | ||
| Thailand—2.1% | |||
| CP ALL PCL | 8,178,800 | 9,432,989 | |
| TOTAL INVESTMENTS IN SECURITIES—99.9% | |||
| (Cost: $418,982,105) | 450,055,887 | ||
| Other Assets in Excess of Liabilities—0.1% | 389,483 | ||
| Net Assets—100.0% | $ | 450,445,370 | |
| † | The Consolidated Schedule of Investments includes the accounts of the wholly owned subsidiary. All inter-company accounts and transactions have been eliminated in consolidation. See Note 2 of the Notes to Financial Statements. |
| * | Non-income producing security |
| ADR | American Depositary Receipts |
| GDR | Global Depositary Receipts |
| % of | ||||||||
| Summary by Industry | Value | Net Assets | ||||||
| Airlines | $ | 14,576,322 | 3.3 | % | ||||
| Automobiles | 45,458,916 | 10.1 | ||||||
| Beverages | 72,864,951 | 16.2 | ||||||
| Diversified Consumer Services | 4,640,778 | 1.0 | ||||||
| Food & Staples Retailing | 97,136,852 | 21.6 | ||||||
| Food Products | 59,793,819 | 13.3 | ||||||
| Hotels, Restaurants & Leisure | 24,394,610 | 5.4 | ||||||
| Household Durables | 9,822,736 | 2.2 | ||||||
| Household Products | 18,984,465 | 4.2 | ||||||
| Media | 56,885,609 | 12.6 | ||||||
| Multiline Retail | 16,869,544 | 3.7 | ||||||
| Specialty Retail | 9,594,285 | 2.1 | ||||||
| Tobacco | 19,033,000 | 4.2 | ||||||
| Total Investments | 450,055,887 | 99.9 | ||||||
| Other Assets in Excess of Liabilities | 389,483 | 0.1 | ||||||
| Net Assets | $ | 450,445,370 | 100.0 | % | ||||
The accompanying notes are an integral part of these financial statements.
EGA Emerging Global Shares Trust 37
Schedule of Investments (Consolidated)†
EGShares Emerging Markets Domestic Demand ETF
September 30, 2012 (Unaudited)
| Investments | Shares | Value | |
| COMMON STOCKS—99.7% | |||
| Brazil—12.3% | |||
| BRF—Brasil Foods SA ADR | 7,800 | $ | 134,940 |
| Centrais Eletricas Brasileiras SA ADR | 3,340 | 19,806 | |
| Companhia de Bebidas das Americas | |||
| Preference Shares ADR | 6,315 | 241,675 | |
| Companhia de Saneamento Basico do | |||
| Estado de Sao Paulo ADR | 665 | 54,005 | |
| Companhia Energetica de Minas Gerais ADR | 1,495 | 18,119 | |
| Companhia Paranaense de Energia-Copel | |||
| Preference Shares ADR | 430 | 7,061 | |
| CPFL Energia SA ADR | 850 | 18,624 | |
| Telefonica Brasil SA Preference Shares ADR | 6,375 | 138,592 | |
| Total Brazil | 632,822 | ||
| Chile—1.0% | |||
| Enersis SA ADR | 2,945 | 48,269 | |
| China—14.8% | |||
| BYD Co., Ltd. Class H* | 32,205 | 56,159 | |
| China Telecom Corp., Ltd. Class H | 457,455 | 264,328 | |
| Dongfeng Motor Group Co., Ltd. Class H | 99,535 | 116,182 | |
| Great Wall Motor Co., Ltd. Class H | 39,160 | 103,289 | |
| Huaneng Power International, Inc. Class H | 186,142 | 141,649 | |
| Sinopharm Group Co. Class H | 24,605 | 78,862 | |
| Total China | 760,469 | ||
| India—15.2% | |||
| Bajaj Auto, Ltd. | 1,415 | 49,096 | |
| Bharti Airtel, Ltd. | 12,435 | 62,582 | |
| Cipla, Ltd. | 4,870 | 35,095 | |
| Dr Reddy’s Laboratories Ltd. | 1,320 | 41,184 | |
| GAIL India, Ltd. | 3,985 | 28,918 | |
| Hero Motocorp, Ltd. | 1,090 | 38,857 | |
| ITC, Ltd. | 52,461 | 270,933 | |
| Mahindra & Mahindra, Ltd. | 4,865 | 79,757 | |
| Sun Pharmaceutical Industries, Ltd. | 6,240 | 82,287 | |
| Tata Motors, Ltd. ADR | 3,630 | 93,218 | |
| Total India | 781,927 | ||
| Indonesia—6.7% | |||
| Astra International Tbk PT | 221,385 | 171,186 | |
| Perusahaan Gas Negara PT | 126,250 | 54,418 | |
| Telekomunikasi Indonesia Tbk PT ADR | 3,005 | 116,985 | |
| Total Indonesia | 342,589 | ||
| Malaysia—4.3% | |||
| Axiata Group BHD | 42,000 | 89,318 | |
| Genting BHD | 28,000 | 79,790 | |
| Tenaga Nasional BHD | 22,500 | 50,204 | |
| Total Malaysia | 219,312 | ||
| Mexico—24.3% | |||
| America Movil SAB de CV Series L ADR | 9,255 | 235,447 | |
| Coca-Cola Femsa SAB de CV ADR | 1,285 | 165,765 | |
| Fomento Economico Mexicano SAB de CV ADR | 2,752 | 253,129 | |
| Grupo Elektra SA de CV | 770 | 31,412 | |
| Grupo Modelo SAB de CV Series C | 27,075 | 244,043 | |
| Grupo Televisa SAB ADR | 6,430 | 151,169 | |
| Wal-Mart de Mexico SAB de CV Series V | 59,510 | 167,784 | |
| Total Mexico | 1,248,749 | ||
| Investments | Shares | Value | |
| Philippines—1.5% | |||
| Philippine Long Distance Telephone Co. ADR | 1,180 | $ | 77,892 |
| Poland—0.9% | |||
| PGE SA | 8,125 | 46,921 | |
| Russia—3.1% | |||
| Federal Hydrogenerating Co. JSC ADR | 13,175 | 35,045 | |
| Mobile TeleSystems ADR | 7,160 | 125,443 | |
| Total Russia | 160,488 | ||
| South Africa—13.1% | |||
| Aspen Pharmacare Holdings, Ltd. | 2,335 | 40,468 | |
| Imperial Holdings, Ltd. | 1,590 | 36,133 | |
| MTN Group, Ltd. | 12,965 | 251,737 | |
| Naspers, Ltd. N Shares | 3,475 | 216,882 | |
| Steinhoff International Holdings, Ltd. | 11,610 | 36,696 | |
| Truworths International, Ltd. | 3,890 | 44,316 | |
| Woolworths Holdings, Ltd. | 6,135 | 45,199 | |
| Total South Africa | 671,431 | ||
| Thailand—2.5% | |||
| Advanced Info Service PCL | 18,500 | 128,622 | |
| TOTAL INVESTMENTS IN SECURITIES—99.7% | |||
| (Cost: $4,993,926) | 5,119,491 | ||
| Other Assets in Excess of Liabilities—0.3% | 15,211 | ||
| Net Assets—100.0% | $ | 5,134,702 | |
| † | The Consolidated Schedule of Investments includes the accounts of the wholly owned subsidiary. All inter-company accounts and transactions have been eliminated in consolidation. See Note 2 of the Notes to Financial Statements. |
| * | Non-income producing security |
| ADR | American Depositary Receipts |
| % of | ||||||||
| Summary by Industry | Value | Net Assets | ||||||
| Automobiles | $ | 707,744 | 13.8 | % | ||||
| Beverages | 904,612 | 17.6 | ||||||
| Distributors | 36,133 | 0.7 | ||||||
| Diversified Telecommunication Services | 519,905 | 10.1 | ||||||
| Electric Utilities | 244,049 | 4.7 | ||||||
| Food & Staples Retailing | 167,784 | 3.3 | ||||||
| Food Products | 134,940 | 2.6 | ||||||
| Gas Utilities | 83,336 | 1.6 | ||||||
| Health Care Providers & Services | 78,862 | 1.5 | ||||||
| Hotels, Restaurants & Leisure | 79,790 | 1.6 | ||||||
| Household Durables | 36,696 | 0.7 | ||||||
| Independent Power Producers & Energy Traders | 141,649 | 2.8 | ||||||
| Media | 368,051 | 7.2 | ||||||
| Multiline Retail | 45,199 | 0.9 | ||||||
| Pharmaceuticals | 199,034 | 3.9 | ||||||
| Specialty Retail | 75,728 | 1.5 | ||||||
| Tobacco | 270,933 | 5.3 | ||||||
| Water Utilities | 54,005 | 1.0 | ||||||
| Wireless Telecommunication Services | 971,041 | 18.9 | ||||||
| Total Investments | 5,119,491 | 99.7 | ||||||
| Other Assets in Excess of Liabilities | 15,211 | 0.3 | ||||||
| Net Assets | $ | 5,134,702 | 100.0 | % | ||||
The accompanying notes are an integral part of these financial statements.
38 EGA Emerging Global Shares Trust
Schedule of Investments (Consolidated)†
EGShares Emerging Markets Metals & Mining ETF
September 30, 2012 (Unaudited)
| Investments | Shares | Value |
| COMMON STOCKS—99.5% | ||
| Brazil—16.8% | ||
| Companhia Siderurgica Nacional SA ADR | 65,217 | $ 367,172 |
| Gerdau SA Preference Shares ADR | 62,399 | 593,414 |
| Vale SA ADR | 65,337 | 1,169,532 |
| Total Brazil | 2,130,118 | |
| Chile—2.4% | ||
| Capital SA | 8,700 | 303,047 |
| China—18.3% | ||
| Aluminum Corp. of China, Ltd. Class H | 481,827 | 199,486 |
| China Coal Energy Co., Ltd. Class H | 391,467 | 357,474 |
| China Shenhua Energy Co., Ltd. Class H | 212,019 | 823,109 |
| Jiangxi Copper Co., Ltd. Class H | 138,641 | 351,196 |
| Yanzhou Coal Mining Co., Ltd. Class H | 208,996 | 318,619 |
| Zijin Mining Group Co., Ltd. Class H | 668,251 | 269,774 |
| Total China | 2,319,658 | |
| India—12.0% | ||
| Coal India, Ltd. | 56,731 | 386,077 |
| Hindalco Industries, Ltd. | 100,390 | 229,729 |
| Jindal Steel & Power, Ltd. | 42,483 | 344,044 |
| Steel Authority of India, Ltd. | 84,284 | 136,545 |
| Sterlite Industries India, Ltd. ADR | 26,058 | 197,780 |
| Tata Steel, Ltd. | 29,840 | 226,805 |
| Total India | 1,520,980 | |
| Indonesia—1.3% | ||
| Bumi Resources Tbk PT | 2,096,090 | 159,890 |
| Mexico—8.7% | ||
| Grupo Mexico SAB de CV Series B | 175,661 | 581,199 |
| Industrias Penoles SAB de CV | 10,511 | 519,122 |
| Total Mexico | 1,100,321 | |
| Poland—4.4% | ||
| KGHM Polska Miedz SA | 11,606 | 552,486 |
| Investments | Shares | Value | |
| Russia—10.8% | |||
| Evraz PLC | 46,884 | $ | 186,697 |
| MMC Norilsk Nickel OJSC ADR | 47,306 | 754,531 | |
| Novolipetsk Steel GDR | 8,999 | 178,180 | |
| Severstal GDR | 19,602 | 245,221 | |
| Total Russia | 1,364,629 | ||
| South Africa—23.0% | |||
| Anglo American Platinum, Ltd. | 5,809 | 301,322 | |
| AngloGold Ashanti, Ltd. | 24,391 | 864,415 | |
| Gold Fields, Ltd. | 52,750 | 682,458 | |
| Impala Platinum Holdings, Ltd. | 39,113 | 658,903 | |
| Kumba Iron Ore, Ltd. | 6,638 | 404,596 | |
| Total South Africa | 2,911,694 | ||
| Turkey—1.8% | |||
| Eregli Demir ve Celik Fabrikalari TAS | 191,635 | 235,862 | |
| TOTAL INVESTMENTS IN SECURITIES—99.5% | |||
| (Cost: $17,360,386) | 12,598,685 | ||
| Other Assets in Excess of Liabilities—0.5% | 64,417 | ||
| Net Assets—100.0% | $ | 12,663,102 | |
| † | The Consolidated Schedule of Investments includes the accounts of the wholly owned subsidiary. All inter-company accounts and transactions have been eliminated in consolidation. See Note 2 of the Notes to Financial Statements. |
| ADR | American Depositary Receipts |
| GDR | Global Depositary Receipts |
| % of | ||||||||
| Summary by Industry | Value | Net Assets | ||||||
| Metals & Mining | $ | 10,553,516 | 83.3 | % | ||||
| Oil, Gas & Consumable Fuels | 2,045,169 | 16.2 | ||||||
| Total Investments | 12,598,685 | 99.5 | ||||||
| Other Assets in Excess of Liabilities | 64,417 | 0.5 | ||||||
| Net Assets | $ | 12,663,102 | 100.0 | % | ||||
The accompanying notes are an integral part of these financial statements.
EGA Emerging Global Shares Trust 39
Schedule of Investments (Consolidated)†
EGShares Energy GEMS ETF
September 30, 2012 (Unaudited)
| Investments | Shares | Value | |
| COMMON STOCKS—99.7% | |||
| Brazil—7.4% | |||
| Petroleo Brasileiro SA ADR | 38,297 | $ | 878,533 |
| Chile—2.9% | |||
| Empresas Copec SA | 23,748 | 349,887 | |
| China—21.8% | |||
| China Oilfield Services, Ltd. Class H | 99,914 | 181,961 | |
| China Petroleum & Chemical Corp. Class H | 575,756 | 537,642 | |
| CNOOC, Ltd. | 410,508 | 841,851 | |
| Kunlun Energy Co., Ltd. | 167,958 | 294,182 | |
| PetroChina Co., Ltd. Class H | 576,324 | 755,225 | |
| Total China | 2,610,861 | ||
| Colombia—4.3% | |||
| Ecopetrol SA ADR | 8,655 | 510,039 | |
| Hungary—1.8% | |||
| MOL Hungarian Oil and Gas PLC | 2,549 | 211,318 | |
| India—15.3% | |||
| Bharat Petroleum Corp., Ltd. | 16,160 | 106,835 | |
| Cairn India, Ltd.* | 30,296 | 190,151 | |
| GAIL India, Ltd. | 23,594 | 171,212 | |
| Indian Oil Corp., Ltd. | 36,367 | 172,717 | |
| Oil & Natural Gas Corp., Ltd. | 85,807 | 456,894 | |
| Reliance Industries, Ltd. GDR 144A | 23,346 | 734,932 | |
| Total India | 1,832,741 | ||
| Malaysia—1.2% | |||
| Petronas Dagangan BHD | 20,000 | 147,227 | |
| Poland—3.4% | |||
| Polski Koncern Naftowy Orlen SA* | 18,632 | 264,630 | |
| Polskie Gornictwo Naftowe i Gazownictwo SA* | 115,133 | 146,273 | |
| Total Poland | 410,903 | ||
| Russia—30.0% | |||
| Gazprom Neft JSC ADR | 943 | 23,170 | |
| Gazprom OAO ADR | 112,038 | 1,123,741 | |
| LUKOIL OAO ADR | 13,050 | 803,880 | |
| NovaTek OAO GDR | 4,447 | 526,080 | |
| Rosneft Oil Co. OJSC GDR | 49,772 | 334,468 | |
| Surgutneftegas ADR | 40,704 | 367,150 | |
| Tatneft ADR | 9,780 | 405,577 | |
| Total Russia | 3,584,066 | ||
| Investments | Shares | Value | |
| South Africa—4.5% | |||
| Sasol, Ltd. | 11,805 | $ | 532,639 |
| Thailand—5.5% | |||
| PTT Exploration & Production PCL | 38,865 | 205,184 | |
| PTT PCL | 30,589 | 326,958 | |
| Thai Oil PCL | 57,986 | 122,924 | |
| Total Thailand | 655,066 | ||
| Turkey—1.6% | |||
| Tupras-Turkiye Petrol Rafinerileri AS | 8,388 | 191,528 | |
| TOTAL INVESTMENTS IN SECURITIES—99.7% | |||
| (Cost: $13,405,515) | 11,914,808 | ||
| Other Assets in Excess of Liabilities—0.3% | 39,465 | ||
| Net Assets—100.0% | $ | 11,954,273 | |
| † | The Consolidated Schedule of Investments includes the accounts of the wholly owned subsidiary. All inter-company accounts and transactions have been eliminated in consolidation. See Note 2 of the Notes to Financial Statements. |
| * | Non-income producing security |
| ADR | American Depositary Receipts |
| GDR | Global Depositary Receipts |
| 144A | Series 144A securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may not be resold subject to that rule except to qualified institutional buyers. Unless otherwise noted, Series 144A securities are deemed to be liquid. |
| % of | ||||||||
| Summary by Industry | Value | Net Assets | ||||||
| Energy Equipment & Services | $ | 181,961 | 1.5 | % | ||||
| Gas Utilities | 171,212 | 1.5 | ||||||
| Industrial Conglomerates | 349,887 | 2.9 | ||||||
| Oil, Gas & Consumable Fuels | 11,211,748 | 93.8 | ||||||
| Total Investments | 11,914,808 | 99.7 | ||||||
| Other Assets in Excess of Liabilities | 39,465 | 0.3 | ||||||
| Net Assets | $ | 11,954,273 | 100.0 | % | ||||
The accompanying notes are an integral part of these financial statements.
40 EGA Emerging Global Shares Trust
Schedule of Investments (Consolidated)†
EGShares Financials GEMS ETF
September 30, 2012 (Unaudited)
| Investments | Shares | Value | |
| COMMON STOCKS—100.1% | |||
| Brazil—14.3% | |||
| Banco Bradesco SA Preference Shares ADR | 15,362 | $ | 246,867 |
| Banco Santander Brasil SA ADS ADR | 6,454 | 47,566 | |
| Itau Unibanco Holding SA Preference Shares ADR | 17,488 | 267,217 | |
| Total Brazil | 561,650 | ||
| China—41.4% | |||
| Agricultural Bank of China, Ltd. Class H | 237,604 | 92,550 | |
| Bank of China, Ltd. Class H | 564,130 | 214,643 | |
| Bank of Communications Co., Ltd. Class H | 75,565 | 51,265 | |
| China Citic Bank Corp., Ltd. Class H | 89,953 | 42,695 | |
| China Construction Bank Corp. Class H | 584,279 | 405,433 | |
| China Life Insurance Co., Ltd. Class H | 58,282 | 168,383 | |
| China Merchants Bank Co., Ltd. Class H | 37,393 | 62,987 | |
| China Overseas Land & Investment, Ltd. | 37,062 | 94,265 | |
| Industrial and Commercial Bank of China, Ltd. Class H | 609,342 | 359,951 | |
| Ping An Insurance Group Co. of China, Ltd. Class H | 17,257 | 130,431 | |
| Total China | 1,622,603 | ||
| India—12.7% | |||
| HDFC Bank, Ltd. ADR | 3,480 | 130,778 | |
| Housing Development Finance Corp., Ltd. | 13,035 | 191,379 | |
| ICICI Bank, Ltd. ADR | 2,748 | 110,305 | |
| State Bank of India GDR | 747 | 64,354 | |
| Total India | 496,816 | ||
| Indonesia—2.8% | |||
| Bank Central Asia Tbk PT | 133,095 | 109,870 | |
| Malaysia—3.6% | |||
| CIMB Group Holdings BHD | 26,200 | 64,289 | |
| Malayan Banking BHD | 25,600 | 75,464 | |
| Total Malaysia | 139,753 | ||
| Mexico—2.6% | |||
| Grupo Financiero Banorte SAB de CV Class O | 17,834 | 100,910 | |
| Poland—2.1% | |||
| Powszechna Kasa Oszczednosci Bank Polski SA | 7,420 | 82,456 | |
| Investments | Shares | Value | ||
| Russia—6.7% | ||||
| Sberbank of Russia ADR | 18,299 | $ | 214,647 | |
| VTB Bank OJSC GDR | 14,634 | 48,731 | ||
| Total Russia | 263,378 | |||
| South Africa—9.4% | ||||
| ABSA Group, Ltd. | 3,166 | 53,143 | ||
| FirstRand, Ltd. | 26,840 | 90,723 | ||
| Sanlam, Ltd. | 18,572 | 84,564 | ||
| Standard Bank Group, Ltd. | 10,887 | 139,374 | ||
| Total South Africa | 367,804 | |||
| Turkey—4.5% | ||||
| Akbank TAS | 21,174 | 83,726 | ||
| Turkiye Garanti Bankasi AS | 22,077 | 92,213 | ||
| Total Turkey | 175,939 | |||
| TOTAL INVESTMENTS IN SECURITIES—100.1% | ||||
| (Cost: $4,388,284) | 3,921,179 | |||
| Liabilities in Excess of Other Assets—(0.1)% | (2,234 | ) | ||
| Net Assets—100.0% | $ | 3,918,945 | ||
| † | The Consolidated Schedule of Investments includes the accounts of the wholly owned subsidiary. All inter-company accounts and transactions have been eliminated in consolidation. See Note 2 of the Notes to Financial Statements. |
| ADR | American Depositary Receipts |
| ADS | American Depository Shares |
| GDR | Global Depositary Receipts |
| % of | ||||||||
| Summary by Industry | Value | Net Assets | ||||||
| Commercial Banks | $ | 3,161,434 | 80.7 | % | ||||
| Diversified Financial Services | 90,723 | 2.3 | ||||||
| Insurance | 383,378 | 9.8 | ||||||
| Real Estate Management & Development | 94,265 | 2.4 | ||||||
| Thrifts & Mortgage Finance | 191,379 | 4.9 | ||||||
| Total Investments | 3,921,179 | 100.1 | ||||||
| Liabilities in Excess of Other Assets | (2,234 | ) | (0.1 | ) | ||||
| Net Assets | $ | 3,918,945 | 100.0 | % | ||||
The accompanying notes are an integral part of these financial statements.
EGA Emerging Global Shares Trust 41
Schedule of Investments (Consolidated)†
EGShares GEMS Composite ETF
September 30, 2012 (Unaudited)
| Investments | Shares | Value | |
| COMMON STOCKS—99.6% | |||
| Brazil—16.4% | |||
| Banco Bradesco SA Preference Shares ADR | 19,307 | $ | 310,263 |
| BRF—Brasil Foods SA ADR | 7,278 | 125,909 | |
| Companhia Brasileira de Distribuicao Grupo | |||
| Pao de Acucar Preference Shares ADR | 1,450 | 65,409 | |
| Companhia de Bebidas das Americas | |||
| Preference Shares ADR | 7,756 | 296,822 | |
| Companhia de Saneamento Basico do | |||
| Estado de Sao Paulo ADR | 534 | 43,366 | |
| Companhia Energetica de Minas Gerais | |||
| Preference Shares ADR | 5,696 | 69,035 | |
| Companhia Siderurgica Nacional SA ADR | 8,431 | 47,466 | |
| Embraer SA ADR | 1,564 | 41,634 | |
| Gerdau SA Preference Shares ADR | 6,968 | 66,266 | |
| Itau Unibanco Holding SA Preference Shares ADR | 22,993 | 351,333 | |
| Petroleo Brasileiro SA ADR | 16,756 | 384,383 | |
| Telefonica Brasil SA Preference Shares ADR | 2,800 | 60,872 | |
| Ultrapar Participacoes SA ADR | 4,813 | 107,378 | |
| Vale SA ADR | 13,091 | 234,329 | |
| Total Brazil | 2,204,465 | ||
| Chile—2.2% | |||
| Cencosud SA | 9,742 | 58,984 | |
| Empresa Nacional de Electricidad SA ADR | 1,320 | 63,307 | |
| Enersis SA ADR | 2,976 | 48,777 | |
| S.A.C.I. Falabella | 12,112 | 122,248 | |
| Total Chile | 293,316 | ||
| China—27.8% | |||
| Baidu, Inc. ADR* | 2,789 | 325,811 | |
| Bank of China, Ltd. Class H | 662,623 | 252,119 | |
| China Communications Construction Co., Ltd. Class H | 48,000 | 38,817 | |
| China Construction Bank Corp. Class H | 834,198 | 578,852 | |
| China Life Insurance Co., Ltd. Class H | 75,500 | 218,128 | |
| China Mobile, Ltd. | 52,500 | 581,998 | |
| China Petroleum & Chemical Corp. Class H | 162,280 | 151,537 | |
| China Shenhua Energy Co., Ltd. Class H | 32,270 | 125,280 | |
| China Telecom Corp., Ltd. Class H | 154,000 | 88,984 | |
| China Unicom Hong Kong, Ltd. | 34,500 | 56,601 | |
| CNOOC, Ltd. | 164,300 | 336,939 | |
| Dongfeng Motor Group Co., Ltd. Class H | 26,000 | 30,349 | |
| Industrial and Commercial Bank of China, Ltd. Class H | 831,793 | 491,357 | |
| Lenovo Group, Ltd. | 49,700 | 41,154 | |
| Mindray Medical International, Ltd. ADR | 1,101 | 37,005 | |
| NetEase.com, Inc. ADR* | 641 | 35,986 | |
| PetroChina Co., Ltd. Class H | 212,371 | 278,295 | |
| Shandong Weigao Group Medical Polymer Co., Ltd. Class H | 19,600 | 25,330 | |
| SINA Corp.* | 348 | 22,509 | |
| Sinopharm Group Co. Class H | 2,400 | 7,692 | |
| Sohu.com, Inc.* | 418 | 17,593 | |
| ZTE Corp. Class H | 2,400 | 3,851 | |
| Total China | 3,746,187 | ||
| Czech Republic—0.5% | |||
| CEZ AS | 1,707 | 63,610 | |
| Egypt—0.3% | |||
| Orascom Construction Industries | 967 | 45,661 | |
| Investments | Shares | Value | |
| Hungary—0.2% | |||
| Richter Gedeon Nyrt. | 149 | $ | 26,090 |
| India—10.9% | |||
| Bharti Airtel, Ltd. | 8,386 | 42,204 | |
| Cipla, Ltd. | 2,191 | 15,789 | |
| Dr. Reddy’s Laboratories, Ltd. ADR | 1,425 | 43,975 | |
| HDFC Bank, Ltd. ADR | 4,462 | 167,682 | |
| Hindustan Unilever, Ltd. | 10,530 | 108,973 | |
| Housing Development Finance Corp., Ltd. | 15,414 | 226,308 | |
| Infosys, Ltd. ADR | 4,986 | 242,020 | |
| ITC, Ltd. | 18,658 | 96,359 | |
| Mahindra & Mahindra, Ltd. | 1,843 | 30,214 | |
| NTPC, Ltd. | 5,480 | 17,465 | |
| Reliance Industries, Ltd. GDR 144A | 8,655 | 272,459 | |
| Sun Pharmaceutical Industries, Ltd. | 4,003 | 52,788 | |
| Tata Consultancy Services, Ltd. | 3,356 | 82,454 | |
| Tata Motors, Ltd. ADR | 1,304 | 33,487 | |
| Wipro, Ltd. ADR | 3,283 | 29,383 | |
| Total India | 1,461,560 | ||
| Indonesia—2.5% | |||
| Astra International Tbk PT | 195,271 | 150,993 | |
| Perusahaan Gas Negara PT | 139,500 | 60,129 | |
| Telekomunikasi Indonesia Tbk PT | 91,500 | 90,353 | |
| United Tractors Tbk PT | 17,378 | 37,589 | |
| Total Indonesia | 339,064 | ||
| Malaysia—2.0% | |||
| Genting BHD | 26,400 | 75,231 | |
| IOI Corp. BHD | 28,493 | 46,424 | |
| Sime Darby BHD | 26,500 | 84,966 | |
| Tenaga Nasional BHD | 25,300 | 56,452 | |
| Total Malaysia | 263,073 | ||
| Mexico—10.4% | |||
| America Movil SAB de CV Series L | 525,390 | 670,158 | |
| Cemex SAB de CV Series CPO* | 117,479 | 97,859 | |
| Fomento Economico Mexicano SAB de CV Series UB | 17,800 | 164,097 | |
| Grupo Bimbo SAB de CV Series A | 28,600 | 71,471 | |
| Grupo Mexico SAB de CV Series B | 36,067 | 119,333 | |
| Grupo Televisa SAB Series CPO | 22,500 | 106,224 | |
| Wal-Mart de Mexico SAB de CV Series V | 59,078 | 166,566 | |
| Total Mexico | 1,395,708 | ||
| Poland—0.1% | |||
| Asseco Poland SA | 782 | 10,907 | |
| Russia—13.0% | |||
| Federal Hydrogenerating Co. JSC ADR | 6,554 | 17,434 | |
| Gazprom OAO ADR | 62,427 | 626,143 | |
| LUKOIL OAO ADR | 5,288 | 325,741 | |
| Magnit OJSC GDR | 2,549 | 86,640 | |
| MMC Norilsk Nickel OJSC ADR | 6,628 | 105,716 | |
| Mobile TeleSystems ADR | 4,929 | 86,356 | |
| Rosneft Oil Co. OJSC GDR | 9,081 | 61,024 | |
| Sberbank of Russia ADR | 21,865 | 256,476 | |
| Surgutneftegas ADR | 9,470 | 85,419 | |
| Uralkali OJSC GDR | 2,500 | 103,425 | |
| Total Russia | 1,754,374 | ||
The accompanying notes are an integral part of these financial statements.
42 EGA Emerging Global Shares Trust
Schedule of Investments (Consolidated)† (concluded)
EGShares GEMS Composite ETF
September 30, 2012 (Unaudited)
| Investments | Shares | Value | |
| South Africa—12.4% | |||
| AngloGold Ashanti, Ltd. | 3,932 | $ | 139,350 |
| Aspen Pharmacare Holdings, Lt.* | 3,566 | 61,802 | |
| Bidvest Group, Ltd. | 2,635 | 65,786 | |
| Gold Fields, Ltd. | 7,789 | 100,771 | |
| Impala Platinum Holdings, Ltd. | 5,838 | 98,348 | |
| Imperial Holdings, Ltd. | 2,145 | 48,746 | |
| Mediclinic International, Ltd. | 4,000 | 19,876 | |
| MTN Group, Ltd. | 15,956 | 309,813 | |
| Naspers, Ltd. N Shares | 4,309 | 268,933 | |
| Netcare, Ltd. | 14,050 | 30,480 | |
| Sasol, Ltd. | 5,061 | 228,351 | |
| Shoprite Holdings, Ltd. | 3,494 | 71,285 | |
| Standard Bank Group, Ltd. | 13,548 | 173,440 | |
| Tiger Brands, Ltd. | 1,617 | 53,524 | |
| Total South Africa | 1,670,505 | ||
| Thailand—0.9% | |||
| Advanced Info Service PCL | 11,600 | 80,650 | |
| CP ALL PCL | 33,000 | 38,060 | |
| Total Thailand | 118,710 | ||
| TOTAL COMMON STOCKS | |||
| (Cost: $14,633,129) | 13,393,230 | ||
| RIGHTS—0.0%** | |||
| South Africa—0.0% | |||
| Mediclinic International Ltd.,expiring 10/5/12* | |||
| (Cost: $0) | 1,070 | 1,589 | |
| TOTAL INVESTMENTS IN SECURITIES—99.6% | |||
| (Cost: $14,633,129) | 13,394,819 | ||
| Other Assets in Excess of Liabilities—0.4% | 56,378 | ||
| Net Assets—100.0% | $ | 13,451,197 | |
| † | The Consolidated Schedule of Investments includes the accounts of the wholly owned subsidiary. All inter-company accounts and transactions have been eliminated in consolidation. See Note 2 of the Notes to Financial Statements. |
| * | Non-income producing security |
| ** | Less than 0.05% |
| ADR | American Depositary Receipts |
| GDR | Global Depositary Receipts |
| 144A | Series 144A securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may not be resold subject to that rule except to qualified institutional buyers. Unless otherwise noted, Series 144A securities are deemed to be liquid. |
| % of | ||||||||
| Summary by Industry | Value | Net Assets | ||||||
| Aerospace & Defense | $ | 41,634 | 0.3 | % | ||||
| Automobiles | 245,043 | 1.8 | ||||||
| Beverages | 460,919 | 3.4 | ||||||
| Chemicals | 103,425 | 0.8 | ||||||
| Commercial Banks | 2,581,522 | 19.2 | ||||||
| Communications Equipment | 3,851 | 0.0 | ** | |||||
| Computers & Peripherals | 41,154 | 0.3 | ||||||
| Construction & Engineering | 84,478 | 0.6 | ||||||
| Construction Materials | 97,859 | 0.7 | ||||||
| Distributors | 48,746 | 0.4 | ||||||
| Diversified Telecommunication Services | 296,810 | 2.2 | ||||||
| Electric Utilities | 255,308 | 1.9 | ||||||
| Food & Staples Retailing | 486,944 | 3.6 | ||||||
| Food Products | 297,328 | 2.2 | ||||||
| Gas Utilities | 60,129 | 0.5 | ||||||
| Health Care Equipment & Supplies | 63,924 | 0.5 | ||||||
| Health Care Providers & Services | 58,048 | 0.4 | ||||||
| Hotels, Restaurants & Leisure | 75,231 | 0.6 | ||||||
| Household Products | 108,973 | 0.8 | ||||||
| Independent Power Producers & Energy Traders | 80,772 | 0.6 | ||||||
| Industrial Conglomerates | 150,752 | 1.1 | ||||||
| Insurance | 218,128 | 1.6 | ||||||
| Internet Software & Services | 401,899 | 3.0 | ||||||
| IT Services | 353,857 | 2.6 | ||||||
| Machinery | 37,589 | 0.3 | ||||||
| Media | 375,157 | 2.8 | ||||||
| Metals & Mining | 911,579 | 6.8 | ||||||
| Multiline Retail | 122,248 | 0.9 | ||||||
| Oil, Gas & Consumable Fuels | 2,982,949 | 22.2 | ||||||
| Pharmaceuticals | 200,444 | 1.5 | ||||||
| Software | 10,907 | 0.1 | ||||||
| Thrifts & Mortgage Finance | 226,308 | 1.7 | ||||||
| Tobacco | 96,359 | 0.7 | ||||||
| Water Utilities | 43,366 | 0.3 | ||||||
| Wireless Telecommunication Services | 1,771,179 | 13.2 | ||||||
| Total Investments | 13,394,819 | 99.6 | ||||||
| Other Assets in Excess of Liabilities | 56,378 | 0.4 | ||||||
| Net Assets | $ | 13,451,197 | 100.0 | % | ||||
| ** | Less than 0.05% |
The accompanying notes are an integral part of these financial statements.
EGA Emerging Global Shares Trust 43
Schedule of Investments (Consolidated)†
EGShares Health Care GEMS ETF
September 30, 2012 (Unaudited)
| Investments | Shares | Value | |
| COMMON STOCKS—100.3% | |||
| Chile—1.3% | |||
| Banmedica SA | 13,138 | $ | 26,356 |
| China—20.3% | |||
| China Pharmaceutical Group, Ltd.* | 26,726 | 7,653 | |
| Mindray Medical International, Ltd. ADR | 3,437 | 115,518 | |
| Shandong Weigao Group Medical Polymer Co., Ltd. Class H | 78,645 | 101,638 | |
| Shanghai Pharmaceuticals Holding Co., Ltd. Class H | 30,700 | 56,940 | |
| Sinopharm Group Co. Class H | 30,125 | 96,554 | |
| WuXi PharmaTech Cayman, Inc. ADR* | 3,443 | 51,404 | |
| Total China | 429,707 | ||
| Hungary—5.2% | |||
| EGIS Pharmaceuticals PLC | 201 | 15,965 | |
| Richter Gedeon Nyrt. | 531 | 92,979 | |
| Total Hungary | 108,944 | ||
| India—31.1% | |||
| Apollo Hospitals Enterprise, Ltd. | 4,309 | 59,739 | |
| Aurobindo Pharma, Ltd. | 6,001 | 16,156 | |
| Biocon, Ltd. | 3,172 | 16,526 | |
| Cipla, Ltd. | 14,209 | 102,395 | |
| Divi’s Laboratories, Ltd. | 1,856 | 38,095 | |
| Dr. Reddy’s Laboratories, Ltd. ADR | 3,365 | 103,844 | |
| Glenmark Pharmaceuticals, Ltd. | 5,075 | 40,503 | |
| Piramal Healthcare, Ltd. | 4,336 | 38,160 | |
| Ranbaxy Laboratories, Ltd.* | 5,696 | 57,208 | |
| Sun Pharmaceutical Industries, Ltd. | 14,046 | 185,225 | |
| Total India | 657,851 | ||
| Indonesia—4.1% | |||
| Kalbe Farma Tbk PT | 177,000 | 86,928 | |
| Malaysia—1.3% | |||
| Top Glove Corp. BHD | 17,000 | 27,253 | |
| Mexico—3.0% | |||
| Genomma Lab Internacional SAB de CV Class B* | 32,515 | 62,995 | |
| Russia—2.0% | |||
| Pharmstandard OJSC GDR* | 2,972 | 42,202 | |
| Investments | Shares | Value | ||
| South Africa—27.6% | ||||
| Adcock Ingram Holdings, Ltd. | 6,556 | $ | 47,189 | |
| Aspen Pharmacare Holdings, Ltd. | 12,305 | 213,257 | ||
| Life Healthcare Group Holdings, Ltd. | 39,509 | 152,029 | ||
| Mediclinic International, Ltd. | 14,158 | 70,351 | ||
| Netcare, Ltd. | 46,653 | 101,209 | ||
| Total South Africa | 584,035 | |||
| Thailand—4.4% | ||||
| Bangkok Dusit Medical Services PCL | 14,200 | 49,594 | ||
| Bumrungrad Hospital PCL | 16,300 | 43,424 | ||
| Total Thailand | 93,018 | |||
| TOTAL COMMON STOCKS | ||||
| (Cost: $1,907,783) | 2,119,289 | |||
| RIGHTS—0.3% | ||||
| South Africa—0.3% | ||||
| Mediclinic International Ltd.,expiring 10/5/12* | ||||
| (Cost: $0) | 4,709 | 6,991 | ||
| TOTAL INVESTMENTS IN SECURITIES—100.6% | ||||
| (Cost: $1,907,783) | 2,126,280 | |||
| Liabilities in Excess of Other Assets—(0.6)% | (12,631 | ) | ||
| Net Assets—100.0% | $ | 2,113,649 | ||
| † | The Consolidated Schedule of Investments includes the accounts of the wholly owned subsidiary. All inter-company accounts and transactions have been eliminated in consolidation. See Note 2 of the Notes to Financial Statements. |
| * | Non-income producing security |
| ADR | American Depositary Receipts |
| GDR | Global Depositary Receipts |
| % of | ||||||||
| Summary by Industry | Value | Net Assets | ||||||
| Biotechnology | $ | 16,526 | 0.8 | % | ||||
| Health Care Equipment & Supplies | 251,400 | 11.9 | ||||||
| Health Care Providers & Services | 656,196 | 31.1 | ||||||
| Life Sciences Tools & Services | 89,499 | 4.2 | ||||||
| Pharmaceuticals | 1,112,659 | 52.6 | ||||||
| Total Investments | 2,126,280 | 100.6 | ||||||
| Liabilities in Excess of Other Assets | (12,631 | ) | (0.6 | ) | ||||
| Net Assets | $ | 2,113,649 | 100.0 | % | ||||
The accompanying notes are an integral part of these financial statements.
44 EGA Emerging Global Shares Trust
Schedule of Investments (Consolidated)†
EGShares India Consumer ETF
September 30, 2012 (Unaudited)
| Investments | Shares | Value | |
| COMMON STOCKS—101.2% | |||
| Automobiles—17.7% | |||
| Bajaj Auto, Ltd. | 2,646 | $ | 91,809 |
| Hero Motocorp, Ltd. | 2,388 | 85,130 | |
| Mahindra & Mahindra, Ltd. | 6,666 | 109,282 | |
| Tata Motors, Ltd. | 17,788 | 90,230 | |
| TVS Motor Co., Ltd. | 17,032 | 13,659 | |
| Total Automobiles | 390,110 | ||
| Beverages—13.8% | |||
| United Breweries, Ltd. | 10,367 | 128,455 | |
| United Spirits, Ltd. | 7,628 | 175,873 | |
| Total Beverages | 304,328 | ||
| Food Products—18.3% | |||
| GlaxoSmithKline Consumer Healthcare, Ltd. | 1,855 | 105,564 | |
| McLeod Russel India, Ltd. | 6,772 | 41,496 | |
| Nestle India, Ltd. | 1,116 | 93,138 | |
| Ruchi Soya Industries, Ltd. | 18,566 | 26,241 | |
| Shree Renuka Sugars, Ltd. | 50,989 | 34,850 | |
| Tata Global Beverages, Ltd. | 37,693 | 102,085 | |
| Total Food Products | 403,374 | ||
| Hotels, Restaurants & Leisure—7.6% | |||
| Cox & Kings, Ltd. | 7,028 | 18,501 | |
| Indian Hotels Co., Ltd. | 55,741 | 71,123 | |
| Jubilant Foodworks, Ltd.* | 3,031 | 78,882 | |
| Total Hotels, Restaurants & Leisure | 168,506 | ||
| Household Durables—2.6% | |||
| TTK Prestige, Ltd. | 307 | 21,713 | |
| Videocon Industries, Ltd. | 10,874 | 35,346 | |
| Total Household Durables | 57,059 | ||
| Investments | Shares | Value | ||
| Household Products—5.9% | ||||
| Hindustan Unilever, Ltd. | 12,545 | $ | 129,826 | |
| Media—13.3% | ||||
| Dish TV India, Ltd.* | 41,850 | 65,499 | ||
| Hathway Cable & Datacom, Ltd.* | 5,618 | 24,125 | ||
| Sun TV Network, Ltd. | 15,013 | 99,351 | ||
| Zee Entertainment Enterprises, Ltd. | 28,262 | 104,673 | ||
| Total Media | 293,648 | |||
| Multiline Retail—1.0% | ||||
| Shoppers Stop, Ltd. | 3,065 | 23,261 | ||
| Personal Products—5.7% | ||||
| Godrej Consumer Products, Ltd. | 9,888 | 125,407 | ||
| Textiles, Apparel & Luxury Goods—9.9% | ||||
| Arvind, Ltd. | 14,197 | 21,506 | ||
| Bata India, Ltd. | 3,452 | 63,961 | ||
| Raymond, Ltd. | 3,761 | 28,041 | ||
| Titan Industries, Ltd. | 21,019 | 104,069 | ||
| Total Textiles, Apparel & Luxury Goods | 217,577 | |||
| Tobacco—5.4% | ||||
| ITC, Ltd. | 23,233 | 119,986 | ||
| TOTAL INVESTMENTS IN SECURITIES—101.2% | ||||
| (Cost: $1,836,174) | 2,233,082 | |||
| Liabilities in Excess of Other Assets—(1.2)% | (25,392 | ) | ||
| Net Assets—100.0% | $ | 2,207,690 | ||
| † | The Consolidated Schedule of Investments includes the accounts of the wholly owned subsidiary. All inter-company accounts and transactions have been eliminated in consolidation. See Note 2 of the Notes to Financial Statements. |
| * | Non-income producing security |
The accompanying notes are an integral part of these financial statements.
EGA Emerging Global Shares Trust 45
Schedule of Investments (Consolidated)†
EGShares India Infrastructure ETF
September 30, 2012 (Unaudited)
| Investments | Shares | Value | |
| COMMON STOCKS—99.7% | |||
| Automobiles—4.7% | |||
| Tata Motors, Ltd. | 551,835 | $ | 2,799,193 |
| Construction & Engineering—5.5% | |||
| IRB Infrastructure Developers, Ltd. | 115,138 | 331,913 | |
| Larsen & Toubro, Ltd. | 96,778 | 2,929,853 | |
| Total Construction & Engineering | 3,261,766 | ||
| Construction Materials—10.2% | |||
| ACC, Ltd. | 109,925 | 3,063,707 | |
| Ambuja Cements, Ltd. | 788,632 | 3,020,261 | |
| Total Construction Materials | 6,083,968 | ||
| Electric Utilities—13.4% | |||
| Power Grid Corp. of India, Ltd. | 1,184,394 | 2,705,839 | |
| Reliance Infrastructure, Ltd. | 223,966 | 2,282,759 | |
| Tata Power Co., Ltd. | 1,466,151 | 2,972,886 | |
| Total Electric Utilities | 7,961,484 | ||
| Electrical Equipment—5.0% | |||
| Bharat Heavy Electricals, Ltd. | 638,969 | 2,991,628 | |
| Gas Utilities—5.9% | |||
| GAIL India, Ltd. | 407,046 | 2,953,775 | |
| Indraprastha Gas, Ltd. | 108,414 | 544,177 | |
| Total Gas Utilities | 3,497,952 | ||
| Independent Power Producers & Energy Traders—9.9% | |||
| Adani Power, Ltd.* | 548,098 | 550,228 | |
| GMR Infrastructure, Ltd.* | 1,727,878 | 812,425 | |
| NTPC, Ltd. | 879,575 | 2,803,234 | |
| Reliance Power, Ltd.* | 915,905 | 1,705,221 | |
| Total Independent Power Producers & Energy Traders | 5,871,108 | ||
| Industrial Conglomerates—4.8% | |||
| Jaiprakash Associates, Ltd. | 1,828,580 | 2,851,468 | |
| Investments | Shares | Value | |
| Machinery—3.2% | |||
| Ashok Leyland, Ltd. | 2,615,664 | $ | 1,195,137 |
| Pipavav Defence & Offshore Engineering Co., Ltd.* | 465,526 | 692,398 | |
| Total Machinery | 1,887,535 | ||
| Media—1.5% | |||
| Dish TV India, Ltd.* | 586,773 | 918,345 | |
| Metals & Mining—13.5% | |||
| Jindal Steel & Power, Ltd. | 352,630 | 2,855,738 | |
| Sterlite Industries India, Ltd. | 1,313,992 | 2,480,006 | |
| Tata Steel, Ltd. | 356,848 | 2,712,302 | |
| Total Metals & Mining | 8,048,046 | ||
| Oil, Gas & Consumable Fuels—1.9% | |||
| Petronet LNG, Ltd. | 385,270 | 1,153,728 | |
| Real Estate Management & Development—7.3% | |||
| DLF, Ltd. | 585,792 | 2,590,501 | |
| Housing Development & Infrastructure, Ltd.* | 408,751 | 754,808 | |
| Unitech, Ltd.* | 2,149,759 | 990,410 | |
| Total Real Estate Management & Development | 4,335,719 | ||
| Transportation Infrastructure—2.8% | |||
| Adani Ports and Special Economic Zone, Ltd. | 682,855 | 1,650,659 | |
| Wireless Telecommunication Services—10.1% | |||
| Bharti Airtel, Ltd. | 541,054 | 2,722,965 | |
| Idea Cellular, Ltd.* | 1,176,232 | 1,902,220 | |
| Reliance Communications, Ltd. | 1,096,565 | 1,347,187 | |
| Total Wireless Telecommunication Services | 5,972,372 | ||
| TOTAL INVESTMENTS IN SECURITIES—99.7% | |||
| (Cost: $73,868,745) | 59,284,971 | ||
| Other Assets in Excess of Liabilities—0.3% | 166,320 | ||
| Net Assets—100.0% | $ | 59,451,291 | |
| † | The Consolidated Schedule of Investments includes the accounts of the wholly owned subsidiary. All inter-company accounts and transactions have been eliminated in consolidation. See Note 2 of the Notes to Financial Statements. |
| * | Non-income producing security |
The accompanying notes are an integral part of these financial statements.
46 EGA Emerging Global Shares Trust
Schedule of Investments (Consolidated)†
EGShares India Small Cap ETF
September 30, 2012 (Unaudited)
| Investments | Shares | Value | |
| COMMON STOCKS—99.8% | |||
| Auto Components—4.9% | |||
| Amtek Auto, Ltd. | 122,617 | $ | 205,853 |
| Apollo Tyres, Ltd. | 216,028 | 379,467 | |
| Bharat Forge, Ltd. | 107,574 | 623,173 | |
| Total Auto Components | 1,208,493 | ||
| Automobiles—0.5% | |||
| TVS Motor Co., Ltd. | 151,027 | 121,119 | |
| Biotechnology—1.3% | |||
| Biocon, Ltd. | 61,522 | 320,528 | |
| Building Products—0.7% | |||
| Sintex Industries, Ltd. | 140,306 | 177,161 | |
| Chemicals—6.1% | |||
| Chambal Fertilizers & Chemicals, Ltd. | 184,454 | 258,260 | |
| Godrej Industries, Ltd. | 59,192 | 322,192 | |
| Nagarjuna Fertilizers & Chemicals, Ltd.* + | 582,385 | 184,945 | |
| Tata Chemicals, Ltd. | 15,641 | 95,145 | |
| United Phosphorus, Ltd. | 261,031 | 651,526 | |
| Total Chemicals | 1,512,068 | ||
| Commercial Banks—12.0% | |||
| Allahabad Bank | 157,484 | 438,161 | |
| Dena Bank, Ltd. | 109,025 | 219,311 | |
| Development Credit Bank, Ltd.* | 161,492 | 134,564 | |
| Federal Bank, Ltd. | 131,423 | 1,113,651 | |
| Oriental Bank of Commerce | 98,851 | 565,706 | |
| UCO Bank | 196,925 | 287,108 | |
| Vijaya Bank, Ltd. | 182,448 | 194,572 | |
| Total Commercial Banks | 2,953,073 | ||
| Construction & Engineering—5.2% | |||
| IRB Infrastructure Developers, Ltd. | 94,886 | 273,531 | |
| IVRCL, Ltd.* | 174,114 | 153,334 | |
| Lanco Infratech, Ltd.* | 533,756 | 152,299 | |
| Praj Industries, Ltd. | 97,000 | 87,998 | |
| Punj Lloyd, Ltd. | 169,906 | 175,882 | |
| Voltas, Ltd. | 181,411 | 429,753 | |
| Total Construction & Engineering | 1,272,797 | ||
| Construction Materials—1.1% | |||
| Century Textiles & Industries, Ltd. | 40,726 | 277,349 | |
| Diversified Consumer Services—0.5% | |||
| Educomp Solutions, Ltd. | 36,837 | 112,198 | |
| Diversified Financial Services—4.9% | |||
| IFCI, Ltd. | 584,139 | 343,318 | |
| Indiabulls Financial Services, Ltd. | 162,567 | 659,422 | |
| L&T Finance Holdings, Ltd.* | 232,421 | 212,834 | |
| Total Diversified Financial Services | 1,215,574 | ||
| Electrical Equipment—4.5% | |||
| Alstom T&D India, Ltd. | 48,168 | 195,064 | |
| Crompton Greaves, Ltd. | 296,104 | 707,910 | |
| Suzlon Energy, Ltd.* | 654,168 | 220,144 | |
| Total Electrical Equipment | 1,123,118 | ||
| Energy Equipment & Services—0.5% | |||
| Aban Offshore, Ltd. | 16,175 | 134,258 | |
| Investments | Shares | Value | |
| Food Products—5.9% | |||
| Bajaj Hindusthan, Ltd. | 319,330 | $ | 192,524 |
| Ruchi Soya Industries, Ltd. | 129,678 | 183,288 | |
| Shree Renuka Sugars, Ltd. | 330,242 | 225,713 | |
| Tata Global Beverages, Ltd. | 317,310 | 859,375 | |
| Total Food Products | 1,460,900 | ||
| Gas Utilities—1.7% | |||
| Gujarat State Petronet, Ltd. | 274,968 | 420,702 | |
| Health Care Providers & Services—4.2% | |||
| Apollo Hospitals Enterprise, Ltd. | 74,136 | 1,027,812 | |
| Hotels, Restaurants & Leisure—2.8% | |||
| Cox & Kings, Ltd. | 42,644 | 112,259 | |
| Jubilant Foodworks, Ltd.* | 22,520 | 586,088 | |
| Total Hotels, Restaurants & Leisure | 698,347 | ||
| Household Durables—0.6% | |||
| TTK Prestige, Ltd. | 2,033 | 143,786 | |
| Independent Power Producers & Energy Traders—0.7% | |||
| GVK Power & Infrastructure, Ltd.* | 574,620 | 159,057 | |
| Industrial Conglomerates—2.2% | |||
| Max India, Ltd.* | 127,483 | 542,126 | |
| IT Services—7.2% | |||
| Core Education & Technologies, Ltd. | 50,272 | 313,479 | |
| Hexaware Technologies, Ltd. | 165,408 | 381,964 | |
| Mphasis, Ltd. | 66,667 | 508,613 | |
| Tech Mahindra, Ltd. | 30,788 | 567,400 | |
| Total IT Services | 1,771,456 | ||
| Machinery—4.5% | |||
| ABG Shipyard, Ltd.* | 15,182 | 108,097 | |
| Ashok Leyland, Ltd. | 957,161 | 437,342 | |
| Escorts, Ltd. | 106,120 | 128,664 | |
| Pipavav Defence & Offshore Engineering Co., Ltd.* | 298,820 | 444,448 | |
| Total Machinery | 1,118,551 | ||
| Media—1.4% | |||
| Dish TV India, Ltd.* | 222,124 | 347,641 | |
| Metals & Mining—3.4% | |||
| Bhushan Steel, Ltd. | 49,147 | 464,775 | |
| Orissa Minerals Development Co., Ltd. | 230 | 197,882 | |
| Welspun Corp., Ltd. | 93,500 | 179,661 | |
| Total Metals & Mining | 842,318 | ||
| Oil, Gas & Consumable Fuels—1.0% | |||
| Essar Oil, Ltd.* | 136,013 | 130,610 | |
| Hindustan Oil Exploration Co., Ltd.* | 55,452 | 122,269 | |
| Total Oil, Gas & Consumable Fuels | 252,879 | ||
| Pharmaceuticals—9.4% | |||
| Aurobindo Pharma, Ltd. | 102,821 | 276,814 | |
| Glenmark Pharmaceuticals, Ltd. | 109,522 | 874,079 | |
| Orchid Chemicals & Pharmaceuticals, Ltd. | 39,950 | 85,096 | |
| Strides Arcolab, Ltd. | 32,521 | 545,511 | |
| Wockhardt, Ltd.* | 22,150 | 543,787 | |
| Total Pharmaceuticals | 2,325,287 | ||
The accompanying notes are an integral part of these financial statements.
EGA Emerging Global Shares Trust 47
Schedule of Investments (Consolidated)†
(concluded)
EGShares India Small Cap ETF
September 30, 2012 (Unaudited)
| Investments | Shares | Value | |
| Real Estate Management & Development—5.3% | |||
| Delta Corp., Ltd. | 101,988 | $ | 136,706 |
| Housing Development & Infrastructure, Ltd.* | 198,069 | 365,758 | |
| Indiabulls Real Estate, Ltd.* | 224,757 | 245,658 | |
| Parsvnath Developers, Ltd.* | 105,151 | 79,942 | |
| Unitech, Ltd.* | 1,067,616 | 491,859 | |
| Total Real Estate Management & Development | 1,319,923 | ||
| Software—1.7% | |||
| Financial Technologies India, Ltd. | 22,770 | 421,080 | |
| Investments | Shares | Value | |
| Textiles, Apparel & Luxury Goods—5.6% | |||
| Alok Industries, Ltd. | 475,912 | $ | 113,688 |
| Arvind, Ltd. | 126,265 | 191,271 | |
| Bata India, Ltd. | 22,998 | 426,125 | |
| Bombay Dyeing & Manufacturing Co., Ltd. | 15,198 | 142,039 | |
| Gitanjali Gems, Ltd. | 32,301 | 213,207 | |
| Raymond, Ltd. | 28,386 | 211,637 | |
| VIP Industries, Ltd. | 54,863 | 96,162 | |
| Total Textiles, Apparel & Luxury Goods | 1,394,129 | ||
| TOTAL INVESTMENTS IN SECURITIES—99.8% | |||
| (Cost: $24,681,695) | 24,673,730 | ||
| Other Assets in Excess of Liabilities—0.2% | 50,390 | ||
| Net Assets—100.0% | $ 24,724,120 | ||
| † | The Consolidated Schedule of Investments includes the accounts of the wholly owned subsidiary. All inter-company accounts and transactions have been eliminated in consolidation. See Note 2 of the Notes to Financial Statements. |
| * | Non-income producing security |
| + | Fair valued security. When trading resumes, security is expected to increase to 640,623 shares. |
The accompanying notes are an integral part of these financial statements.
48 EGA Emerging Global Shares Trust
Schedule of Investments (Consolidated)†
EGShares Industrials GEMS ETF
September 30, 2012 (Unaudited)
| Investments | Shares | Value | |
| COMMON STOCKS—100.1% | |||
| Brazil—3.9% | |||
| Embraer SA ADR | 4,137 | $ | 110,127 |
| China—22.6% | |||
| Anhui Conch Cement Co., Ltd. Class H | 33,535 | 104,456 | |
| Beijing Enterprises Holdings, Ltd. | 12,444 | 82,979 | |
| China Communications Construction Co., Ltd. Class H | 107,609 | 87,023 | |
| China Merchants Holdings International Co., Ltd. | 28,093 | 86,599 | |
| China National Building Material Co., Ltd. Class H | 67,320 | 74,412 | |
| China Railway Construction Corp., Ltd. Class H | 44,200 | 39,564 | |
| China Railway Group, Ltd. Class H | 98,725 | 43,166 | |
| Citic Pacific, Ltd. | 34,014 | 40,844 | |
| Weichai Power Co., Ltd. Class H | 12,148 | 37,212 | |
| Zoomlion Heavy Industry Science And | |||
| Technology Co., Ltd. Class H | 34,547 | 39,256 | |
| Total China | 635,511 | ||
| Colombia—3.5% | |||
| Inversiones Argos SA | 8,793 | 97,065 | |
| Egypt—3.7% | |||
| Orascom Construction Industries | 2,226 | 105,108 | |
| India—18.4% | |||
| Adani Enterprises, Ltd. | 3,855 | 14,702 | |
| Ambuja Cements, Ltd. | 15,661 | 59,978 | |
| Bharat Heavy Electricals, Ltd. | 14,296 | 66,933 | |
| Larsen & Toubro, Ltd. | 3,859 | 116,827 | |
| Mahindra & Mahindra, Ltd. | 8,137 | 133,398 | |
| Tata Motors, Ltd. ADR | 4,898 | 125,780 | |
| Total India | 517,618 | ||
| Indonesia—10.2% | |||
| Indocement Tunggal Prakarsa Tbk PT | 45,738 | 97,259 | |
| Semen Gresik Persero Tbk PT | 75,406 | 113,857 | |
| United Tractors Tbk PT | 35,760 | 77,349 | |
| Total Indonesia | 288,465 | ||
| Malaysia—7.0% | |||
| Sime Darby Bhd | 61,800 | 198,148 | |
| Investments | Shares | Value | ||
| Mexico—14.6% | ||||
| Alfa, SAB Class A | 73,210 | $ | 136,430 | |
| Cemex SAB de CV ADR* | 27,291 | 227,334 | ||
| Grupo Carso SAB de CV Series A1 | 13,985 | 47,848 | ||
| Total Mexico | 411,612 | |||
| Philippines—2.5% | ||||
| Aboitiz Equity Ventures, Inc. | 60,700 | 71,082 | ||
| South Africa—10.6% | ||||
| Bidvest Group, Ltd. | 6,907 | 172,442 | ||
| Imperial Holdings, Ltd. | 5,522 | 125,489 | ||
| Total South Africa | 297,931 | |||
| Thailand—3.1% | ||||
| Siam Cement PCL | 7,600 | 86,173 | ||
| TOTAL INVESTMENTS IN SECURITIES—100.1% | ||||
| (Cost: $2,731,072) | 2,818,840 | |||
| Liabilities in Excess of Other Assets—(0.1)% | (2,651 | ) | ||
| Net Assets—100.0% | $ | 2,816,189 | ||
| † | The Consolidated Schedule of Investments includes the accounts of the wholly-owned subsidiary. All inter-company accounts and transactions have been eliminated in consolidation. See Note 2 of the Notes to Financial Statements. |
| * | Non-income producing security |
| ADR | American Depositary Receipts |
| % of | ||||||||
| Summary by Industry | Value | Net Assets | ||||||
| Aerospace & Defense | $ | 110,127 | 3.9 | % | ||||
| Automobiles | 259,178 | 9.2 | ||||||
| Construction & Engineering | 391,688 | 13.9 | ||||||
| Construction Materials | 860,534 | 30.6 | ||||||
| Distributors | 125,489 | 4.4 | ||||||
| Electrical Equipment | 66,933 | 2.4 | ||||||
| Industrial Conglomerates | 749,773 | 26.6 | ||||||
| Machinery | 153,817 | 5.5 | ||||||
| Trading Companies & Distributors | 14,702 | 0.5 | ||||||
| Transportation Infrastructure | 86,599 | 3.1 | ||||||
| Total Investments | 2,818,840 | 100.1 | ||||||
| Liabilities in Excess of Other Assets | (2,651 | ) | (0.1 | ) | ||||
| Net Assets | $ | 2,816,189 | 100.0 | % | ||||
The accompanying notes are an integral part of these financial statements.
EGA Emerging Global Shares Trust 49
Schedule of Investments (Consolidated)†
EGShares Low Volatility Emerging Markets Dividend ETF
September 30, 2012 (Unaudited)
| Investments | Shares | Value | |
| COMMON STOCKS—100.9% | |||
| Brazil—2.2% | |||
| Companhia Paranaense de Energia-Copel Preference Shares ADR | 106,948 | $ | 1,756,086 |
| Cayman Islands—2.1% | |||
| Shenzhou International Group, Ltd. | 1,001,468 | 1,717,928 | |
| China—7.4% | |||
| China Petroleum & Chemical Corp. Class H | 2,041,212 | 1,906,088 | |
| Datang International Power Generation Co., Ltd. Class H | 5,640,525 | 1,898,787 | |
| Jiangsu Expressway Co., Ltd. Class H | 2,671,171 | 2,215,281 | |
| Total China | 6,020,156 | ||
| Colombia—3.9% | |||
| Ecopetrol SA ADR | 54,028 | 3,183,870 | |
| India—11.4% | |||
| Ashok Leyland, Ltd. | 5,851,672 | 2,673,719 | |
| Bharat Petroleum Corp., Ltd. | 320,056 | 2,115,907 | |
| Indiabulls Financial Services, Ltd. | 1,103,056 | 4,474,335 | |
| Total India | 9,263,961 | ||
| Malaysia—9.2% | |||
| DiGi.Com BHD | 1,303,900 | 2,252,443 | |
| Kuala Lumpur Kepong BHD | 266,400 | 1,922,717 | |
| Maxis BHD | 1,435,100 | 3,249,106 | |
| Total Malaysia | 7,424,266 | ||
| Mexico—9.1% | |||
| Bolsa Mexicana de Valores SAB de CV | 1,261,201 | 2,613,187 | |
| Grupo Modelo SAB de CV Series C | 227,224 | 2,048,104 | |
| Kimberly-Clark de Mexico SAB de CV Class A | 1,146,404 | 2,740,902 | |
| Total Mexico | 7,402,193 | ||
| Philippines—2.7% | |||
| Aboitiz Power Corp. | 2,673,100 | 2,149,886 | |
| Poland—5.0% | |||
| Telekomunikacja Polska SA | 784,434 | 4,028,012 | |
| Russia—2.4% | |||
| LUKOIL OAO ADR | 31,727 | 1,954,383 | |
| South Africa—21.6% | |||
| ABSA Group, Ltd. | 165,072 | 2,770,823 | |
| Growthpoint Properties Ltd. | 1,007,845 | 3,037,771 | |
| Lewis Group Ltd. | 411,240 | 3,564,082 | |
| Redefine Properties Ltd. | 3,614,303 | 4,095,639 | |
| Vodacom Group, Ltd. | 325,262 | 4,024,803 | |
| Total South Africa | 17,493,118 | ||
| Investments | Shares | Value | ||
| Thailand—7.6% | ||||
| Charoen Pokphand Foods PCL | 1,867,500 | $ | 2,032,529 | |
| Shin Corp. PCL | 1,832,684 | 4,078,585 | ||
| Total Thailand | 6,111,114 | |||
| Turkey—16.3% | ||||
| Arcelik AS | 397,860 | 2,118,257 | ||
| Brisa Bridgestone Sabanci Sanayi ve Ticaret AS | 733,339 | 1,952,194 | ||
| Eczacibasi Ilac Sinai ve Finansal Yatirimlar | ||||
| Sanayi ve Ticaret AS | 2,420,035 | 2,506,831 | ||
| Konya Cimento Sanayii AS | 13,984 | 2,359,742 | ||
| Turk Traktor ve Ziraat Makineleri AS | 197,421 | 4,232,963 | ||
| Total Turkey | 13,169,987 | |||
| TOTAL INVESTMENTS IN SECURITIES—100.9% | ||||
| (Cost: $82,185,188) | 81,674,960 | |||
| Liabilities in Excess of Other Assets—(0.9)% | (698,945 | ) | ||
| Net Assets—100.0% | $ | 80,976,015 | ||
| † | The Consolidated Schedule of Investments includes the accounts of the wholly owned subsidiary. All inter-company accounts and transactions have been eliminated in consolidation. See Note 2 of the Notes to Financial Statements. |
| ADR | American Depositary Receipts |
| % of | ||||||||
| Summary by Industry | Value | Net Assets | ||||||
| Auto Components | $ | 1,952,194 | 2.4 | % | ||||
| Beverages | 2,048,104 | 2.5 | ||||||
| Commercial Banks | 2,770,823 | 3.4 | ||||||
| Construction Materials | 2,359,742 | 2.9 | ||||||
| Diversified Financial Services | 7,087,522 | 8.8 | ||||||
| Diversified Telecommunication Services | 4,028,012 | 5.0 | ||||||
| Electric Utilities | 1,756,086 | 2.2 | ||||||
| Food Products | 3,955,246 | 4.9 | ||||||
| Household Durables | 2,118,257 | 2.6 | ||||||
| Household Products | 2,740,902 | 3.4 | ||||||
| Independent Power Producers & Energy Traders | 4,048,673 | 5.0 | ||||||
| Machinery | 6,906,682 | 8.5 | ||||||
| Oil, Gas & Consumable Fuels | 9,160,248 | 11.3 | ||||||
| Pharmaceuticals | 2,506,831 | 3.1 | ||||||
| Real Estate Management & Development | 7,133,410 | 8.8 | ||||||
| Specialty Retail | 3,564,082 | 4.4 | ||||||
| Textiles, Apparel & Luxury Goods | 1,717,928 | 2.1 | ||||||
| Transportation Infrastructure | 2,215,281 | 2.8 | ||||||
| Wireless Telecommunication Services | 13,604,937 | 16.8 | ||||||
| Total Investments | 81,674,960 | 100.9 | ||||||
| Liabilities in Excess of Other Assets | (698,945 | ) | (0.9 | ) | ||||
| Net Assets | $ | 80,976,015 | 100.0 | % | ||||
The accompanying notes are an integral part of these financial statements.
50 EGA Emerging Global Shares Trust
Schedule of Investments (Consolidated)†
EGShares Technology GEMS ETF
September 30, 2012 (Unaudited)
| Investments | Shares | Value | |
| COMMON STOCKS—100.6% | |||
| Cayman Islands—1.7% | |||
| Comba Telecom Systems Holdings, Ltd. | 90,284 | $ | 30,276 |
| Chile—3.1% | |||
| Sonda SA | 18,782 | 56,399 | |
| China—43.6% | |||
| AsiaInfo-Linkage, Inc.* | 3,255 | 38,116 | |
| Baidu, Inc. ADR* | 1,609 | 187,963 | |
| China Communications Services Corp., Ltd. Class H | 103,000 | 59,648 | |
| Lenovo Group, Ltd. | 114,279 | 94,628 | |
| NetEase.com, Inc. ADR* | 1,479 | 83,031 | |
| SINA Corp.* | 1,321 | 85,442 | |
| Sohu.com, Inc.* | 1,171 | 49,288 | |
| Spreadtrum Communications, Inc. ADR | 2,409 | 49,529 | |
| TCL Communication Technology Holdings, Ltd. | 91,005 | 32,983 | |
| Travelsky Technology, Ltd. Class H | 68,000 | 36,135 | |
| VanceInfo Technologies, Inc. ADR* | 2,907 | 22,820 | |
| ZTE Corp. Class H | 29,900 | 47,974 | |
| Total China | 787,557 | ||
| India—35.7% | |||
| Financial Technologies India, Ltd. | 1,947 | 36,006 | |
| Hexaware Technologies, Ltd. | 14,800 | 34,176 | |
| Infosys, Ltd. ADR | 3,350 | 162,609 | |
| Mphasis, Ltd. | 5,483 | 41,831 | |
| Oracle Financial Services Software, Ltd.* | 861 | 49,119 | |
| Rolta India, Ltd. | 16,212 | 22,330 | |
| Satyam Computer Services, Ltd.* | 28,475 | 59,790 | |
| Tata Consultancy Services, Ltd. | 4,887 | 120,069 | |
| Tech Mahindra, Ltd. | 2,198 | 40,507 | |
| Wipro, Ltd. ADR | 8,649 | 77,409 | |
| Total India | 643,846 | ||
| Indonesia—2.3% | |||
| Tower Bersama Infrastructure Tbk PT* | 91,000 | 42,315 | |
| Poland—2.7% | |||
| Asseco Poland SA | 3,531 | 49,247 | |
| Investments | Shares | Value | ||
| Russia—3.5% | ||||
| Mail.ru Group, Ltd. GDR | 1,873 | $ | 62,540 | |
| South Africa—3.1% | ||||
| DataTec, Ltd. | 8,853 | 56,490 | ||
| Thailand—3.1% | ||||
| Shin Corp. PCL | 24,900 | 55,414 | ||
| Turkey—1.8% | ||||
| Aselsan Elektronik Sanayi Ve Ticaret AS | 9,144 | 33,101 | ||
| TOTAL INVESTMENTS IN SECURITIES—100.6% | ||||
| (Cost: $1,832,064) | 1,817,185 | |||
| Liabilities in Excess of Other Assets—(0.6)% | (10,847 | ) | ||
| Net Assets—100.0% | $ | 1,806,338 | ||
| † | The Consolidated Schedule of Investments includes the accounts of the wholly owned subsidiary. All inter-company accounts and transactions have been eliminated in consolidation. See Note 2 of the Notes to Financial Statements. |
| * | Non-income producing security |
| ADR | American Depositary Receipts |
| GDR | Global Depositary Receipts |
| % of | ||||||||
| Summary by Industry | Value | Net Assets | ||||||
| Aerospace & Defense | $ | 33,101 | 1.8 | % | ||||
| Communications Equipment | 111,233 | 6.2 | ||||||
| Computers & Peripherals | 94,628 | 5.2 | ||||||
| Diversified Telecommunication Services | 59,648 | 3.3 | ||||||
| Electronic Equipment, Instruments & Components | 56,490 | 3.1 | ||||||
| Internet Software & Services | 468,264 | 25.9 | ||||||
| IT Services | 651,255 | 36.1 | ||||||
| Semiconductors & Semiconductor Equipment | 49,529 | 2.8 | ||||||
| Software | 195,308 | 10.8 | ||||||
| Wireless Telecommunication Services | 97,729 | 5.4 | ||||||
| Total Investments | 1,817,185 | 100.6 | ||||||
| Liabilities in Excess of Other Assets | (10,847 | ) | (0.6 | ) | ||||
| Net Assets | $ | 1,806,338 | 100.0 | % | ||||
The accompanying notes are an integral part of these financial statements.
EGA Emerging Global Shares Trust 51
Schedule of Investments (Consolidated)†
EGShares Telecom GEMS ETF
September 30, 2012 (Unaudited)
| Investments | Shares | Value | |
| COMMON STOCKS—99.6% | |||
| Brazil—7.8% | |||
| Oi SA ADR | 23,720 | $ | 95,354 |
| Telefonica Brasil SA Preference Shares ADR | 6,403 | 139,201 | |
| Tim Participacoes SA ADR | 4,572 | 87,874 | |
| Total Brazil | 322,429 | ||
| Chile—2.0% | |||
| Entel Chile SA | 3,994 | 83,197 | |
| China—16.9% | |||
| China Mobile, Ltd. | 36,560 | 405,292 | |
| China Telecom Corp., Ltd. Class H | 270,673 | 156,401 | |
| China Unicom Hong Kong, Ltd. ADR | 8,637 | 140,870 | |
| Total China | 702,563 | ||
| Czech Republic—1.8% | |||
| Telefonica Czech Republic SA | 3,641 | 73,518 | |
| Egypt—1.8% | |||
| Orascom Telecom Holding SAE* | 123,076 | 76,509 | |
| India—4.3% | |||
| Bharti Airtel, Ltd. | 25,965 | 130,674 | |
| Reliance Communications, Ltd. | 38,508 | 47,309 | |
| Total India | 177,983 | ||
| Indonesia—4.2% | |||
| Telekomunikasi Indonesia Tbk PT ADR | 4,513 | 175,691 | |
| Malaysia—12.7% | |||
| Axiata Group BHD | 74,700 | 158,858 | |
| DiGi.Com BHD | 75,800 | 130,942 | |
| Maxis BHD | 58,800 | 133,125 | |
| Telekom Malaysia BHD | 50,800 | 102,880 | |
| Total Malaysia | 525,805 | ||
| Mexico—10.0% | |||
| America Movil SAB de CV Series L ADR | 16,383 | 416,784 | |
| Morocco—1.6% | |||
| Maroc Telecom | 5,618 | 67,074 | |
| Philippines—3.2% | |||
| Philippine Long Distance Telephone Co. ADR | 2,004 | 132,284 | |
| Investments | Shares | Value | |
| Poland—2.5% | |||
| Telekomunikacja Polska SA | 19,759 | $ | 101,461 |
| Russia—9.3% | |||
| Mobile TeleSystems ADR | 9,463 | 165,792 | |
| Rostelecom OJSC ADR | 5,200 | 131,560 | |
| VimpelCom, Ltd. ADR | 7,615 | 90,618 | |
| Total Russia | 387,970 | ||
| South Africa—10.5% | |||
| MTN Group, Ltd. | 15,054 | 292,299 | |
| Telkom South Africa, Ltd.* | 18,312 | 39,060 | |
| Vodacom Group, Ltd. | 8,524 | 105,476 | |
| Total South Africa | 436,835 | ||
| Thailand—6.0% | |||
| Advanced Info Service PCL | 24,000 | 166,862 | |
| Total Access Communication PCL | 27,100 | 81,441 | |
| Total Thailand | 248,303 | ||
| Turkey—5.0% | |||
| Turk Telekomunikasyon AS | 20,269 | 80,823 | |
| Turkcell Iletisim Hizmetleri AS ADR* | 8,348 | 126,389 | |
| Total Turkey | 207,212 | ||
| TOTAL INVESTMENTS IN SECURITIES—99.6% | |||
| (Cost: $4,044,032) | 4,135,618 | ||
| Other Assets in Excess of Liabilities—0.4% | 17,151 | ||
| Net Assets—100.0% | $ | 4,152,769 |
| † | The Consolidated Schedule of Investments includes the accounts of the wholly owned subsidiary. All inter-company accounts and transactions have been eliminated in consolidation. See Note 2 of the Notes to Financial Statements. |
| * | Non-income producing security |
| ADR | American Depositary Receipts |
| % of | ||||||||
| Summary by Industry | Value | Net Assets | ||||||
| Diversified Telecommunication Services | $ | 1,172,333 | 28.2 | % | ||||
| Wireless Telecommunication Services | 2,963,285 | 71.4 | ||||||
| Total Investments | 4,135,618 | 99.6 | ||||||
| Other Assets in Excess of Liabilities | 17,151 | 0.4 | ||||||
| Net Assets | $ | 4,152,769 | 100.0 | % | ||||
The accompanying notes are an integral part of these financial statements.
52 EGA Emerging Global Shares Trust
Schedule of Investments (Consolidated)†
EGShares Utilities GEMS ETF
September 30, 2012 (Unaudited)
| Investments | Shares | Value | |
| COMMON STOCKS—100.0% | |||
| Brazil—28.1% | |||
| Centrais Eletricas Brasileiras SA ADR | 10,270 | $ | 60,901 |
| Companhia de Saneamento Basico do | |||
| Estado de Sao Paulo ADR | 1,622 | 131,722 | |
| Companhia Energetica de Minas Gerais ADR | 13,445 | 162,953 | |
| Companhia Paranaense de Energia-Copel | |||
| Preference Shares ADR | 3,260 | 53,529 | |
| CPFL Energia SA ADR | 3,296 | 72,215 | |
| Ultrapar Participacoes SA ADR | 11,074 | 247,061 | |
| Total Brazil | 728,381 | ||
| Chile—12.5% | |||
| Colbun SA* | 228,749 | 64,482 | |
| Empresa Nacional de Electricidad SA ADR | 3,055 | 146,518 | |
| Enersis SA ADR | 6,877 | 112,714 | |
| Total Chile | 323,714 | ||
| China—8.0% | |||
| China Resources Power Holdings Co., Ltd. | 47,420 | 103,852 | |
| Datang International Power Generation Co., Ltd. Class H | 96,300 | 32,418 | |
| Huaneng Power International, Inc. ADR | 2,410 | 72,131 | |
| Total China | 208,401 | ||
| Colombia—2.2% | |||
| Interconexion Electrica SA ESP | 10,492 | 55,463 | |
| Czech Republic—6.5% | |||
| CEZ AS | 4,538 | 169,104 | |
| Hong Kong—2.3% | |||
| Guangdong Investment, Ltd. | 75,764 | 59,902 | |
| India—13.4% | |||
| NTPC, Ltd. | 35,694 | 113,758 | |
| Petronet LNG, Ltd. | 6,651 | 19,917 | |
| Power Grid Corp. of India, Ltd. | 34,353 | 78,482 | |
| Reliance Infrastructure, Ltd. | 4,365 | 44,490 | |
| Rural Electrification Corp., Ltd. | 9,646 | 39,914 | |
| Tata Power Co., Ltd. | 25,089 | 50,873 | |
| Total India | 347,434 | ||
| Indonesia—4.8% | |||
| Perusahaan Gas Negara PT | 289,200 | 124,655 | |
| Malaysia—8.9% | |||
| Tenaga Nasional BHD | 62,900 | 140,350 | |
| YTL Corp. BHD | 109,040 | 61,360 | |
| YTL Power International BHD | 52,400 | 28,459 | |
| Total Malaysia | 230,169 | ||
| Investments | Shares | Value | |
| Philippines—3.6% | |||
| Aboitiz Power Corp. | 59,400 | $ | 47,773 |
| Manila Electric Co. | 7,600 | 46,458 | |
| Total Philippines | 94,231 | ||
| Poland—6.5% | |||
| PGE SA | 20,465 | 118,182 | |
| Tauron Polska Energia SA | 32,995 | 50,468 | |
| Total Poland | 168,650 | ||
| Russia—3.2% | |||
| Federal Hydrogenerating Co. JSC ADR | 31,257 | 83,144 | |
| TOTAL COMMON STOCKS | |||
| (Cost: $2,644,865) | 2,593,248 | ||
| RIGHTS—0.0% | |||
| Malaysia—0.0% | |||
| YTL Corp. BHD Class R, expiring 10/17/12* (Cost: $0) | 7,269 | — | |
| TOTAL INVESTMENTS IN SECURITIES—100.0% | |||
| (Cost: $2,644,865) | 2,593,248 | ||
| Other Assets in Excess of Liabilities—0.0%** | 261 | ||
| Net Assets—100.0% | $ | 2,593,509 | |
| † | The Consolidated Schedule of Investments includes the accounts of the wholly owned subsidiary. All inter-company accounts and transactions have been eliminated in consolidation. See Note 2 of the Notes to Financial Statements. |
| * | Non-income producing security |
| ** | Less than 0.05% |
| ADR | American Depositary Receipts |
| % of | ||||||||
| Summary by Industry | Value | Net Assets | ||||||
| Diversified Financial Services | $ | 39,914 | 1.5 | % | ||||
| Electric Utilities | 1,299,326 | 50.1 | ||||||
| Gas Utilities | 124,655 | 4.8 | ||||||
| Independent Power Producers & Energy Traders | 580,932 | 22.4 | ||||||
| Multi-Utilities | 89,819 | 3.5 | ||||||
| Oil, Gas & Consumable Fuels | 266,978 | 10.3 | ||||||
| Water Utilities | 191,624 | 7.4 | ||||||
| Total Investments | 2,593,248 | 100.0 | ||||||
| Other Assets in Excess of Liabilities | 261 | 0.0 | ** | |||||
| Net Assets | $ | 2,593,509 | 100.0 | % | ||||
| ** | Less than 0.05% | |
The accompanying notes are an integral part of these financial statements.
EGA Emerging Global Shares Trust 53
Statements of Assets and Liabilities
EGA Emerging Global Shares Trust
September 30, 2012 (Unaudited)
|
EGShares
Basic Materials GEMS ETF (Consolidated) |
EGShares
Beyond BRICs ETF |
EGShares
Brazil Infrastructure ETF |
EGShares
China Infrastructure ETF |
EGShares
Consumer Goods GEMS ETF (Consolidated) |
|||||||||||||||||||||||||||||
| ASSETS: | |||||||||||||||||||||||||||||||||
| Cost of Investments: | $ | 3,258,619 | $ | 7,039,850 | $ | 67,913,423 | $ | 13,396,369 | $ | 2,070,755 | |||||||||||||||||||||||
| Investments at value | 2,838,689 | 7,168,837 | 69,587,177 | 10,466,463 | 2,237,966 | ||||||||||||||||||||||||||||
| Cash | 19,925 | 16,681 | 458,352 | 41,809 | 9,965 | ||||||||||||||||||||||||||||
| Foreign cash* | 184 | 1,267 | 106,247 | — | 1,007 | ||||||||||||||||||||||||||||
| Receivables: | |||||||||||||||||||||||||||||||||
| Dividends and interest | 9,412 | 3,930 | 262,909 | 1,982 | 1,435 | ||||||||||||||||||||||||||||
| Due from sub-adviser | 9,505 | 4,237 | — | 6,994 | 11,716 | ||||||||||||||||||||||||||||
| Due from advisor | — | — | — | 1,337 | — | ||||||||||||||||||||||||||||
| Investment securities sold | 11,999 | — | — | — | — | ||||||||||||||||||||||||||||
| Prepaid offering expenses | 3,456 | — | — | — | 3,956 | ||||||||||||||||||||||||||||
| Prepaid expense and other assets | 3,947 | 7,322 | 1,274 | 1,407 | 6,411 | ||||||||||||||||||||||||||||
| Total Assets | 2,897,117 | 7,202,274 | 70,415,959 | 10,519,992 | 2,272,456 | ||||||||||||||||||||||||||||
| LIABILITIES: | |||||||||||||||||||||||||||||||||
| Payables: | |||||||||||||||||||||||||||||||||
| Accrued investment advisory fees | 227 | 663 | 5,893 | — | 1,768 | ||||||||||||||||||||||||||||
| Accrued sub-advisory fees | — | — | 15,676 | — | — | ||||||||||||||||||||||||||||
| Accrued trustee fees | 9 | 28 | 1,373 | 187 | 3 | ||||||||||||||||||||||||||||
| Due to custodian | — | — | — | — | — | ||||||||||||||||||||||||||||
| Foreign currency payable | — | — | — | — | — | ||||||||||||||||||||||||||||
| Income payable | — | — | — | — | — | ||||||||||||||||||||||||||||
| Investment securities purchased | 16,124 | — | — | — | — | ||||||||||||||||||||||||||||
| Accrued expenses and other liabilities | 34,735 | 5,683 | 84,235 | 41,855 | 39,825 | ||||||||||||||||||||||||||||
| Total Liabilities | 51,095 | 6,374 | 107,177 | 42,042 | 41,596 | ||||||||||||||||||||||||||||
| NET ASSETS | $ | 2,846,022 | $ | 7,195,900 | $ | 70,308,782 | $ | 10,477,950 | $ | 2,230,860 | |||||||||||||||||||||||
| NET ASSETS: | |||||||||||||||||||||||||||||||||
| Paid-in capital | $ | 3,348,942 | $ | 7,050,561 | $ | 77,603,041 | $ | 15,663,355 | $ | 2,066,552 | |||||||||||||||||||||||
| Undistributed (accumulated) net investment income (loss) | 54,785 | 16,456 | 2,079,478 | 182,206 | 16,947 | ||||||||||||||||||||||||||||
| Accumulated net realized loss on investments and foreign currency transactions | (138,359 | ) | (118 | ) | (11,035,897 | ) | (2,437,705 | ) | (19,903 | ) | |||||||||||||||||||||||
| Net unrealized appreciation (depreciation) on investments and on foreign currency translations | (419,346 | ) | 129,001 | 1,662,160 | (2,929,906 | ) | 167,264 | ||||||||||||||||||||||||||
| NET ASSETS | $ | 2,846,022 | $ | 7,195,900 | $ | 70,308,782 | $ | 10,477,950 | $ | 2,230,860 | |||||||||||||||||||||||
| Outstanding beneficial interest shares (unlimited shares of beneficial interest authorized, no par value) | 200,000 | 350,000 | 3,350,000 | 650,000 | 100,000 | ||||||||||||||||||||||||||||
| Net asset value per share | $ | 14.23 | $ | 20.56 | $ | 20.99 | $ | 16.12 | $ | 22.31 | |||||||||||||||||||||||
| * Cost of foreign cash: | $ | 77 | $ | 1,272 | $ | 111,993 | $ | 1,983 | $ | 968 | |||||||||||||||||||||||
The accompanying notes are an integral part of these financial statements.
54 and 55 EGA Emerging Global Shares Trust
Statements of Assets and Liabilities (concluded)
EGA Emerging Global Shares Trust
September 30, 2012 (Unaudited)
|
EGShares
GEMS Composite ETF (Consolidated) |
EGShares
Health Care GEMS ETF (Consolidated) |
EGShares
India Consumer ETF (Consolidated) |
EGShares
India Infrastructure ETF (Consolidated) |
|||||||||||||||||||||||||||
| ASSETS: | ||||||||||||||||||||||||||||||
| Cost of Investments: | $ | 14,633,129 | $ | 1,907,783 | $ | 1,836,174 | $ | 73,868,745 | ||||||||||||||||||||||
| Investments at value | 13,394,819 | 2,126,280 | 2,233,082 | 59,284,971 | ||||||||||||||||||||||||||
| Cash | 91,111 | 88,365 | 10,899 | 116,181 | ||||||||||||||||||||||||||
| Foreign cash* | 10,698 | 856 | 33 | 46,096 | ||||||||||||||||||||||||||
| Receivables: | ||||||||||||||||||||||||||||||
| Dividends and interest | 25,072 | — | 1,228 | 103,862 | ||||||||||||||||||||||||||
| Due from sub-adviser | 25,342 | 7,811 | 5,774 | — | ||||||||||||||||||||||||||
| Due from advisor | — | — | — | — | ||||||||||||||||||||||||||
| Investment securities sold | — | — | — | — | ||||||||||||||||||||||||||
| Prepaid offering expenses | — | 3,706 | — | — | ||||||||||||||||||||||||||
| Prepaid expense and other assets | 2,449 | 4,175 | 1,283 | 8,051 | ||||||||||||||||||||||||||
| Total Assets | 13,549,491 | 2,231,193 | 2,252,299 | 59,559,161 | ||||||||||||||||||||||||||
| LIABILITIES: | ||||||||||||||||||||||||||||||
| Payables: | ||||||||||||||||||||||||||||||
| Accrued investment advisory fees | 1,092 | 169 | — | 4,420 | ||||||||||||||||||||||||||
| Accrued sub-advisory fees | — | — | — | 27,691 | ||||||||||||||||||||||||||
| Accrued trustee fees | 196 | 25 | 35 | 875 | ||||||||||||||||||||||||||
| Due to custodian | — | — | — | — | ||||||||||||||||||||||||||
| Foreign currency payable | — | — | — | — | ||||||||||||||||||||||||||
| Income payable | — | — | — | — | ||||||||||||||||||||||||||
| Investment securities purchased | 43,157 | 81,555 | — | — | ||||||||||||||||||||||||||
| Accrued expenses and other liabilities | 53,849 | 35,795 | 44,574 | 74,884 | ||||||||||||||||||||||||||
| Total Liabilities | 98,294 | 117,544 | 44,609 | 107,870 | ||||||||||||||||||||||||||
| NET ASSETS | $ | 13,451,197 | $ | 2,113,649 | $ | 2,207,690 | $ | 59,451,291 | ||||||||||||||||||||||
| NET ASSETS: | ||||||||||||||||||||||||||||||
| Paid-in capital | $ | 16,095,612 | $ | 1,934,573 | $ | 1,837,345 | $ | 87,185,917 | ||||||||||||||||||||||
| Undistributed (accumulated) net investment income (loss) | 196,175 | 8,699 | 8,868 | 384,405 | ||||||||||||||||||||||||||
| Accumulated net realized loss on investments and foreign currency transactions | (1,601,837 | ) | (48,606 | ) | (35,472 | ) | (13,540,950 | ) | ||||||||||||||||||||||
| Net unrealized appreciation (depreciation) on investments and on foreign currency translations | (1,238,753 | ) | 218,983 | 396,949 | (14,578,081 | ) | ||||||||||||||||||||||||
| NET ASSETS | $ | 13,451,197 | $ | 2,113,649 | $ | 2,207,690 | $ | 59,451,291 | ||||||||||||||||||||||
| Outstanding beneficial interest shares (unlimited shares of beneficial interest authorized, no par value) | 600,000 | 100,000 | 100,000 | 4,050,000 | ||||||||||||||||||||||||||
| Net asset value per share | $ | 22.42 | $ | 21.14 | $ | 22.08 | $ | 14.68 | ||||||||||||||||||||||
| * Cost of foreign cash: | $ | 10,674 | $ | 830 | $ | 30 | $ | 45,435 | ||||||||||||||||||||||
|
EGShares
India Small Cap ETF (Consolidated) |
EGShares
Industrials GEMS ETF (Consolidated) |
EGShares
Low Volatility Emerging Markets Dividend ETF (Consolidated) |
EGShares
Technology GEMS ETF (Consolidated) |
EGShares
Telecom GEMS ETF (Consolidated) |
EGShares
Utilities GEMS ETF (Consolidated) |
|||||||||||||||||||||||||
| ASSETS: | ||||||||||||||||||||||||||||||
| Cost of Investments: | $ | 24,681,695 | $ | 2,731,072 | $ | 82,185,188 | $ | 1,832,064 | $ | 4,044,032 | $ | 2,644,865 | ||||||||||||||||||
| Investments at value | 24,673,730 | 2,818,840 | 81,674,960 | 1,817,185 | 4,135,618 | 2,593,248 | ||||||||||||||||||||||||
| Cash | 72,397 | 11,220 | — | 8,734 | 7,424 | 12,312 | ||||||||||||||||||||||||
| Foreign cash* | 43,099 | 285 | 987 | 586 | 12,479 | 11,136 | ||||||||||||||||||||||||
| Receivables: | ||||||||||||||||||||||||||||||
| Dividends and interest | 13,864 | 4,759 | 310,664 | 90 | 16,171 | 8,856 | ||||||||||||||||||||||||
| Due from sub-adviser | — | 10,037 | — | 20,859 | 8,974 | 8,582 | ||||||||||||||||||||||||
| Due from advisor | — | — | — | — | — | — | ||||||||||||||||||||||||
| Investment securities sold | — | — | 12,654 | — | — | — | ||||||||||||||||||||||||
| Prepaid offering expenses | — | 3,706 | 2,667 | 3,706 | 3,706 | 3,706 | ||||||||||||||||||||||||
| Prepaid expense and other assets | 10,466 | 4,255 | 5,651 | 4,172 | 4,882 | 4,329 | ||||||||||||||||||||||||
| Total Assets | 24,813,556 | 2,853,102 | 82,007,583 | 1,855,332 | 4,189,254 | 2,642,169 | ||||||||||||||||||||||||
| LIABILITIES: | ||||||||||||||||||||||||||||||
| Payables: | ||||||||||||||||||||||||||||||
| Accrued investment advisory fees | 3,446 | 220 | 4,587 | 8,829 | 541 | 659 | ||||||||||||||||||||||||
| Accrued sub-advisory fees | 25,923 | — | 27,572 | — | — | — | ||||||||||||||||||||||||
| Accrued trustee fees | 394 | 15 | 665 | 29 | 30 | 39 | ||||||||||||||||||||||||
| Due to custodian | — | — | 107,588 | — | — | — | ||||||||||||||||||||||||
| Foreign currency payable | — | — | — | — | — | 11,069 | ||||||||||||||||||||||||
| Income payable | — | — | 834,028 | — | — | — | ||||||||||||||||||||||||
| Investment securities purchased | — | — | — | — | — | — | ||||||||||||||||||||||||
| Accrued expenses and other liabilities | 59,673 | 36,678 | 57,128 | 40,136 | 35,914 | 36,893 | ||||||||||||||||||||||||
| Total Liabilities | 89,436 | 36,913 | 1,031,568 | 48,994 | 36,485 | 48,660 | ||||||||||||||||||||||||
| NET ASSETS | $ | 24,724,120 | $ | 2,816,189 | $ | 80,976,015 | $ | 1,806,338 | $ | 4,152,769 | $ | 2,593,509 | ||||||||||||||||||
| NET ASSETS: | ||||||||||||||||||||||||||||||
| Paid-in capital | $ | 38,105,717 | $ | 2,937,491 | $ | 84,253,314 | $ | 1,945,451 | $ | 3,990,242 | $ | 2,700,563 | ||||||||||||||||||
| Undistributed (accumulated) net investment income (loss) | 107,153 | 20,080 | (6,716 | ) | 14,831 | 116,127 | 58,078 | |||||||||||||||||||||||
| Accumulated net realized loss on investments and foreign currency transactions | (13,483,150 | ) | (229,217 | ) | (2,760,181 | ) | (139,100 | ) | (45,221 | ) | (113,591 | ) | ||||||||||||||||||
| Net unrealized appreciation (depreciation) on investments and on foreign currency translations | (5,600 | ) | 87,835 | (510,402 | ) | (14,844 | ) | 91,621 | (51,541 | ) | ||||||||||||||||||||
| NET ASSETS | $ | 24,724,120 | $ | 2,816,189 | $ | 80,976,015 | $ | 1,806,338 | $ | 4,152,769 | $ | 2,593,509 | ||||||||||||||||||
| Outstanding beneficial interest shares (unlimited shares of beneficial interest authorized, no par value) | 1,700,000 | 150,000 | 4,300,000 | 100,000 | 200,000 | 150,000 | ||||||||||||||||||||||||
| Net asset value per share | $ | 14.54 | $ | 18.77 | $ | 18.83 | $ | 18.06 | $ | 20.76 | $ | 17.29 | ||||||||||||||||||
| * Cost of foreign cash: | $ | 41,289 | $ | 277 | $ | 1,670 | $ | 553 | $ | 12,359 | $ | 11,132 | ||||||||||||||||||
The accompanying notes are an integral part of these financial statements.
56 and 57 EGA Emerging Global Shares Trust
EGA Emerging Global Shares Trust
Period Ended September 30, 2012 (Unaudited)
| 1 | Represents the period August 15, 2012 (commencement of operations) to September 30, 2012. |
| 1 | Represents the period August 15, 2012 (commencement of operations) to September 30, 2012. |
The accompanying notes are an integral part of these financial statements.
58 and 59 EGA Emerging Global Shares Trust
Statements of Operations (concluded)
EGA Emerging Global Shares Trust
Period Ended September 30, 2012 (Unaudited)
| 1 | Represents the period August 15, 2012 (commencement of operations) to September 30, 2012. |
| 1 | Represents the period August 15, 2012 (commencement of operations) to September 30, 2012. |
The accompanying notes are an integral part of these financial statements.
60 and 61 EGA Emerging Global Shares Trust
Statements of Changes in Net Assets
EGA Emerging Global Shares Trust
|
EGShares Basic Materials GEMS ETF
(Consolidated) |
EGShares Beyond
BRICs ETF |
EGShares Brazil Infrastructure ETF | |||||||||||||||||||||||||||||||||||||
|
For the Period
April 1, 2012 Through September 30, 2012 (Unaudited) |
For the Period
June 23, 2011 1 Through March 31, 2012 |
For the Period
August 15, 2012 1 Through September 30, 2012 (Unaudited) |
For the Period
April 1, 2012 Through September 30, 2012 (Unaudited) |
For the
Year Ended March 31, 2012 |
|||||||||||||||||||||||||||||||||||
| INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS: | |||||||||||||||||||||||||||||||||||||||
| Net investment income (loss) | $ | 50,285 | $ | 20,941 | $ | 16,456 | $ | 1,252,519 | $ | 3,266,422 | |||||||||||||||||||||||||||||
| Net realized gain (loss) on investments and foreign currency transactions | (102,697 | ) | (97,898 | ) | (118 | ) | (4,351,079 | ) | (6,144,370 | ) | |||||||||||||||||||||||||||||
| Net unrealized appreciation (depreciation) on investments and foreign currency translations | (158,858 | ) | (260,488 | ) | 129,001 | (8,471,506 | ) | 331,770 | |||||||||||||||||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | (211,270 | ) | (337,445 | ) | 145,339 | (11,570,066 | ) | (2,546,178 | ) | ||||||||||||||||||||||||||||||
| DISTRIBUTIONS TO SHAREHOLDERS: | |||||||||||||||||||||||||||||||||||||||
| Net investment income | — | (15,017 | ) | — | — | (3,135,584 | ) | ||||||||||||||||||||||||||||||||
| CAPITAL SHARE TRANSACTIONS: | |||||||||||||||||||||||||||||||||||||||
| Proceeds from sale of shares | 2,159,099 | 2,870,607 | 7,054,554 | 60,616 | 22,319,521 | ||||||||||||||||||||||||||||||||||
| Cost of shares redeemed | (691,497 | ) | (927,874 | ) | (3,993 | ) | (7,772,519 | ) | (10,807,230 | ) | |||||||||||||||||||||||||||||
| Transaction fees | (310 | ) | (271 | ) | — | — | — | ||||||||||||||||||||||||||||||||
| Net increase (decrease) in net assets resulting from capital share transactions | 1,467,292 | 1,942,462 | 7,050,561 | (7,711,903 | ) | 11,512,291 | |||||||||||||||||||||||||||||||||
| Net Increase (Decrease) in Net Assets | 1,256,022 | 1,590,000 | 7,195,900 | (19,281,969 | ) | 5,830,529 | |||||||||||||||||||||||||||||||||
| NET ASSETS: | |||||||||||||||||||||||||||||||||||||||
| Beginning of period | 1,590,000 | — | — | 89,590,751 | 83,760,222 | ||||||||||||||||||||||||||||||||||
| End of period | $ | 2,846,022 | $ | 1,590,000 | $ | 7,195,900 | $ | 70,308,782 | $ | 89,590,751 | |||||||||||||||||||||||||||||
| Accumulated net investment income (loss) included in net assets at end of period | $ | 54,785 | $ | 4,500 | $ | 16,572 | $ | 2,079,477 | $ | 826,959 | |||||||||||||||||||||||||||||
| SHARES CREATED AND REDEEMED: | |||||||||||||||||||||||||||||||||||||||
| Shares outstanding, beginning of period | 100,000 | — | — | 3,700,000 | 3,300,000 | ||||||||||||||||||||||||||||||||||
| Shares sold | 150,000 | 150,000 | 350,000 | — | 900,000 | ||||||||||||||||||||||||||||||||||
| Shares redeemed | (50,000 | ) | (50,000 | ) | — | (350,000 | ) | (500,000 | ) | ||||||||||||||||||||||||||||||
| Shares outstanding, end of period | 200,000 | 100,000 | 350,000 | 3,350,000 | 3,700,000 | ||||||||||||||||||||||||||||||||||
| 1 | Commencement of operations. |
The accompanying notes are an integral part of these financial statements.
62 and 63 EGA Emerging Global Shares Trust
Statements of Changes in Net Assets (continued)
EGA Emerging Global Shares Trust
| 1 | Commencement of operations. |
The accompanying notes are an integral part of these financial statements.
64 and 65 EGA Emerging Global Shares Trust
Statements of Changes in Net Assets (concluded)
EGA Emerging Global Shares Trust
|
EGShares Low Volatility Emerging
Markets Dividend ETF (Consolidated) |
EGShares Technology GEMS ETF
(Consolidated) |
EGShares Telecom GEMS ETF
(Consolidated) |
EGShares Utilities GEMS ETF
(Consolidated) |
|||||||||||||||||||||||||||||||||||||||||
|
For the Period
April 1, 2012 Through September 30, 2012 (Unaudited) |
For the Period
August 4, 2011 1 Through March 31, 2012 |
For the Period
April 1, 2012 Through September 30, 2012 (Unaudited) |
For the Period
June 23, 2011 1 Through March 31, 2012 |
For the Period
April 1, 2012 Through September 30, 2012 (Unaudited) |
For the Period
June 23, 2011 1 Through March 31, 2012 |
For the Period
April 1, 2012 Through September 30, 2012 (Unaudited) |
For the Period
June 23, 2011 1 Through March 31, 2012 |
|||||||||||||||||||||||||||||||||||||
| INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||||||||||||||||||||||
| RESULTING FROM OPERATIONS: | ||||||||||||||||||||||||||||||||||||||||||||
| Net investment income (loss) | $ | 1,988,002 | $ | 406,885 | $ | 14,831 | $ | (1,383 | ) | $ | 100,885 | $ | 27,898 | $ | 49,684 | $ | 21,831 | |||||||||||||||||||||||||||
| Net realized gain (loss) on investments and foreign currency transactions | (2,291,874 | ) | 960,495 | (78,864 | ) | (119,001 | ) | (34,404 | ) | (31,392 | ) | (64,655 | ) | (137,595 | ) | |||||||||||||||||||||||||||||
| Net unrealized appreciation (depreciation) on investments and foreign currency translations | (1,739,721 | ) | 1,229,319 | (17,545 | ) | 2,701 | 68,361 | 23,260 | (179,261 | ) | 127,720 | |||||||||||||||||||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | (2,043,593 | ) | 2,596,699 | (81,578 | ) | (117,683 | ) | 134,842 | 19,766 | (194,232 | ) | 11,956 | ||||||||||||||||||||||||||||||||
| DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||||||||||||||||||||||||||||||||||||||
| Net investment income | (1,634,021 | ) | (659,822 | ) | — | — | — | (10,536 | ) | — | (9,988 | ) | ||||||||||||||||||||||||||||||||
| CAPITAL SHARE TRANSACTIONS: | ||||||||||||||||||||||||||||||||||||||||||||
| Proceeds from sale of shares | 52,101,267 | 72,180,393 | 834,485 | 4,651,039 | 2,942,863 | 5,902,467 | 846,324 | 3,672,180 | ||||||||||||||||||||||||||||||||||||
| Cost of shares redeemed | (26,702,535 | ) | (14,863,146 | ) | (834,485 | ) | (2,644,489 | ) | (1,956,429 | ) | (2,879,951 | ) | (846,324 | ) | (885,693 | ) | ||||||||||||||||||||||||||||
| Transaction fees | (8 | ) | 781 | (484 | ) | (467 | ) | (180 | ) | (73 | ) | (394 | ) | (320 | ) | |||||||||||||||||||||||||||||
| Net increase (decrease) in net assets resulting from capital share transactions | 25,398,724 | 57,318,028 | (484 | ) | 2,006,083 | 986,254 | 3,022,443 | (394 | ) | 2,786,167 | ||||||||||||||||||||||||||||||||||
| Net Increase (Decrease) in Net Assets | 21,721,110 | 59,254,905 | (82,062 | ) | 1,888,400 | 1,121,096 | 3,031,673 | (194,626 | ) | 2,788,135 | ||||||||||||||||||||||||||||||||||
| NET ASSETS: | ||||||||||||||||||||||||||||||||||||||||||||
| Beginning of period | 59,254,905 | — | 1,888,400 | — | 3,031,673 | — | 2,788,135 | — | ||||||||||||||||||||||||||||||||||||
| End of period | $ | 80,976,015 | $ | 59,254,905 | $ | 1,806,338 | $ | 1,888,400 | $ | 4,152,769 | $ | 3,031,673 | $ | 2,593,509 | $ | 2,788,135 | ||||||||||||||||||||||||||||
| Accumulated net investment income (loss) included in net assets at end of period | $ | (6,716 | ) | $ | (360,697 | ) | $ | 14,831 | $ | — | $ | 116,127 | $ | 15,242 | $ | — | $ | 8,394 | ||||||||||||||||||||||||||
| SHARES CREATED AND REDEEMED: | ||||||||||||||||||||||||||||||||||||||||||||
| Shares outstanding, beginning of period | 2,950,000 | — | 100,000 | — | 150,000 | — | 150,000 | — | ||||||||||||||||||||||||||||||||||||
| Shares sold | 2,750,000 | 3,700,000 | 50,000 | 250,000 | 150,000 | 300,000 | 50,000 | 200,000 | ||||||||||||||||||||||||||||||||||||
| Shares redeemed | (1,400,000 | ) | (750,000 | ) | (50,000 | ) | (150,000 | ) | (100,000 | ) | (150,000 | ) | (50,000 | ) | (50,000 | ) | ||||||||||||||||||||||||||||
| Shares outstanding, end of period | 4,300,000 | 2,950,000 | 100,000 | 100,000 | 200,000 | 150,000 | 150,000 | 150,000 | ||||||||||||||||||||||||||||||||||||
| 1 | Commencement of operations. |
The accompanying notes are an integral part of these financial statements.
66 and 67 EGA Emerging Global Shares Trust
EGA Emerging Global Shares Trust
For a share outstanding throughout each period
EGShares Basic Materials GEMS ETF (Consolidated)
|
For the Period
April 1, 2012 Through September 30, 2012 (Unaudited) |
||||||
|
For the Period
June 23, 2011 1 Through March 31, 2012 |
||||||
| Net asset value, beginning of period | $ | 15.90 | $ | 20.00 | ||
| Investment operations: | ||||||
| Net investment income (loss) 2 | 0.29 | 0.31 | ||||
| Net realized and unrealized gain (loss) on investments and foreign currency translations | (1.96 | ) | (4.11 | ) | ||
| Total from investment operations | (1.67 | ) | (3.80 | ) | ||
| Distributions to shareholders: | ||||||
| Net investment income | — | (0.30 | ) | |||
| Net asset value, end of period | $ | 14.23 | $ | 15.90 | ||
| NET ASSET VALUE TOTAL RETURN 3 | (10.50 | )% | (18.87 | )% | ||
| RATIOS/SUPPLEMENTAL DATA: | ||||||
| Net assets, end of period (000’s omitted) | $ | 2,846 | $ | 1,590 | ||
| Ratios to average net assets: | ||||||
| Expenses, net of expense reimbursements/waivers | 0.85 | % 4 | 0.85 | % 4 | ||
| Expenses, prior to expense reimbursements/waivers | 5.54 | % 4 | 7.99 | % 4 | ||
| Net investment income (loss) | 4.15 | % 4 | 2.30 | % 4 | ||
| Portfolio turnover rate | 13 | % 5 | 21 | % 5 | ||
EGShares Beyond BRICs ETF (Consolidated)
|
For the Period
August 15, 2012 1 Through September 30, 2012 (Unaudited) |
|||
| Net asset value, beginning of period | $ | 20.00 | |
| Investment operations: | |||
| Net investment income (loss) 2 | 0.06 | ||
| Net realized and unrealized gain (loss) on investments and foreign currency translations | 0.50 | ||
| Total from investment operations | 0.56 | ||
| Distributions to shareholders: | |||
| Net investment income | — | ||
| Net asset value, end of period | $ | 20.56 | |
| NET ASSET VALUE TOTAL RETURN 3 | 2.80 | % | |
| RATIOS/SUPPLEMENTAL DATA: | |||
| Net assets, end of period (000’s omitted) | $ | 7,196 | |
| Ratios to average net assets: | |||
| Expenses, net of expense reimbursements/waivers | 0.85 | % 4 | |
| Expenses, prior to expense reimbursements/waivers | 2.64 | % 4 | |
| Net investment income (loss) | 2.42 | % 4 | |
| Portfolio turnover rate | 1 | % 5 | |
| 1 | Commencement of operations. |
| 2 | Based on average shares outstanding. |
| 3 | Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Total return calculated for a period of less than one year is not annualized. The total return would have been lower if certain expenses had not been reimbursed/waived by the sub-adviser. |
| 4 | Annualized. |
| 5 | Not annualized. |
The accompanying notes are an integral part of these financial statements.
68 EGA Emerging Global Shares Trust
Financial Highlights (continued)
EGA Emerging Global Shares Trust
For a share outstanding throughout each period
EGShares Brazil Infrastructure ETF
EGShares China Infrastructure ETF
| 1 | Commencement of operations. |
| 2 | Based on average shares outstanding. |
| 3 | Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Total return calculated for a period of less than one year is not annualized. The total return would have been lower if certain expenses had not been reimbursed/waived by the sub-adviser. |
| 4 | Annualized. |
| 5 | The ratio includes 0.03% for the period ended March 31, 2012 attributed to excise tax expense, which is outside the cap expense. |
| 6 | Not annualized. |
| 7 | The realized and unrealized gain on investments and foreign currency transactions does not accord with the amounts reported in the Statement of Operations due to the timing of subscriptions and/or redemptions of fund shares in relation to the investment performance during the period and contributions made by Authorized Participants to compensate the Fund for additional costs incurred in purchasing securities that were not transferred in kind (See Note 10) |
The accompanying notes are an integral part of these financial statements.
EGA Emerging Global Shares Trust 69
Financial Highlights (continued)
EGA Emerging Global Shares Trust
For a share outstanding throughout each period
EGShares Consumer Goods GEMS ETF (Consolidated)
|
For the Period
April 1, 2012 Through September 30, 2012 (Unaudited) |
||||||
|
For the Period
June 23, 2011 1 Through March 31, 2012 |
||||||
| Net asset value, beginning of period | $ | 22.08 | $ | 20.00 | ||
| Investment operations: | ||||||
| Net investment income (loss) 2 | 0.18 | 0.23 | ||||
| Net realized and unrealized gain (loss) on investments and foreign currency translations | 0.05 | 2.07 | ||||
| Total from investment operations | 0.23 | 2.30 | ||||
| Distributions to shareholders: | ||||||
| Net investment income | — | (0.22 | ) | |||
| Net asset value, end of period | $ | 22.31 | $ | 22.08 | ||
| NET ASSET VALUE TOTAL RETURN 3 | 1.04 | % | 11.62 | % | ||
| RATIOS/SUPPLEMENTAL DATA: | ||||||
| Net assets, end of period (000’s omitted) | $ | 2,231 | $ | 1,104 | ||
| Ratios to average net assets: | ||||||
| Expenses, net of expense reimbursements/waivers | 0.85 | % 4 | 0.85 | % 4 | ||
| Expenses, prior to expense reimbursements/waivers | 8.91 | % 4 | 8.77 | % 4 | ||
| Net investment income (loss) | 1.70 | % 4 | 1.45 | % 4 | ||
| Portfolio turnover rate | 8 | % 5 | 50 | % 5 | ||
EGShares Consumer Services GEMS ETF
|
For the Period
April 1, 2012 Through September 30, 2012 (Unaudited) |
||||||
|
For the Period
June 23, 2011 1 Through March 31, 2012 |
||||||
| Net asset value, beginning of period | $ | 20.87 | $ | 20.00 | ||
| Investment operations: | ||||||
| Net investment income (loss) 2 | 0.10 | (0.03 | ) | |||
| Net realized and unrealized gain (loss) on investments and foreign currency translations | (0.84 | ) | 0.92 | |||
| Total from investment operations | (0.74 | ) | 0.89 | |||
| Distributions to shareholders: | ||||||
| Net investment income | — | (0.02 | ) | |||
| Net asset value, end of period | $ | 20.13 | $ | 20.87 | ||
| NET ASSET VALUE TOTAL RETURN 3 | (3.55 | )% | 4.49 | % | ||
| RATIOS/SUPPLEMENTAL DATA: | ||||||
| Net assets, end of period (000’s omitted) | $ | 2,013 | $ | 1,044 | ||
| Ratios to average net assets: | ||||||
| Expenses, net of expense reimbursements/waivers | 0.85 | % 4 | 0.85 | % 4 | ||
| Expenses, prior to expense reimbursements/waivers | 6.60 | % 4 | 6.77 | % 4 | ||
| Net investment income (loss) | 1.04 | % 4 | (0.18 | )% 4 | ||
| Portfolio turnover rate | 23 | % 5 | 51 | % 5 | ||
| 1 | Commencement of operations. |
| 2 | Based on average shares outstanding. |
| 3 | Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Total return calculated for a period of less than one year is not annualized. The total return would have been lower if certain expenses had not been reimbursed/waived by the sub-adviser. |
| 4 | Annualized. |
| 5 | Not annualized. |
The accompanying notes are an integral part of these financial statements.
70 EGA Emerging Global Shares Trust
Financial Highlights (continued)
EGA Emerging Global Shares Trust
For a share outstanding throughout each period
EGShares Emerging Markets Consumer ETF (Consolidated)
|
For the Period
April 1, 2012 Through September 30, 2012 (Unaudited) |
|||||||||
|
For the Period
September 14, 2010 1 Through March 31, 2011 |
|||||||||
|
For the
Year Ended March 31, 2012 |
|||||||||
| Net asset value, beginning of period | $ | 24.77 | $ | 22.76 | $ | 20.00 | |||
| Investment operations: | |||||||||
| Net investment income (loss) 2 | 0.13 | 0.17 | 0.04 | ||||||
| Net realized and unrealized gain (loss) on investments and foreign currency translations | (0.49 | ) | 1.96 | 2.74 | |||||
| Total from investment operations | (0.36 | ) | 2.13 | 2.78 | |||||
| Distributions to shareholders: | |||||||||
| Net investment income | — | (0.12 | ) | (0.02 | ) | ||||
| Net asset value, end of period | $ | 24.41 | $ | 24.77 | $ | 22.76 | |||
| NET ASSET VALUE TOTAL RETURN 3 | (1.45 | )% | 9.44 | % | 13.88 | % | |||
| RATIOS/SUPPLEMENTAL DATA: | |||||||||
| Net assets, end of period (000’s omitted) | $ | 450,445 | $ | 402,466 | $ | 194,611 | |||
| Ratios to average net assets: | |||||||||
| Expenses, net of expense reimbursements/waivers | 0.85 | % 4 | 0.85 | % | 0.85 | % 4 | |||
| Expenses, prior to expense reimbursements/waivers | 1.29 | % 4 | 1.31 | % | 1.44 | % 4 | |||
| Net investment income (loss) | 1.08 | % 4 | 0.76 | % | 0.37 | % 4 | |||
| Portfolio turnover rate | 18 | % 5 | 3 | % | 9 | % 5 | |||
EGShares Emerging Markets Domestic Demand ETF (Consolidated)
|
For the Period
August 15, 2012 1 Through September 30, 2012 (Unaudited) |
|||
| Net asset value, beginning of period | $ | 20.00 | |
| Investment operations: | |||
| Net investment income (loss) 2 | 0.05 | ||
| Net realized and unrealized gain (loss) on investments and foreign currency translations | 0.49 | ||
| Total from investment operations | 0.54 | ||
| Distributions to shareholders: | |||
| Net investment income | — | ||
| Net asset value, end of period | $ | 20.54 | |
| NET ASSET VALUE TOTAL RETURN 3 | 2.70 | % | |
| RATIOS/SUPPLEMENTAL DATA: | |||
| Net assets, end of period (000’s omitted) | $ | 5,135 | |
| Ratios to average net assets: | |||
| Expenses, net of expense reimbursements/waivers | 0.85 | % 4 | |
| Expenses, prior to expense reimbursements/waivers | 3.30 | % 4 | |
| Net investment income (loss) | 1.79 | % 4 | |
| Portfolio turnover rate | 1 | % 5 | |
| 1 | Commencement of operations. |
| 2 | Based on average shares outstanding. |
| 3 | Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Total return calculated for a period of less than one year is not annualized. The total return would have been lower if certain expenses had not been reimbursed/waived by the sub-adviser. |
| 4 | Annualized. |
| 5 | Not annualized. |
The accompanying notes are an integral part of these financial statements.
EGA Emerging Global Shares Trust 71
Financial Highlights (continued)
EGA Emerging Global Shares Trust
For a share outstanding throughout each period
EGShares Emerging Markets Metals & Mining ETF (Consolidated) 1
EGShares Energy GEMS ETF (Consolidated) 2
| 1 | On September 16, 2010, there was a 3 for 1 forward stock split. Historical shares amounts have been adjusted to reflect the 3 for 1 forward split on a retroactive basis. |
| 2 | On September 16, 2010, there was a 2 for 1 stock split. Historical share amounts have been adjusted to reflect the 2 for 1 stock split on a retroactive basis. |
| 3 | Commencement of operations. |
| 4 | Based on average shares outstanding. |
| 5 | Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Total return calculated for a period of less than one year is not annualized. The total return would have been lower if certain expenses had not been reimbursed/waived by the sub-adviser. |
| 6 | For the period ended March 31, 2010, 0.73% of the Fund’s total return consists of a voluntary reimbursement by the current and former sub-advisers for a realized investment loss, and another (1.08)% consists of a loss on an investment not meeting the Fund’s investment restrictions. Excluding these items, total return would have been 17.88%. |
| 7 | Annualized. |
| 8 | Not annualized. |
The accompanying notes are an integral part of these financial statements.
72 EGA Emerging Global Shares Trust
Financial Highlights (continued)
EGA Emerging Global Shares Trust
For a share outstanding throughout each period
EGShares Financials GEMS ETF (Consolidated) 1
EGShares GEMS Composite ETF (Consolidated) 1
| 1 | On September 16, 2010, there was a 2 for 1 stock split. Historical share amounts have been adjusted to reflect the 2 for 1 stock split on a retroactive basis. |
| 2 | Commencement of operations. |
| 3 | Based on average shares outstanding. |
| 4 | Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Total return calculated for a period of less than one year is not annualized. The total return would have been lower if certain expenses had not been reimbursed/waived by the sub-adviser. |
| 5 | Annualized. |
| 6 | Not annualized. |
The accompanying notes are an integral part of these financial statements.
EGA Emerging Global Shares Trust 73
Financial Highlights (continued)
EGA Emerging Global Shares Trust
For a share outstanding throughout each period
EGShares Health Care GEMS ETF (Consolidated)
|
For the Period
April 1, 2012 Through September 30, 2012 (Unaudited) |
||||||
|
For the Period
June 23, 2011 1 Through March 31, 2012 |
||||||
| Net asset value, beginning of period | $ | 19.09 | $ | 20.00 | ||
| Investment operations: | ||||||
| Net investment income (loss) 2 | 0.07 | 0.03 | ||||
| Net realized and unrealized gain (loss) on investments and foreign currency translations | 1.98 | (0.90 | ) | |||
| Total from investment operations | 2.05 | (0.87 | ) | |||
| Distributions to shareholders: | ||||||
| Net investment income | — | (0.04 | ) | |||
| Net asset value, end of period | $ | 21.14 | $ | 19.09 | ||
| NET ASSET VALUE TOTAL RETURN 5 | 10.74 | % | (4.33 | )% | ||
| RATIOS/SUPPLEMENTAL DATA: | ||||||
| Net assets, end of period (000’s omitted) | $ | 2,114 | $ | 1,909 | ||
| Ratios to average net assets: | ||||||
| Expenses, net of expense reimbursements/waivers | 0.85 | % 6 | 0.85 | % 6 | ||
| Expenses, prior to expense reimbursements/waivers | 6.83 | % 6 | 7.79 | % 6 | ||
| Net investment income (loss) | 0.68 | % 6 | 0.23 | % 6 | ||
| Portfolio turnover rate | 9 | % 7 | 26 | % 7 | ||
EGShares India Consumer ETF (Consolidated)
|
For the Period
April 1, 2012 Through September 30, 2012 (Unaudited) |
||||||
|
For the Period
August 10, 2011 1 Through March 31, 2012 |
||||||
| Net asset value, beginning of period | $ | 19.08 | $ | 20.00 | ||
| Investment operations: | ||||||
| Net investment income (loss) 2 | 0.10 | — 3 | ||||
| Net realized and unrealized gain (loss) on investments and foreign currency translations | 2.90 | (0.92 | ) 4 | |||
| Total from investment operations | 3.00 | (0.92 | ) | |||
| Distributions to shareholders: | ||||||
| Net investment income | — | — | ||||
| Net asset value, end of period | $ | 22.08 | $ | 19.08 | ||
| NET ASSET VALUE TOTAL RETURN 5 | 15.72 | % | (4.60 | )% | ||
| RATIOS/SUPPLEMENTAL DATA: | ||||||
| Net assets, end of period (000’s omitted) | $ | 2,208 | $ | 1,908 | ||
| Ratios to average net assets: | ||||||
| Expenses, net of expense reimbursements/waivers | 0.89 | % 6 | 0.89 | % 6 | ||
| Expenses, prior to expense reimbursements/waivers | 7.65 | % 6 | 6.16 | % 6 | ||
| Net investment income (loss) | 1.04 | % 6 | (0.04 | )% 6 | ||
| Portfolio turnover rate | 1 | % 7 | 104 | % 7 | ||
| 1 | Commencement of operations. |
| 2 | Based on average shares outstanding. |
| 3 | Greater than $(0.005). |
| 4 | The realized and unrealized gain on investments and foreign currency transactions does not accord with the amounts reported in the Statement of Operations due to the timing of subscriptions of fund shares in relation to the investment performance during the period and contributions made by Authorized Participants to compensate the Fund for additional costs incurred in purchasing securities that were not transferred in kind (See Note 10). |
| 5 | Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Total return calculated for a period of less than one year is not annualized. The total return would have been lower if certain expenses had not been reimbursed/waived by the sub-adviser. |
| 6 | Annualized. |
| 7 | Not annualized. |
The accompanying notes are an integral part of these financial statements.
74 EGA Emerging Global Shares Trust
Financial Highlights (continued)
EGA Emerging Global Shares Trust
For a share outstanding throughout each period
EGShares India Infrastructure ETF (Consolidated)
|
For the Period
April 1, 2012 Through September 30, 2012 (Unaudited) |
|||||||||
|
For the Period
August 11, 2010 1 Through March 31, 2011 |
|||||||||
|
For the
Year Ended March 31, 2012 |
|||||||||
| Net asset value, beginning of period | $ | 14.99 | $ | 19.40 | $ | 20.00 | |||
| Investment operations: | |||||||||
| Net investment income (loss) 2 | 0.07 | 0.06 | 0.01 | ||||||
| Net realized and unrealized gain (loss) on investments and foreign currency translations | (0.38 | ) | (4.39 | ) | (0.61 | ) | |||
| Total from investment operations | (0.31 | ) | (4.33 | ) | (0.60 | ) | |||
| Distributions to shareholders: | |||||||||
| Net investment income | — | (0.08 | ) | — | |||||
| Net asset value, end of period | $ | 14.68 | $ | 14.99 | $ | 19.40 | |||
| NET ASSET VALUE TOTAL RETURN 3 | (2.07 | )% | (22.19 | )% | (3.00 | )% | |||
| RATIOS/SUPPLEMENTAL DATA: | |||||||||
| Net assets, end of period (000’s omitted) | $ | 59,451 | $ | 60,703 | $ | 85,377 | |||
| Ratios to average net assets: | |||||||||
| Expenses, net of expense reimbursements/waivers | 0.85 | % 4 | 0.85 | % | 0.85 | % 4 | |||
| Expenses, prior to expense reimbursements/waivers | 1.51 | % 4 | 1.69 | % | 2.24 | % 4 | |||
| Net investment income (loss) | 1.08 | % 4 | 0.39 | % | 0.11 | % 4 | |||
| Portfolio turnover rate | 22 | % 6 | 23 | % | 9 | % 6 | |||
EGShares India Small Cap ETF (Consolidated)
|
For the Period
April 1, 2012 Through September 30, 2012 (Unaudited) |
|||||||||
|
For the Period
July 7, 2010 1 Through March 31, 2011 |
|||||||||
|
For the
Year Ended March 31, 2012 |
|||||||||
| Net asset value, beginning of period | $ | 14.39 | $ | 19.29 | $ | 20.00 | |||
| Investment operations: | |||||||||
| Net investment income (loss) 2 | 0.09 | 0.14 | (0.01 | ) | |||||
| Net realized and unrealized gain (loss) on investments and foreign currency translations | 0.06 | (4.88 | ) | (0.68 | ) | ||||
| Total from investment operations | 0.15 | (4.74 | ) | (0.69 | ) | ||||
| Distributions to shareholders: | |||||||||
| Net investment income | — | (0.16 | ) | (0.02 | ) | ||||
| Net asset value, end of period | $ | 14.54 | $ | 14.39 | $ | 19.29 | |||
| NET ASSET VALUE TOTAL RETURN 3 | 1.04 | % | (24.33 | )% | (3.45 | )% | |||
| RATIOS/SUPPLEMENTAL DATA: | |||||||||
| Net assets, end of period (000’s omitted) | $ | 24,724 | $ | 26,616 | $ | 34,729 | |||
| Ratios to average net assets: | |||||||||
| Expenses, net of expense reimbursements/waivers | 0.85 | % 4 | 0.85 | % | 0.90 | % 4,5 | |||
| Expenses, prior to expense reimbursements/waivers | 2.04 | % 4 | 2.26 | % | 3.12 | % 4 | |||
| Net investment income (loss) | 1.37 | % 4 | 0.82 | % | (0.06 | )% 4 | |||
| Portfolio turnover rate | 1 | % 6 | 125 | % | 1 | % 6 | |||
| 1 | Commencement of operations. |
| 2 | Based on average shares outstanding. |
| 3 | Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Total return calculated for a period of less than one year is not annualized. The total return would have been lower if certain expenses had not been reimbursed/waived by the sub-adviser. |
| 4 | Annualized. |
| 5 | The ratio includes 0.05% for the period ended March 31, 2011 attributed to interest expense. |
| 6 | Not annualized. |
The accompanying notes are an integral part of these financial statements.
EGA Emerging Global Shares Trust 75
Financial Highlights (continued)
EGA Emerging Global Shares Trust
For a share outstanding throughout each period
EGShares Industrials GEMS ETF (Consolidated)
|
For the Period
April 1, 2012 Through September 30, 2012 (Unaudited) |
||||||
|
For the Period
June 23, 2011 1 Through March 31, 2012 |
||||||
| Net asset value, beginning of period | $ | 18.78 | $ | 20.00 | ||
| Investment operations: | ||||||
| Net investment income (loss) 2 | 0.16 | 0.09 | ||||
| Net realized and unrealized gain (loss) on investments and foreign currency translations | (0.17 | ) | (1.27 | ) | ||
| Total from investment operations | (0.01 | ) | (1.18 | ) | ||
| Distributions to shareholders: | ||||||
| Net investment income | — | (0.04 | ) | |||
| Net asset value, end of period | $ | 18.77 | $ | 18.78 | ||
| NET ASSET VALUE TOTAL RETURN 3 | (0.05 | )% | (5.88 | )% | ||
| RATIOS/SUPPLEMENTAL DATA: | ||||||
| Net assets, end of period (000’s omitted) | $ | 2,816 | $ | 1,878 | ||
| Ratios to average net assets: | ||||||
| Expenses, net of expense reimbursements/waivers | 0.85 | % 4 | 0.85 | % 4 | ||
| Expenses, prior to expense reimbursements/waivers | 6.38 | % 4 | 7.37 | % 4 | ||
| Net investment income (loss) | 1.87 | % 4 | 0.61 | % 4 | ||
| Portfolio turnover rate | 34 | % 5 | 70 | % 5 | ||
EGShares Low Volatility Emerging Markets Dividend ETF (Consolidated)
|
For the Period
April 1, 2012 Through September 30, 2012 (Unaudited) |
||||||
|
For the Period
August 4, 2011 1 Through March 31, 2012 |
||||||
| Net asset value, beginning of period | $ | 20.09 | $ | 20.00 | ||
| Investment operations: | ||||||
| Net investment income (loss) 2 | 0.58 | 0.33 | ||||
| Net realized and unrealized gain (loss) on investments and foreign currency translations | (1.42 | ) | 0.13 | |||
| Total from investment operations | (0.84 | ) | 0.46 | |||
| Distributions to shareholders: | ||||||
| Net investment income | (0.42 | ) | (0.37 | ) | ||
| Net asset value, end of period | $ | 18.83 | $ | 20.09 | ||
| NET ASSET VALUE TOTAL RETURN 3 | (4.11 | )% | 2.45 | % | ||
| RATIOS/SUPPLEMENTAL DATA: | ||||||
| Net assets, end of period (000’s omitted) | $ | 80,976 | $ | 59,255 | ||
| Ratios to average net assets: | ||||||
| Expenses, net of expense reimbursements/waivers | 0.85 | % 4 | 0.85 | % 4 | ||
| Expenses, prior to expense reimbursements/waivers | 1.41 | % 4 | 2.07 | % 4 | ||
| Net investment income (loss) | 6.18 | % 4 | 2.62 | % 4 | ||
| Portfolio turnover rate | 79 | % 5 | 45 | % 5 | ||
| 1 | Commencement of operations. |
| 2 | Based on average shares outstanding. |
| 3 | Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Total return calculated for a period of less than one year is not annualized. The total return would have been lower if certain expenses had not been reimbursed/waived by the sub-adviser. |
| 4 | Annualized. |
| 5 | Not annualized. |
The accompanying notes are an integral part of these financial statements.
76 EGA Emerging Global Shares Trust
Financial Highlights (continued)
EGA Emerging Global Shares Trust
For a share outstanding throughout each period
EGShares Technology GEMS ETF (Consolidated)
|
For the Period
April 1, 2012 Through September 30, 2012 (Unaudited) |
||||||
|
For the Period
June 23, 2011 1 Through March 31, 2012 |
||||||
| Net asset value, beginning of period | $ | 18.88 | $ | 20.00 | ||
| Investment operations: | ||||||
| Net investment income (loss) 2 | 0.15 | (0.02 | ) | |||
| Net realized and unrealized gain (loss) on investments and foreign currency translations | (0.97 | ) | (1.10 | ) | ||
| Total from investment operations | (0.82 | ) | (1.12 | ) | ||
| Distributions to shareholders: | ||||||
| Net investment income | — | — | ||||
| Net asset value, end of period | $ | 18.06 | $ | 18.88 | ||
| NET ASSET VALUE TOTAL RETURN 4 | (4.34 | )% | (5.60 | )% | ||
| RATIOS/SUPPLEMENTAL DATA: | ||||||
| Net assets, end of period (000’s omitted) | $ | 1,806 | $ | 1,888 | ||
| Ratios to average net assets: | ||||||
| Expenses, net of expense reimbursements/waivers | 0.85 | % 5 | 0.85 | % 5 | ||
| Expenses, prior to expense reimbursements/waivers | 9.05 | % 5 | 7.81 | % 5 | ||
| Net investment income (loss) | 1.75 | % 5 | (0.13 | )% 5 | ||
| Portfolio turnover rate | 12 | % 6 | 21 | % 6 | ||
EGShares Telecom GEMS ETF (Consolidated)
|
For the Period
April 1, 2012 Through September 30, 2012 (Unaudited) |
||||||
|
For the Period
June 23, 2011 1 Through March 31, 2012 |
||||||
| Net asset value, beginning of period | $ | 20.21 | $ | 20.00 | ||
| Investment operations: | ||||||
| Net investment income (loss) 2 | 0.52 | 0.41 | ||||
| Net realized and unrealized gain (loss) on investments and foreign currency translations | 0.03 | 0.01 | 3 | |||
| Total from investment operations | 0.55 | 0.42 | ||||
| Distributions to shareholders: | ||||||
| Net investment income | — | (0.21 | ) | |||
| Net asset value, end of period | $ | 20.76 | $ | 20.21 | ||
| NET ASSET VALUE TOTAL RETURN 4 | 2.72 | % | 2.22 | % | ||
| RATIOS/SUPPLEMENTAL DATA: | ||||||
| Net assets, end of period (000’s omitted) | $ | 4,153 | $ | 3,032 | ||
| Ratios to average net assets: | ||||||
| Expenses, net of expense reimbursements/waivers | 0.85 | % 5 | 0.85 | % 5 | ||
| Expenses, prior to expense reimbursements/waivers | 3.97 | % 5 | 7.74 | % 5 | ||
| Net investment income (loss) | 5.29 | % 5 | 2.73 | % 5 | ||
| Portfolio turnover rate | 15 | % 6 | 18 | % 6 | ||
| 1 | Commencement of operations. |
| 2 | Based on average shares outstanding. |
| 3 | The realized and unrealized gain on investments and foreign currency transactions does not accord with the amounts reported in the Statement of Operations due to the timing of subscriptions of fund shares in relation to the investment performance during the period and contributions made by Authorized Participants to compensate the Fund for additional costs incurred in purchasing securities that were not transferred in kind (See Note 10). |
| 4 | Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Total return calculated for a period of less than one year is not annualized. The total return would have been lower if certain expenses had not been reimbursed/waived by the sub-adviser. |
| 5 | Annualized. |
| 6 | Not annualized. |
The accompanying notes are an integral part of these financial statements.
EGA Emerging Global Shares Trust 77
Financial Highlights (concluded)
EGA Emerging Global Shares Trust
For a share outstanding throughout each period
EGShares Utilities GEMS ETF (Consolidated)
|
For the Period
April 1, 2012 Through September 30, 2012 (Unaudited) |
||||||
|
For the Period
June 23, 2011 1 Through March 31, 2012 |
||||||
| Net asset value, beginning of period | $ | 18.59 | $ | 20.00 | ||
| Investment operations: | ||||||
| Net investment income (loss) 2 | 0.33 | 0.25 | ||||
| Net realized and unrealized gain (loss) on investments and foreign currency translations | (1.63 | ) | (1.46 | ) | ||
| Total from investment operations | (1.30 | ) | (1.21 | ) | ||
| Distributions to shareholders: | ||||||
| Net investment income | — | (0.20 | ) | |||
| Net asset value, end of period | $ | 17.29 | $ | 18.59 | ||
| NET ASSET VALUE TOTAL RETURN 3 | (6.99 | )% | (5.89 | )% | ||
| RATIOS/SUPPLEMENTAL DATA: | ||||||
| Net assets, end of period (000’s omitted) | $ | 2,594 | $ | 2,788 | ||
| Ratios to average net assets: | ||||||
| Expenses, net of expense reimbursements/waivers | 0.85 | % 4 | 0.87 | % 4,5 | ||
| Expenses, prior to expense reimbursements/waivers | 5.33 | % 4 | 7.08 | % 4 | ||
| Net investment income (loss) | 3.76 | % 4 | 1.82 | % 4 | ||
| Portfolio turnover rate | 15 | % 6 | 27 | % 6 | ||
| 1 | Commencement of operations. |
| 2 | Based on average shares outstanding. |
| 3 | Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. Total return calculated for a period of less than one year is not annualized. The total return would have been lower if certain expenses had not been reimbursed/waived by the sub-adviser. |
| 4 | Annualized. |
| 5 | The ratio includes 0.02% for the period March 31, 2012 attributed to interest expense, which is outside the cap expense. |
| 6 | Not annualized. |
The accompanying notes are an integral part of these financial statements.
78 EGA Emerging Global Shares Trust
Notes to Financial Statements
September 30, 2012 (Unaudited)
1. ORGANIZATION
EGA Emerging Global Shares Trust (the “Trust”) is a Delaware statutory trust organized on September 12, 2008. The Trust is an open-end management investment company, registered under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently consists of forty-eight separate non-diversified series, each of which tracks an underlying index (each, an “Underlying Index”). As of the date of this report, only the following ETFs (each an “ETF” or “Fund” and collectively the “ETFs” or “Funds”) are being publicly offered:
| Commencement | |
| Funds | of Operations |
| EGShares Basic Materials GEMS ETF (“Basic Materials ETF”) | June 23, 2011 |
| EGShares Beyond BRICs ETF (“Beyond BRICs ETF”) | August 15, 2012 |
| EGShares Brazil Infrastructure ETF (“Brazil Infrastructure ETF”) | February 24, 2010 |
| EGShares China Infrastructure ETF (“China Infrastructure ETF”) | February 17, 2010 |
| EGShares Consumer Goods GEMS ETF (“Consumer Goods ETF”) | June 23, 2011 |
| EGShares Consumer Services GEMS ETF (“Consumer Services ETF”) | June 23, 2011 |
| EGShares Emerging Markets Consumer ETF (“Consumer ETF”) | September 14, 2010 |
| EGShares Emerging Markets Domestic Demand ETF (“Domestic Demand ETF”) | August 15, 2012 |
| EGShares Emerging Markets Metals & Mining ETF (“Metals & Mining ETF”) | May 21, 2009 |
| EGShares Energy GEMS ETF (“Energy ETF”) | May 21, 2009 |
| EGShares Financials GEMS ETF (“Financials ETF”) | September 16, 2009 |
| EGShares GEMS Composite ETF (“Composite ETF”) | July 22, 2009 |
| EGShares Health Care GEMS ETF (“Health Care ETF”) | June 23, 2011 |
| EGShares India Consumer ETF (“India Consumer ETF”) | August 10, 2011 |
| EGShares India Infrastructure ETF (“India Infrastructure ETF”) | August 11, 2010 |
| EGShares India Small Cap ETF (“India Small Cap ETF”) | July 7, 2010 |
| EGShares Industrials GEMS ETF (“Industrials ETF”) | June 23, 2011 |
| EGShares Low Volatility Emerging Markets Dividend ETF (“Low Volatility Dividend ETF”) | August 4, 2011 |
| EGShares Technology GEMS ETF (“Technology ETF”) | June 23, 2011 |
| EGShares Telecom GEMS ETF (“Telecom ETF”) | June 23, 2011 |
| EGShares Utilities GEMS ETF (“Utilities ETF”) | June 23, 2011 |
The Basic Materials ETF’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the Dow Jones Emerging Markets Basic Materials Titans 30 Index SM . The Dow Jones Emerging Markets Basic Materials Titans 30 Index SM is comprised of publicly traded firms in the “Basic Materials Industry,” as defined by ICB.
The Beyond BRICs ETF’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the INDXX Beyond BRICs Index. The INDXX Beyond BRICs Index is comprised of 50 leading companies that INDXX, LLC determines to be representative of all industries in emerging market countries, excluding Brazil, Russia, India and China.
The Brazil Infrastructure ETF’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the INDXX Brazil Infrastructure Index. The INDXX Brazil Infrastructure Index is comprised of 30 leading companies that INDXX, LLC determines to be representative of Brazil’s infrastructure sectors.
The China Infrastructure ETF’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the INDXX China Infrastructure Index. The INDXX China Infrastructure Index is comprised of 30 leading companies that INDXX, LLC determines to be representative of China’s infrastructure sectors.
The Consumer Goods ETF’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the Dow Jones Emerging Markets Consumer Goods Titans 30 Index SM . The Dow Jones Emerging Markets Consumer Goods Titans 30 Index SM is comprised of publicly traded firms in the “Consumer Goods Industry,” as defined by ICB.
The Consumer Services ETF’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the Dow Jones Emerging Markets Consumer Services Titans 30 Index SM . The Dow Jones Emerging Markets Consumer Services Titans 30 Index SM is comprised of publicly traded firms in the “Consumer Services Industry,” as defined by ICB.
The Consumer ETF’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the Dow Jones Emerging Markets Consumer Titans 30 Index SM . The Dow Jones Emerging Markets Consumer Titans 30 Index SM is comprised of publicly traded firms in the “Consumer Goods Industry” and “Consumer Services Industry,” as defined by ICB.
EGA Emerging Global Shares Trust 79
Notes to Financial Statements
(continued)
September 30, 2012 (Unaudited)
The Domestic Demand ETF’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the INDXX Emerging Markets Domestic Demand Index. The INDXX Emerging Markets Domestic Demand Index is comprised of a representative sample of 50 emerging markets companies in sectors INDXX, LLC determines may have greater exposure to local markets than the MSCI Emerging Markets Index SM .
The Metals & Mining ETF’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the Dow Jones Emerging Markets Metals & Mining Titans 30 Index SM . The Dow Jones Emerging Markets Metals & Mining Titans 30 Index SM comprised of publicly traded firms in the “Industrial Metals and Mining Sector” and “Mining Sector,” as defined by ICB.
The Energy ETF’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the Dow Jones Emerging Markets Oil and Gas Titans 30 Index SM . The Dow Jones Emerging Markets Oil and Gas Titans 30 Index SM is comprised of publicly traded firms in the “Oil and Gas Industry,” as defined by ICB.
The Financials ETF’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the Dow Jones Emerging Markets Financials Titans 30 Index SM . The Dow Jones Emerging Markets Financials Titans 30 Index SM is comprised of publicly traded firms in the “Financials Industry,” as defined by ICB.
The Composite ETF’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the Dow Jones Emerging Markets Sector Titans Composite 100 Index SM . The Dow Jones Emerging Markets Sector Titans Composite 100 Index SM is comprised of a representative sample of 100 Emerging Markets companies deemed to be the 10 leading companies in each of the 10 “Industries,” as defined by the Industry Classification Benchmark (“ICB”).
The Health Care ETF’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the Dow Jones Emerging Markets Health Care Titans 30 Index SM . The Dow Jones Emerging Markets Health Care Titans 30 Index SM is comprised of publicly traded firms in the “Health Care Industry,” as defined by ICB.
The India Consumer ETF’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the INDXX India Consumer Index. The INDXX India Consumer Index is comprised of 30 leading companies that INDXX, LLC determines to be representative of India’s consumer sectors.
The India Infrastructure ETF’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the INDXX India Infrastructure Index. The INDXX India Infrastructure Index is comprised of 30 leading companies that INDXX, LLC determines to be representative of India’s infrastructure sectors.
The India Small Cap ETF’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the INDXX India Small Cap Index. The INDXX India Small Cap Index is comprised of a representative sample of 75 emerging markets companies that INDXX, LLC determines to be representative of small capitalization companies domiciled in India.
The Industrials ETF’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the Dow Jones Emerging Markets Industrials Titans 30 Index SM . The Dow Jones Emerging Markets Industrials Titans 30 Index SM is comprised of publicly traded firms in the “Industrials Industry,” as defined by ICB.
The Low Volatility Dividend ETF’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the INDXX Emerging Market High Income Low Beta Index. The INDXX Emerging Market High Income Low Beta Index is comprised of a representative sample of 30 emerging markets companies that INDXX, LLC determines to have lower relative volatility (i.e., low beta) than the broad market benchmark indices of the local exchanges in which the component securities trade, which have also paid dividends consistently over the last three years.
The Technology ETF’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the Dow Jones Emerging Markets Technology Titans 30 Index SM . The Dow Jones Emerging Markets Technology Titans 30 Index SM is comprised of publicly traded firms in the “Technology Industry,” as defined by ICB.
The Telecom ETF’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the Dow Jones Emerging Markets Telecommunications Titans 30 Index SM . The Dow Jones Emerging Markets Telecommunications Titans 30 Index SM is comprised of publicly traded firms in the “Telecommunications Industry,” as defined by ICB.
The Utilities ETF’s investment objective is to seek investment results that correspond (before fees and expenses) to the price and yield performance of the Dow Jones Emerging Markets Utilities Titans 30 Index SM . The Dow Jones Emerging Markets Utilities Titans 30 Index SM is comprised of publicly traded firms in the “Utilities Industry,” as defined by ICB.
80 EGA Emerging Global Shares Trust
Notes to Financial Statements
(continued)
September 30, 2012 (Unaudited)
2. CONSOLIDATION OF SUBSIDIARIES
The Consolidated Schedules of Investments, Consolidated Statements of Asset and Liabilities, of Operations and of Changes in Net Assets and the Consolidated Financial Highlights of the ETFs listed below include the accounts of wholly owned subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation.
| Funds | Wholly Owned Subsidiary |
| Basic Materials ETF | EGShares Basic Materials Mauritius |
| Consumer Goods ETF | EGShares Consumer Goods Mauritius |
| Consumer ETF | EGShares Consumer Mauritius |
| Domestic Demand ETF | EGShares Domestic Demand Mauritius |
| Metals & Mining ETF | EGShares Metals & Mining Mauritius |
| Energy ETF | EGShares Energy Fund Mauritius |
| Financials ETF | EGShares Financials Fund Mauritius |
| Composite ETF | EGShares Composite Mauritius |
| Health Care ETF | EGShares Health Care Mauritius |
| India Consumer ETF | EGShares India Consumer Mauritius |
| India Infrastructure ETF | EGShares India Infrastructure Mauritius |
| India Small Cap ETF | EGShares India Small Cap Mauritius |
| Industrials ETF | EGShares Industrials Mauritius |
| Low Volatility Dividend ETF | EGShares Low Volatility Emerging Markets Dividend Mauritius |
| Technology ETF | EGShares Technology Mauritius |
| Telecom ETF | EGShares Telecom Mauritius |
| Utilities ETF | EGShares Utilities Mauritius |
The Basic Materials ETF, Consumer Goods ETF, Consumer ETF, Domestic Demand ETF, Metals & Mining ETF, Energy ETF, Financials ETF, Composite ETF, Health Care ETF, Industrials ETF, Low Volatility Dividend ETF, Technology ETF, Telecom ETF and Utilities ETF may each invest its assets in a wholly owned subsidiary in Mauritius, which in turn invests virtually all of its assets in Indian securities, based on the number of Indian securities that are included in each ETF’s respective Index.
The India Infrastructure ETF, India Small Cap ETF and India Consumer ETF invest substantially all of their assets in wholly owned subsidiaries in Mauritius, which in turn invest at least 90% of their assets in Indian securities, and to some extent ADRs and GDRs, based on the number of Indian securities that are included in each ETF’s respective Index.
By investing in a wholly owned subsidiary, the Basic Materials ETF, the Consumer Goods ETF, the Consumer ETF, the Domestic Demand ETF, the Metals & Mining ETF, the Energy ETF, the Financials ETF, the Composite ETF, the Health Care ETF, the India Consumer ETF, the India Infrastructure ETF, the India Small Cap ETF, the Industrials ETF, the Low Volatility Dividend ETF, the Technology ETF, the Telecom ETF and the Utilities ETF each obtain benefits under the tax treaty between Mauritius and India. Each subsidiary may be subject to withholding taxes imposed by the Indian government on dividends, interest and realized capital gains should new legislation be passed to modify the current tax treaty with Mauritius. Any change in the provision of this treaty could result in the imposition of withholding and other taxes on these ETFs by authorities in India. This would reduce the return on investment and the return received by each ETF’s shareholders.
EGA Emerging Global Shares Trust 81
Notes to Financial Statements
(continued)
September 30, 2012 (Unaudited)
A summary of each ETF’s investment in its corresponding subsidiary is as follows:
|
Subsidiary
Net Assets at September 30, 2012 |
% of ETF’s Total
Net Assets at September 30, 2012 |
||||
|
Inception Date
of Subsidiary |
|||||
| Funds | |||||
| Basic Materials ETF | June 23, 2011 | $ | 234,835 | 8.3 | % |
| Consumer Goods ETF | June 23, 2011 | 337,671 | 15.1 | ||
| Consumer ETF | September 14, 2010 | 50,698,182 | 11.3 | ||
| Domestic Demand ETF | August 15, 2012 | 690,930 | 13.5 | ||
| Metals & Mining ETF | September 19, 2011 | 1,326,516 | 10.5 | ||
| Energy ETF | June 27, 2011 | 1,111,428 | 9.3 | ||
| Financials ETF | June 27, 2011 | 195,090 | 5.0 | ||
| Composite ETF | September 19, 2011 | 673,072 | 5.0 | ||
| Health Care ETF | June 23, 2011 | 554,663 | 26.2 | ||
| India Consumer ETF | August 10, 2011 | 2,234,361 | 101.2 | ||
| India Infrastructure ETF | August 11, 2010 | 59,434,989 | 100.0 | ||
| India Small Cap ETF | July 7, 2010 | 24,755,366 | 100.1 | ||
| Industrials ETF | June 23, 2011 | 393,459 | 14.0 | ||
| Low Volatility Dividend ETF | August 4, 2011 | 9,278,174 | 11.5 | ||
| Technology ETF | June 23, 2011 | 404,595 | 22.4 | ||
| Telecom ETF | June 23, 2011 | 180,628 | 4.3 | ||
| Utilities ETF | June 23, 2011 | 349,028 | 13.5 | ||
3. SIGNIFICANT ACCOUNTING POLICIES
These financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual amounts could differ from these estimates. The following summarizes the significant accounting policies of the ETFs.
Indemnifications
In the normal course of business, the Trust enters into contracts that contain a variety of representations that provide general indemnifications. The Trust’s maximum exposure under these arrangements cannot be known as this would involve future claims that may be made against the Trust that have not yet occurred; however, the Trust expects any risk of loss to be remote.
Investment Valuation
The Net Asset Value (“NAV”) per share is computed as of the scheduled close of regular trading on the New York Stock Exchange (“NYSE”), ordinarily 4:00 p.m. Eastern time, on each day during which the NYSE is open for trading. The NAV per share of an ETF is computed by dividing the value of the ETF’s portfolio securities, cash and other assets (including accrued interest), less all liabilities (including accrued expenses), by the total number of shares outstanding at the time such computation is made.
Securities Valuation
Equity securities (including American Depositary Receipts and Global Depositary Receipts) are valued at the last reported sale price on the principal exchange on which such securities are traded, as of the close of regular trading on the NYSE on the day the securities are being valued or, if there are no sales, at the mean of the most recent bid and asked prices. Equity securities that are traded in over-the-counter markets are valued at the NASDAQ Official Closing Price as of the close of regular trading on the NYSE on the day the securities are valued or, if there are no sales, at the mean of the most recent bid and asked prices. Securities for which market quotations are not readily available, including restricted securities, are valued by a method that the Board of Trustees (the “Board”) believes accurately reflects fair value. The value of assets denominated in foreign currencies is converted into U.S. dollars using exchange rates deemed appropriate by the ETFs. Use of a rate different from the rate used by CME Group Index Services LLC or INDXX, LLC may adversely affect an ETF’s ability to track its Underlying Index.
82 EGA Emerging Global Shares Trust
Notes to Financial Statements
(continued)
September 30, 2012 (Unaudited)
Foreign Currency Translations
Investments denominated in foreign currencies are subject to additional risk factors as compared to investments denominated in U.S. dollars. The value of an investment denominated in a foreign currency could change significantly as foreign currencies strengthen or weaken relative to the U.S. dollar. Generally, when the U.S. dollar gains in value against a foreign currency, an investment traded in that foreign currency loses value because that currency is worth fewer U.S. dollars. Risks related to foreign currencies also include those related to economic or political developments, market inefficiencies or a higher risk that essential investment information may be incomplete, unavailable or inaccurate. A U.S. dollar investment in depositary receipts or ordinary shares of foreign issuers traded on U.S. exchanges is indirectly subject to foreign currency risk to the extent that the issuer conducts its principal business in markets where transactions are denominated in foreign currencies.
Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the exchange rate of such currencies against U.S. dollars on the date of valuation. Purchases and sales of securities and income items denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The ETFs do not separately report the effect of changes in foreign exchange rates from changes in market prices on securities held. Such changes are included in net realized and unrealized gain or loss from investments.
Realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions and the difference between the recorded amounts of dividends, interest, and foreign withholding taxes, and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period.
Security Transactions and Related Income
Investment transactions are recorded on trade date. The ETFs determine the gain or loss realized from the investment transactions by comparing the identified cost, which is the same basis used for federal income tax purposes, with the net sales proceeds. Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis. Discounts are accreted and premiums are amortized on securities purchased over the lives of the respective securities.
Federal Income Taxes
The Basic Materials ETF, Brazil Infrastructure ETF, China Infrastructure ETF, Consumer Goods ETF, Consumer Services ETF, Consumer ETF, Metals & Mining ETF, Energy ETF, Financials ETF, Composite ETF, Health Care ETF, India Consumer ETF, India Infrastructure ETF, India Small Cap ETF, Industrials ETF, Low Volatility Dividend ETF, Technology ETF, Telecom ETF and Utilities ETF have qualified and continue to qualify, and the Beyond BRICs ETF and Domestic Demand ETF intend to qualify as a “regulated investment company” under Subchapter M of the Internal Revenue Code. If so qualified, an ETF will not be subject to federal income tax to the extent it distributes substantially all of its net investment income and capital gains to shareholders. Each ETF expects to declare and pay all of its net investment income, if any, to shareholders as dividends annually (quarterly for the Low Volatility Dividend ETF), and will also declare and pay net realized capital gains, if any, at least annually, except where the costs of such distributions exceed the amount of tax that the distributions are intended to avoid, in which case the ETF will pay the applicable tax. An ETF may distribute such income dividends and capital gains more frequently, if necessary, in order to reduce or eliminate federal excise or income taxes on the ETF. Distributions to shareholders are recorded on the ex-dividend date.
The ETFs are subject to accounting standards that provide guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. These standards require the evaluation of tax positions taken or expected to be taken by the ETFs and whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Accounting for uncertainty in income taxes requires management of the ETFs to analyze all open tax years as defined by IRS statute of limitations, for all major jurisdictions, including federal tax authorities and certain state tax authorities. Open tax years are those years that are open for examination by the relevant income taxing authority. As of March 31, 2012, open Federal and state income tax years include the tax years or periods ended March 31, 2010, March 31, 2011 and March 31, 2012. The ETFs have no examinations in progress.
There is no tax liability resulting from uncertain income tax positions taken or expected to be taken. The ETFs are also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax expense will significantly change in the next twelve months.
Expenses
Expenses of the Trust, which are directly identifiable to a specific ETF, are applied to that ETF. Expenses which are not readily identifiable to a specific ETF are allocated in such a manner as deemed equitable, taking into consideration the nature and type of expense and the relative net assets of each ETF in the Trust.
EGA Emerging Global Shares Trust 83
Notes to Financial Statements
(continued)
September 30, 2012 (Unaudited)
Offering Expenses
Costs incurred in connection with the initial offering of the ETFs are being amortized over a 12-month period from inception of the ETF.
4. CONCENTRATION OF MARKET RISK
The India Infrastructure ETF, India Small Cap ETF and India Consumer ETF, only invest in Indian securities, therefore, their NAVs will be much more sensitive to changes in economic, political and other factors within India than would a fund that invested in a greater variety of countries.
The China Infrastructure ETF only invests in Chinese securities, therefore, its NAV will be much more sensitive to changes in economic, political and other factors within China than would a fund that invested in a greater variety of countries.
The Brazil Infrastructure ETF only invests in Brazilian securities, therefore, its NAV will be much more sensitive to changes in economic, political and other factors within Brazil than would a fund that invested in a greater variety of countries.
The India Small Cap ETF concentrates its investments in small capitalization companies, and as such, may be adversely affected by increased price volatility of securities in that capitalization.
The Basic Materials ETF concentrates its investments in the basic materials industry, and as such, may be adversely affected by increased price volatility of securities in that industry, and may be more susceptible to adverse economic, market, political or regulatory occurrences affecting that industry. Issuers in the basic materials industry are at risk for environmental damage and product liability claims and may be adversely affected by depletion of resources, technical progress, labor relations and governmental regulations.
The Consumer ETF, Consumer Goods ETF, Consumer Services ETF and India Consumer ETF concentrate their investments in the consumer industry, and as such, may be adversely affected by increased price volatility of securities in that industry, and may be more susceptible to adverse economic, market, political or regulatory occurrences affecting that industry. The success of consumer goods and consumer services suppliers and retailers is tied closely to the performance of the domestic and international economy, interest rates, currency exchange rates, competition, preferences, and consumer confidence.
The Energy ETF concentrates its investments in the oil and gas industry, and as such, may be adversely affected by increased price volatility of securities in that industry, and may be more susceptible to adverse economic, market, political or regulatory occurrences affecting that industry. The profitability of companies in the oil and gas industry (including alternative energy suppliers) is related to worldwide energy prices, exploration, and production spending.
The Financials ETF concentrates its investments in the financial industry, and as such may be adversely affected by increased price volatility of securities in that industry, and may be more susceptible to adverse economic, market, political or regulatory occurrences affecting that industry. Companies in the financial industry are subject to extensive governmental regulation, which may adversely affect the scope of their activities, the prices they can charge and the amount of capital they must maintain.
The Health Care ETF concentrates its investments in the health care industry, and as such, may be adversely affected by increased price volatility of securities in that industry, and may be more susceptible to adverse economic, market, political or regulatory occurrences affecting that industry. The profitability of companies in the health care industry may be affected by extensive government regulation, restriction on government reimbursement for medical expenses, rising costs of medical products and services, pricing pressure, an increased emphasis on outpatient services, limited number of products, industry innovation, changes in technologies and other market developments.
The Industrials ETF concentrates its investments in the industrials industry, and as such, may be adversely affected by increased price volatility of securities in that industry, and may be more susceptible to adverse economic, market, political or regulatory occurrences affecting that industry. Government regulation, world events and economic conditions affect the performance of companies in the industrials industry.
The Technology ETF concentrates its investments in the technology industry, and as such, may be adversely affected by increased price volatility of securities in that industry, and may be more susceptible to adverse economic, market, political or regulatory occurrences affecting that industry. Technology companies may be affected by intense competition, obsolescence of existing technology, general economic conditions, government regulation and may have limited product lines, markets, financial resources or personnel.
The Telecom ETF concentrates its investments in the telecommunications industry, and as such, may be adversely affected by increased price volatility of securities in that industry, and may be more susceptible to adverse economic, market, political or regulatory occurrences affecting that industry. The global telecommunications market is characterized by increasing competition and government regulation.
The Utilities ETF concentrates its investments in the utilities industry, and as such, may be adversely affected by increased price volatility of securities in that industry, and may be more susceptible to adverse economic, market, political or regulatory occurrences affecting that industry. Companies in the utilities industry may be adversely affected by changes in exchange rates, domestic and international competition, and governmental limitation on rates charged to customers.
84 EGA Emerging Global Shares Trust
Notes to Financial Statements
(continued)
September 30, 2012 (Unaudited)
The Metals & Mining ETF concentrates its investments in the metals and mining industry, and as such, may be adversely affected by increased price volatility of securities in that industry, and may be more susceptible to adverse economic, market, political or regulatory occurrences affecting that industry. Securities of companies involved in metals and mining may be subject to broad price fluctuations, reflecting volatility of energy and basic materials prices and possible instability of supply of various basic resources.
The India Infrastructure ETF, China Infrastructure ETF, and Brazil Infrastructure ETF concentrate their investments in the infrastructure sector, and as such, may be adversely affected by increased price volatility of securities in that sector, and may be more susceptible to adverse economic, market, political or regulatory occurrences affecting that sector.
The ETFs are subject to emerging markets risk. Investments in emerging market securities are subject to even greater risks than for foreign investments generally, including increased risks of: illiquidity of securities; price volatility; inflation or deflation; restrictions on foreign investment; nationalization; higher taxation; economic and political instability; pervasive corruption and crime; less governmental regulation; and less developed legal systems.
5. DISTRIBUTION AGREEMENT
ALPS Distributors, Inc., (the “Distributor”) serves as the distributor of Creation Units for the ETFs pursuant to a distribution agreement. The Distributor does not maintain a secondary market in shares. The ETFs have adopted a Distribution and Service Plan (the “Plan”) pursuant to Rule 12b-1 under the 1940 Act. In accordance with the Plan, each ETF is authorized to pay an amount up to 0.25% of its average daily net assets each year for certain distribution-related activities. For the period ended September 30, 2012, no fees were paid by the ETFs under the Plan, and there are no current plans to impose these fees.
6. FEDERAL INCOME TAX MATTERS
For the period ended September 30, 2012, federal tax cost of investments and net unrealized appreciation (depreciation) were as follows:
|
Federal
Tax Cost of Investments |
Gross
Unrealized Appreciation |
Gross
Unrealized Depreciation |
Net Unrealized
Appreciation (Depreciation) |
|||||||
| Funds | ||||||||||
| Basic Materials ETF* | $ | 3,262,780 | $ | 45,340 | $ | (469,431 | ) | $ | (424,091 | ) |
| Beyond BRICs ETF | 7,039,850 | 183,708 | (54,721 | ) | 128,987 | |||||
| Brazil Infrastructure ETF* | 69,894,325 | 10,179,876 | (10,487,024 | ) | (307,148 | ) | ||||
| China Infrastructure ETF* | 13,420,853 | 179,068 | (3,133,458 | ) | (2,954,390 | ) | ||||
| Consumer Goods ETF* | 2,071,382 | 229,622 | (63,038 | ) | 166,584 | |||||
| Consumer Services ETF* | 2,008,099 | 139,760 | (96,737 | ) | 43,023 | |||||
| Consumer ETF* | 420,783,941 | 48,353,012 | (19,081,066 | ) | 29,271,946 | |||||
| Domestic Demand ETF | 4,993,926 | 239,462 | (113,897 | ) | 125,565 | |||||
| Metals & Mining ETF* | 17,445,664 | 188,799 | (5,035,778 | ) | (4,846,979 | ) | ||||
| Energy ETF* | 13,440,965 | 187,642 | (1,713,799 | ) | (1,526,157 | ) | ||||
| Financials ETF* | 4,391,688 | 116,515 | (587,024 | ) | (470,509 | ) | ||||
| Composite ETF* | 14,659,692 | 967,791 | (2,232,664 | ) | (1,264,873 | ) | ||||
| Health Care ETF* | 1,908,738 | 257,283 | (39,741 | ) | 217,542 | |||||
| India Consumer ETF* | 1,836,896 | 438,788 | (42,602 | ) | 396,186 | |||||
| India Infrastructure ETF* | 74,999,055 | 2,552,954 | (18,267,038 | ) | (15,714,084 | ) | ||||
| India Small Cap ETF* | 25,156,132 | 2,514,785 | (2,997,187 | ) | (482,402 | ) | ||||
| Industrials ETF* | 2,887,205 | 55,078 | (123,443 | ) | (68,365 | ) | ||||
| Low Volatility Dividend ETF* | 82,282,330 | 1,888,020 | (2,495,390 | ) | (607,370 | ) | ||||
| Technology ETF* | 1,835,812 | 143,358 | (161,985 | ) | (18,627 | ) | ||||
| Telecom ETF* | 4,046,208 | 345,006 | (255,596 | ) | 89,410 | |||||
| Utilities ETF* | 2,650,463 | 183,898 | (241,113 | ) | (57,215 | ) | ||||
| * | Cost of investments on a tax basis, includes the adjustment for financial reporting purposes, as of the most recently completed Federal income Tax reporting period end. |
The differences between book basis and tax basis components of net assets are primarily attributable to tax deferral of losses on wash sales, unamortized organization costs, mark to market on Passive Foreign Investment Companies (“PFIC”) securities and deferral of post-October and December losses.
EGA Emerging Global Shares Trust 85
Notes to Financial Statements
(continued)
September 30, 2012 (Unaudited)
For the period ended March 31, 2012, the components of accumulated earnings (losses) on a tax-basis were as follows:
|
Net
Unrealized Appreciation (Depreciation) |
|||||||||||
|
Accumulated
Capital and Other Losses |
Total
Accumulated Earnings (Losses) |
||||||||||
|
Undistributed
Ordinary Income |
|||||||||||
| Funds | |||||||||||
| Basic Materials ETF | $ | 4,500 | $ | (31,501 | ) | $ | (264,649 | ) | $ | (291,650 | ) |
| Brazil Infrastructure ETF | 826,959 | (4,703,916 | ) | 8,152,764 | 4,275,807 | ||||||
| China Infrastructure ETF | 119 | (1,515,058 | ) | (3,444,344 | ) | (4,959,283 | ) | ||||
| Consumer Goods ETF | 3,470 | (18,646 | ) | 119,508 | 104,332 | ||||||
| Consumer Services ETF | — | (17,724 | ) | 18,360 | 636 | ||||||
| Consumer ETF | 124,633 | (360,737 | ) | 31,914,981 | 31,678,877 | ||||||
| Metals & Mining ETF | 14,668 | (1,228,800 | ) | (3,437,932 | ) | (4,652,064 | ) | ||||
| Energy ETF | 9,335 | (1,050,808 | ) | (1,204,037 | ) | (2,245,510 | ) | ||||
| Financials ETF | — | (61,209 | ) | (515,942 | ) | (577,151 | ) | ||||
| Composite ETF | 23,269 | (1,256,789 | ) | (877,053 | ) | (2,110,573 | ) | ||||
| Health Care ETF | 2,153 | (30,130 | ) | 1,552 | (26,425 | ) | |||||
| India Consumer ETF | — | (31,428 | ) | 101,748 | 70,320 | ||||||
| India Infrastructure ETF | 464,495 | (10,319,271 | ) | (16,596,265 | ) | (26,451,041 | ) | ||||
| India Small Cap ETF | — | (12,583,498 | ) | (731,063 | ) | (13,314,561 | ) | ||||
| Industrials ETF | 39,045 | — | (211,502 | ) | (172,457 | ) | |||||
| Low Volatility Dividend ETF | 139,299 | (871,161 | ) | 1,132,177 | 400,315 | ||||||
| Technology ETF | — | (56,488 | ) | (1,047 | ) | (57,535 | ) | ||||
| Telecom ETF | 15,242 | (8,641 | ) | 21,084 | 27,685 | ||||||
| Utilities ETF | 11,158 | (46,102 | ) | 122,122 | 87,178 | ||||||
For financial reporting purposes, capital accounts are adjusted to reflect the tax character of permanent book/tax differences. Reclassifications are primarily due to tax treatment of redemptions in kind, PFIC sold adjustments, non-deductible offering costs, return of capital distributions and tax treatment of currency gains and losses. Results of operations and net assets were not affected by these reclassifications.
Certain net losses incurred after October 31 and December 31, and within the taxable year or period are deemed to arise on the first business day of the ETFs’ next taxable year. For the period ended March 31, 2012, the ETFs deferred to April 1, 2012 these losses of:
|
Late Year
Ordinary Losses |
Post October
Capital Losses |
|||
| Funds | ||||
| Basic Materials ETF | $ | — | $ | — |
| Brazil Infrastructure ETF | — | 90,834 | ||
| China Infrastructure ETF | 28,473 | 157,799 | ||
| Consumer Goods ETF | — | 1,855 | ||
| Consumer Services ETF | 1,061 | 9,108 | ||
| Consumer ETF | — | — | ||
| Metals & Mining ETF | — | — | ||
| Energy ETF | — | 778,524 | ||
| Financials ETF | — | — | ||
| Composite ETF | — | — | ||
| Health Care ETF | — | — | ||
| India Consumer ETF | 743 | 30,685 | ||
| India Infrastructure ETF | — | 4,788,346 | ||
| India Small Cap ETF | 38,927 | 8,430,012 | ||
| Industrials ETF | 637 | — | ||
| Low Volatility Dividend ETF | — | — | ||
| Technology ETF | — | 6,580 | ||
| Telecom ETF | — | 6,259 | ||
| Utilities ETF | — | 710 | ||
86 EGA Emerging Global Shares Trust
Notes to Financial Statements
(continued)
September 30, 2012 (Unaudited)
On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the “Act”) was enacted, which changed various technical rules governing the tax treatment of regulated investment companies. The changes are generally effective for taxable years beginning after the date of enactment. One of the more prominent changes addresses capital loss carryforwards. Under the Act, each ETF will be permitted to carryforward capital losses incurred in taxable years beginning after the date of enactment for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years, which carry an expiration date. As a result of this ordering rule pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment capital loss carryforwards will retain their character as either short-term or long-term capital losses rather than being considered all short-term losses as permitted under previous regulation. At March 31, 2012, for Federal income tax purposes, the following ETFs had capital loss carryforwards available to offset future capital gains as per the guidelines set forth in the Act:
|
Carryforwards with No Expiration* |
Carryforwards Expiring In |
|||||||
|
Short-Term
Capital Loss Carryforward |
Long-Term
Capital Loss Carryforward |
Fiscal Year
2018 |
Fiscal Year
2019 |
|||||
| Funds | ||||||||
| Basic Materials ETF | $ | 31,501 | $ | — | $ | — | $ | — |
| Brazil Infrastructure ETF | 3,632,725 | 980,357 | — | — | ||||
| China Infrastructure ETF | 1,151,170 | 174,805 | — | 2,811 | ||||
| Consumer Goods ETF | 16,791 | — | — | — | ||||
| Consumer Services ETF | 7,555 | — | — | — | ||||
| Consumer ETF | 360,737 | — | — | — | ||||
| Metals & Mining ETF | 385,008 | 342,616 | 26,475 | 423,874 | ||||
| Energy ETF | 126,803 | 94,601 | — | — | ||||
| Financials ETF | 46,897 | — | — | — | ||||
| Composite ETF | 358,407 | 282,524 | — | 586,695 | ||||
| Health Care ETF | 30,130 | — | — | — | ||||
| India Consumer ETF | — | — | — | — | ||||
| India Infrastructure ETF | 5,077,656 | 453,269 | — | — | ||||
| India Small Cap ETF | 3,493,209 | 621,350 | — | — | ||||
| Industrials ETF | — | — | — | — | ||||
| Low Volatility Dividend ETF | 371,165 | — | — | — | ||||
| Technology ETF | 49,908 | — | — | — | ||||
| Telecom ETF | 2,382 | — | — | — | ||||
| Utilities ETF | 45,392 | — | — | — | ||||
| * | Capital loss carryforwards for tax years beginning after December 22, 2010 do not expire and are carried forward in character. |
7. FAIR VALUE MEASUREMENT
Financial Accounting Standards Board’s Accounting Standards Codification, Section 820-10, Fair Value Measurements and Disclosures defines fair value, establishes a framework for measuring fair value in accordance with GAAP, and expands disclosure about fair value measurements. It also provides guidance on determining when there has been a significant decrease in the volume and level of activity for an asset or liability, when a transaction is not orderly, and how that information must be incorporated into a fair value measurement. Under Fair Value Measurements and Disclosures, various inputs are used in determining the value of the ETF’s investments. These inputs are summarized in three broad levels as follows:
Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities.
Level 2 — Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument in an inactive market, prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.
Level 3 — Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, represent the ETFs’ own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.
EGA Emerging Global Shares Trust 87
Notes to Financial Statements
(continued)
September 30, 2012 (Unaudited)
The ETFs have adopted the Accounting Standard Update, Fair Value Measurements and Disclosures (Topic 820): Improving Disclosures about Fair Value Measurements which provides guidance on how investment assets and liabilities are to be valued and disclosed. Specifically, the amendment requires reporting entities to disclose: i) the input and valuation techniques used to measure fair value for both recurring and nonrecurring fair value measurements for Level 2 or Level 3 positions; ii) transfers between all levels (including Level 1 and Level 2) are required to be disclosed on a gross basis (i.e. transfers out must be disclosed separately from transfers in) as well as the reason(s) for the transfer; and iii) purchases, sales, issuances and settlements must be shown on a gross basis in the Level 3 roll forward rather than as one net number.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following summarizes inputs used as of September 30, 2012 in valuing the ETFs’ assets and liabilities carried at fair value:
|
Quoted Prices |
||||||||||||||||||||||||
|
in Active Markets (Level 1) |
Other Significant Inputs (Level 2) |
Significant | ||||||||||||||||||||||
| Unobservable | ||||||||||||||||||||||||
| Funds | Common Stocks | Rights | Common Stocks | Rights | Inputs (Level 3) | Total | ||||||||||||||||||
| Basic Materials ETF* | $ | 2,838,689 | $ | — | $ | — | $ | — | $ | — | $ | 2,838,689 | ||||||||||||
| Beyond BRICs ETF* | 7,168,837 | — | — | — | — | 7,168,837 | ||||||||||||||||||
| Brazil Infrastructure ETF** | 69,587,177 | — | — | — | — | 69,587,177 | ||||||||||||||||||
| China Infrastructure ETF** | 10,466,463 | — | — | — | — | 10,466,463 | ||||||||||||||||||
| Consumer Goods ETF* | 2,237,966 | — | — | — | — | 2,237,966 | ||||||||||||||||||
| Consumer Services ETF* | 2,051,122 | — | — | — | — | 2,051,122 | ||||||||||||||||||
| Consumer ETF* | 450,055,887 | — | — | — | — | 450,055,887 | ||||||||||||||||||
| Domestic Demand ETF* | 5,119,491 | — | — | — | — | 5,119,491 | ||||||||||||||||||
| Metals & Mining ETF* | 12,598,685 | — | — | — | — | 12,598,685 | ||||||||||||||||||
| Energy ETF* | 11,914,808 | — | — | — | — | 11,914,808 | ||||||||||||||||||
| Financials ETF* | 3,921,179 | — | — | — | — | 3,921,179 | ||||||||||||||||||
| Composite ETF* | 13,393,230 | 1,589 | — | — | — | 13,394,819 | ||||||||||||||||||
| Health Care ETF* | 2,119,289 | 6,991 | — | — | — | 2,126,280 | ||||||||||||||||||
| India Consumer ETF** | 2,233,082 | — | — | — | — | 2,233,082 | ||||||||||||||||||
| India Infrastructure ETF** | 59,284,971 | — | — | — | — | 59,284,971 | ||||||||||||||||||
| India Small Cap ETF** | 24,488,785 | — | — | — | 184,945 | 24,673,730 | ||||||||||||||||||
| Industrials ETF* | 2,818,840 | — | — | — | — | 2,818,840 | ||||||||||||||||||
| Low Volatility Dividend ETF* | 81,674,960 | — | — | — | — | 81,674,960 | ||||||||||||||||||
| Technology ETF* | 1,817,185 | — | — | — | — | 1,817,185 | ||||||||||||||||||
| Telecom ETF* | 4,135,618 | — | — | — | — | 4,135,618 | ||||||||||||||||||
| Utilities ETF* | 2,593,248 | — | — | — | † | — | 2,593,248 | |||||||||||||||||
| * | Please refer to the schedule/consolidated schedule of investments to view securities segregated by country. |
| ** | Please refer to the schedule/consolidated schedule of investments to view securities segregated by industry type. |
| † | Includes Level 2 security valued at $0. |
88 EGA Emerging Global Shares Trust
Notes to Financial Statements
(continued)
September 30, 2012 (Unaudited)
Reconciliation of the investment in which significant unobservable inputs (Level 3) were used in determining the fair value of Nagarjuna Fertilizers & Chemicals, Ltd. in the India Small Cap ETF during the period ended September 30, 2012:
| Common Stocks | |||
| India Small Cap ETF | Chemicals | ||
| Balance as of March 31, 2012 | $ | 191,480 | |
| Realized gain (loss) 1 | — | ||
| Change in unrealized appreciation (depreciation) 2 | (6,535 | ) | |
| Purchases | — | ||
| Sales | — | ||
| Transfers into Level 3 3 | — | ||
| Transfers out of Level 3 4 | — | ||
| Balance as of September 30, 2012 | $ | 184,945 | |
| Net change in unrealized appreciation (depreciation) from investments still held as of September 30, 2012 is: | $ | (6,535 | ) |
| 1 | This amount is included in net realized gain (loss) from investment transactions in the Statement of Operations. |
| 2 | This amount is included in the net change in unrealized appreciation (depreciation) from investment transactions in the Statement of Operations. Change in unrealized appreciation (depreciation) includes net unrealized appreciation (depreciation) resulting from changes in investment values during the period and the reversal of previously recorded unrealized appreciation (depreciation) when gains or losses are realized. |
| 3 | Transfers into Level 3 are as a result of the unavailability of a quoted price in an active market for an identical investment or the unavailability of other significant observable inputs. |
| 4 | Transfers out of Level 3 are as a result of the availability of a quoted price in an active market for an identical investment or the availability of other significant observable inputs. |
To estimate fair value, an industry standard valuation methodology was used based on market approach. The significant input for the valuation methodology for the India Small Cap ETF, after consideration of quantitative and fundamental factors, was based on last available trading price, adjusted for a spun-off security.
Each Fund values its investments at fair value pursuant to procedures adopted by the Trust’s Board of Trustees (the “Board”) if (1) market quotations are insufficient or not readily available or (2) the Emerging Global Advisors (“EGA”) believes that the values available are unreliable. The Trust’s Valuation Committee (the “Committee”) performs certain functions as they relate to the administration and oversight of the Fund’s valuation procedures. Under these procedures, the Committee convenes on a regular and ad-hoc basis to review such securities and considers a number of factors, including valuation methodologies and significant unobservable inputs, when arriving at fair value.
In determining fair valuations, inputs may include market-based analytics, which may consider related or comparable assets or liabilities, recent transactions, market multiples, book values and other relevant investment information. Discounts may be applied based on the nature or duration of any restrictions on the disposition of the investments. The Committee performs regular reviews of valuation methodologies, key inputs and assumptions, disposition analysis and market activity.
Due to the inherent uncertainty of valuations, fair values may differ significantly from the values that would have been used had an active market existed. Fair valuation could result in a different NAV than a NAV determined by using market quotes.
The following is a summary of the significant unobservable inputs used as of September 30, 2012 in valuing Level 3 securities:
Significant changes in any of the unobservable inputs may significantly impact the fair value measurement. A significant increase (decrease) in the price of parent company may result in a corresponding increase (decrease) in fair value.
EGA Emerging Global Shares Trust 89
Notes to Financial Statements
(continued)
September 30, 2012 (Unaudited)
8. INVESTMENT TRANSACTIONS
The table below displays each ETF’s investment transactions during the period ended September 30, 2012. The Purchase column represents the aggregate purchases of investments excluding cost of in-kind purchases and short-term investments. The Sales column represents the aggregate sales of investments excluding proceeds from in-kind sales and short-term investments. Purchases In-Kind are the aggregate of all in-kind purchases and Sales In-Kind are the aggregate of all proceeds from in-kind sales. The transactions for each of these categories are as follows:
| Funds | Purchases | Sales | Purchases In-Kind | Sales In-Kind | ||||
| Basic Materials ETF | $ | 546,238 | $ | 301,760 | $ | 1,834,241 | $ | 593,813 |
| Beyond BRICs ETF | 5,336,054 | 41,920 | 1,746,430 | — | ||||
| Brazil Infrastructure ETF | 13,775,809 | 19,961,563 | — | — | ||||
| China Infrastructure ETF | 2,301,976 | 2,083,739 | 476,198 | 2,069,190 | ||||
| Consumer Goods ETF | 378,590 | 96,230 | 840,632 | 58,949 | ||||
| Consumer Services ETF | 487,311 | 265,014 | 768,052 | 30,865 | ||||
| Consumer ETF | 57,794,501 | 34,589,322 | 48,037,875 | 17,766,157 | ||||
| Domestic Demand ETF | 5,020,526 | 26,203 | — | — | ||||
| Metals & Mining ETF | 1,325,596 | 1,104,603 | — | — | ||||
| Energy ETF | 1,235,457 | 939,314 | 953,480 | 17,805 | ||||
| Financials ETF | 644,514 | 586,482 | 1,683,613 | 1,739,164 | ||||
| Composite ETF | 1,403,711 | 1,192,113 | 233,694 | 245,243 | ||||
| Health Care ETF | 191,747 | 167,025 | 47,219 | 80,674 | ||||
| India Consumer ETF | 47,358 | 18,263 | — | — | ||||
| India Infrastructure ETF | 12,109,817 | 11,582,451 | — | — | ||||
| India Small Cap ETF | 203,304 | 1,884,211 | — | — | ||||
| Industrials ETF | 1,015,366 | 741,084 | 1,224,298 | 615,643 | ||||
| Low Volatility Dividend ETF | 66,340,617 | 51,505,302 | 34,776,419 | 23,174,632 | ||||
| Technology ETF | 248,027 | 212,245 | 26,372 | 66,898 | ||||
| Telecom ETF | 644,005 | 484,702 | 932,453 | 25,608 | ||||
| Utilities ETF | 432,526 | 405,874 | 29,421 | 32,231 | ||||
9. INVESTMENT ADVISORY AND OTHER AGREEMENTS
The Trust has entered into an Investment Advisory Agreement (the “Advisory Agreement”) with ALPS Advisors, Inc. (“ALPS” or the “Adviser”). The Adviser acts as the ETFs’ investment adviser pursuant to an advisory agreement with the Trust on behalf of the ETFs. Pursuant to the Advisory Agreement, the Adviser has overall supervisory responsibility for the general management and investment of each ETF’s securities portfolio, and has ultimate responsibility (subject to oversight by the Trust’s Board of Trustees) for oversight of the Trust’s sub-adviser. For its services, the Trust pays the Adviser an annual management fee, accrued daily at the rate of 1/365th of the applicable advisory fee rate and payable monthly as soon as practicable after the last day of each month. The annual management fee for the following ETFs consists of the greater of $400,000 or 0.10% of each ETF’s average daily net assets during the month, but not to exceed $1,000,000 per year:
| Basic Materials ETF | Brazil Infrastructure ETF |
| China Infrastructure ETF | Consumer ETF |
| Metals & Mining ETF | Energy ETF |
| Financials ETF | Composite ETF |
| Health Care ETF | India Infrastructure ETF |
| India Small Cap ETF | Industrials ETF |
In addition, the annual management fee for the ETFs listed below consist of the greater of $400,000 plus $33,333.33 per ETF minus any management fees paid to the Adviser by the ETFs detailed above, or 0.10% of the average daily net assets of each ETF listed below, but not to exceed annually $1,000,000 plus $83,333.33 for each ETF minus any management fees paid to the Adviser by the ETFs detailed above:
| Beyond BRICs ETF | Consumer Goods ETF |
| Consumer Services ETF | Domestic Demand ETF |
| India Consumer ETF | Low Volatility Dividend ETF |
| Technology ETF | Telecom ETF |
| Utilities ETF |
From time to time, the Adviser may waive all or a portion of its fee.
90 EGA Emerging Global Shares Trust
Notes to Financial Statements
(continued)
September 30, 2012 (Unaudited)
Emerging Global Advisors, LLC (“EGA”) serves as the sub-adviser to the ETFs and provides investment advice and management services to the ETFs. EGA supervises the day-to-day investment and reinvestment of the assets in each ETF and is responsible for designating the Deposit Securities and for monitoring each ETF’s adherence to its investment mandate. For its investment sub-advisory services, EGA receives from the ETFs an annual fee equal to 0.75% of the average daily net assets of Composite ETF, 0.89% of average daily net assets of India Consumer ETF and 0.85% of the average daily net assets of each of the other ETFs.
The Trust and EGA have entered into a written fee waiver and expense reimbursement agreement pursuant to which EGA has agreed to reduce and/or reimburse expenses to the extent necessary to prevent the annual operating expenses of each ETF (excluding any taxes, interest, brokerage fees and non-routine expenses) from exceeding 0.85% of average daily net assets (0.75% for Composite ETF and 0.89% for India Consumer ETF) at least until July 31, 2013. Under this fee waiver and expense assumption agreement, EGA retains the right to seek reimbursement from each ETF of fees previously waived or expenses previously assumed to the extent such fees were waived or expenses were assumed within three years of such reimbursement, and provided such reimbursement does not cause an ETF to exceed any applicable fee waiver or expense limitation agreement that was in place at the time the fees were waived or expenses assumed.
On July 19, 2011, ALPS Holdings, Inc. (“ALPS Holdings”), parent company to ALPS Advisors, announced that it signed a definitive agreement to be acquired by DST Systems, Inc. (“DST”) through a merger with a wholly owned DST subsidiary (the “Transaction”). On October 31, 2011, the Transaction was completed. Under the Investment Company Act of 1940, as amended (the “1940 Act”), completion of the Transaction caused the automatic termination of each Fund’s prior investment advisory agreement with the Adviser. In order for the management of each Fund to continue uninterrupted, the Board of Trustees of each Fund (the “Board”) approved a new investment advisory agreement with the Adviser (the “New Advisory Agreement”) on July 28, 2011, subject to shareholder approval.
On September 27, 2011, a special meeting of shareholders of the Funds (the “Special Meeting”) was called to consider the approval of the New Advisory Agreement. The Special Meeting was adjourned until November 22, 2011 for those Funds for which shareholder approval of the New Advisory Agreement had not yet been obtained (the “Remaining Funds”). At a meeting on October 27, 2011, the Board approved an interim investment advisory agreement with ALPS Advisors (the “Interim Advisory Agreement”) pursuant to Rule 15a-4 under the 1940 Act for the Remaining Funds. The Interim Advisory Agreement for each Remaining Fund took effect upon the consummation of the Transaction on October 31, 2011.
At the reconvened Special Meeting on November 22, 2011, the New Investment Advisory Agreement was approved by shareholders for each Remaining Fund except EGShares China Infrastructure ETF, EGShares India Small Cap ETF and EGShares Brazil Infrastructure ETF, for which the requisite shareholder vote had not yet been obtained. These Funds continued to operate under the Interim Advisory Agreement. A subsequent meeting of shareholders was held on February 29, 2012, at which time the New Investment Advisory Agreement was approved for EGShares China Infrastructure ETF, EGShares India Small Cap ETF and EGShares Brazil Infrastructure ETF.
EGA Emerging Global Shares Trust 91
Notes to Financial Statements
(continued)
September 30, 2012 (Unaudited)
The amounts EGA reimbursed, the amounts available for potential future recoupment by EGA and the expiration schedule at September 30, 2012 are as follows:
| Total Potential | ||||||||||||||||||||||||
| Expenses | Potential Recoupment Amounts Expiring | Recoupment | ||||||||||||||||||||||
| Funds | Reimbursed/Waived | March 31, 2013 | March 31, 2014 | March 31, 2015 | September 30, 2015 | Amount | ||||||||||||||||||
| Basic Materials ETF | $ | 56,885 | $ | — | $ | — | $ | 64,900 | $ | 56,885 | $ | 121,785 | ||||||||||||
| Beyond BRICs ETF | 12,129 | — | — | — | 12,129 | 12,129 | ||||||||||||||||||
| Brazil Infrastructure ETF | 260,410 | 32,912 | 478,083 | 504,255 | 260,410 | 1,275,660 | ||||||||||||||||||
| China Infrastructure ETF | 103,527 | 34,768 | 247,399 | 194,340 | 103,527 | 580,034 | ||||||||||||||||||
| Consumer Goods ETF | 63,972 | — | — | 76,800 | 63,972 | 140,772 | ||||||||||||||||||
| Consumer Services ETF | 41,760 | — | — | 47,875 | 41,760 | 89,635 | ||||||||||||||||||
| Consumer ETF | 903,037 | — | 403,405 | 1,195,954 | 903,037 | 2,502,396 | ||||||||||||||||||
| Domestic Demand ETF | 15,810 | — | — | — | 15,810 | 15,810 | ||||||||||||||||||
| Metals & Mining ETF | 112,671 | 344,869 | 301,755 | 251,382 | 112,671 | 1,010,677 | ||||||||||||||||||
| Energy ETF | 112,398 | 318,362 | 202,602 | 249,227 | 112,398 | 882,589 | ||||||||||||||||||
| Financials ETF | 99,586 | 125,612 | 207,810 | 191,473 | 99,586 | 624,481 | ||||||||||||||||||
| Composite ETF | 127,256 | 302,447 | 355,407 | 252,669 | 127,256 | 1,037,779 | ||||||||||||||||||
| Health Care ETF | 58,571 | — | — | 70,782 | 58,571 | 129,353 | ||||||||||||||||||
| India Consumer ETF | 62,576 | — | — | 98,710 | 62,576 | 161,286 | ||||||||||||||||||
| India Infrastructure ETF | 170,075 | — | 381,030 | 577,187 | 170,075 | 1,128,292 | ||||||||||||||||||
| India Small Cap ETF | 135,194 | — | 356,162 | 399,568 | 135,194 | 890,924 | ||||||||||||||||||
| Industrials ETF | 61,139 | — | — | 69,310 | 61,139 | 130,449 | ||||||||||||||||||
| Low Volatility Dividend ETF | 180,617 | — | — | 189,604 | 180,617 | 370,221 | ||||||||||||||||||
| Technology ETF | 69,316 | — | — | 71,813 | 69,316 | 141,129 | ||||||||||||||||||
| Telecom ETF | 59,508 | — | — | 70,518 | 59,508 | 130,026 | ||||||||||||||||||
| Utilities ETF | 59,185 | — | — | 74,475 | 59,185 | 133,660 | ||||||||||||||||||
The Bank of New York Mellon serves as the ETFs’ Administrator, Custodian, Fund Accountant and Transfer Agent pursuant to a Fund Administration and Accounting Agreement, a Custody Agreement and a Transfer Agency and Service Agreement, as the case may be.
ALPS Fund Services, Inc. (“AFS”), an affiliate of the Adviser and the Distributor, provides a Chief Compliance Officer and an Anti-Money Laundering Officer as well as certain additional compliance support functions under a Compliance Services Agreement. AFS also provides a Principal Financial Officer to the Trust under a PFO Services Agreement. As compensation for the foregoing services, AFS receives certain out of pocket costs, and fixed and asset-based fees, which are accrued daily and paid monthly by the ETFs. Compensation for such services is included under the Advisory Agreement.
10. CREATION AND REDEMPTION TRANSACTIONS
The ETFs issue and redeem Shares on a continuous basis at NAV in blocks of 50,000 shares called “Creation Units.” Except when aggregated in Creation Units, shares are not redeemable securities of an ETF.
Only “Authorized Participants” may purchase or redeem shares directly from an ETF. An Authorized Participant is either (i) a broker-dealer or other participant in the clearing process through the Continuous Net Settlement System of the National Securities Clearing Corporation or (ii) a DTC participant and, in each case, must have executed a Participant Agreement with Distributors. Most retail investors will not qualify as Authorized Participants or do not have the resources to buy and sell whole Creation Units. Therefore, they will be unable to purchase or redeem the shares directly from the ETFs. Rather, most retail investors will purchase shares in the secondary market with the assistance of a broker and will be subject to customary brokerage commissions or fees.
Except as discussed below, the consideration for the purchase of Creation Units of an ETF generally consists of the in-kind deposit of a designated portfolio of equity securities, which constitutes an optimized representation of the corresponding Index and an amount of cash. The consideration for the purchase of Creation Units of the Brazil Infrastructure ETF consists solely or partially for cash in U.S. dollars. The consideration for the purchase of Creation Units of an ETF that invests its assets in a wholly owned subsidiary in Mauritius will consist solely or partially for cash in U.S. dollars based on the number of Indian securities included in an ETF’s corresponding Underlying Index. Investors transacting in Creation Units for cash pay an additional variable charge to compensate the relevant ETF for brokerage and market impact expenses relating to investing in portfolio securities.
92 EGA Emerging Global Shares Trust
Notes to Financial Statements
(concluded)
September 30, 2012 (Unaudited)
11. TRUSTEES’ FEES
The Trust compensates each Trustee who is not an employee of the Adviser, EGA or its affiliates. The interested Trustees do not receive any compensation from the Trust for serving as Trustees.
12. NEW ACCOUNTING PRONOUNCEMENTS
In April 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-03 “Reconsideration of Effective control for Repurchase Agreements”. The objective of ASU 2011-03 is to improve the accounting for repurchase agreements and other agreements that both entitle and obligate a transferor to repurchase or redeem financial assets before their maturity. Under previous guidance, whether or not to account for a transaction as a sale was based on, in part, if the entity maintained effective control over the transferred financial assets. ASU 2011-03 removes the transferor’s ability criterion from the effective control assessment. This guidance is effective prospectively for interim and annual reporting periods beginning on or after December 15, 2011. At this time, management is evaluating the implications of ASU No. 2011-03 and its impact on the financial statements has not been determined.
In May 2011, the FASB issued ASU No. 2011-04 “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs”. ASU 2011-04 includes common requirements for measurement of and disclosure about fair value between U.S. GAAP and IFRS. ASU 2011-04 will require reporting entities to disclose the following information for fair value measurements categorized within Level 3 of the fair value hierarchy: quantitative information about the unobservable inputs used in the fair value measurement, the valuation processes used by the reporting entity and a narrative description of the sensitivity of the fair value measurement to changes in unobservable inputs and the interrelationships between those unobservable inputs. In addition, ASU 2011-04 will require reporting entities to make disclosures about amounts and reasons for all transfers in and out of Level 1 and Level 2 fair value measurements. The new and revised disclosures are effective for interim and annual reporting periods beginning after December 15, 2011. Management is currently evaluating the implications of ASU No. 2011-04 and its impact on the financial statements.
In December 2011, the Financial Accounting Standards Board issued Accounting Standards Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities (“ASU 2011-11”). ASU 2011-11 requires disclosures to make financial statements that are prepared under U.S. GAAP more comparable to those prepared under International Financial Reporting Standards. The new disclosure requirements mandate that entities disclose both gross and net information about instruments and transactions eligible for offset in the statement of assets and liabilities as well as instruments and transactions subject to an agreement similar to a master netting arrangement. In addition, ASU 2011-11 requires disclosure of collateral received and posted in connection with master netting agreements or similar arrangements. New disclosures are required for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. Management is evaluating the impact of ASU 2011-11 on the financial statements and disclosures.
13. SUBSEQUENT EVENTS
The ETFs have evaluated subsequent events through the date of issuance of this report and have determined; there are no material events that impacted the ETFs’ financial statements.
EGA Emerging Global Shares Trust 93
Board Review and Approval of Advisory Contracts (Unaudited)
Investment Advisory Agreement with EGA for New Funds
At the August 23, 2012 Board of Trustees (the “Board”) meeting (the “Meeting”), the Board, including those Trustees who are not “interested persons” (as that term is defined in the Investment Company Act of 1940, as amended (“1940 Act”)) of the Trust (the “Independent Trustees”), approved EGA to serve as investment adviser to EGShares Emerging Markets Core ETF, EGShares Emerging Markets Core Dividend ETF and EGShares Emerging Markets Core Balanced ETF (the “New Funds”) and approved the investment advisory agreement (the “Investment Advisory Agreement”) between EGA and the Trust with respect to each New Fund, for the period August 23, 2012 until August 23, 2013. In connection with considering approval of the Investment Advisory Agreement, the Independent Trustees met in executive session with independent counsel, who provided assistance and advice.
In considering the approval of the Investment Advisory Agreement, the Independent Trustees reviewed the materials provided for the Meeting by EGA, including: (i) a copy of the Investment Advisory Agreement with EGA and any amendments thereto; (ii) information describing the nature, quality, and extent of the services that EGA provides to the New Funds, and the fees that EGA charges for such services; (iii) information concerning the business, operations and compliance program of EGA; (iv) a copy of the current Form ADV for EGA; and (v) a memorandum from Stradley Ronon on the responsibilities of trustees in considering investment advisory arrangements under the 1940 Act. In addition, the Independent Trustees received data compiled by ETF Database comparing the advisory fees and expenses of the New Funds with fees and expenses of other ETFs with similar investment objectives and policies.
During their review of this information, the Independent Trustees focused on and analyzed the factors that the Independent Trustees deemed relevant, including: the nature, quality, and extent of the services provided to each New Fund by EGA; the personnel and operations of EGA; the profitability to EGA under the Investment Advisory Agreement; any “fall-out” benefits to EGA (i.e., the ancillary benefits realized due to a relationship with the Trust); and possible conflicts of interest.
In particular, the Board considered and reviewed the following with respect to each New Fund:
(a) The nature, extent, and quality of services to be provided to the New Funds by EGA. The Board reviewed the services that EGA would provide to the New Funds. In connection with the investment advisory services to be provided to the New Funds, the Board noted the significant responsibilities that EGA would have as the New Funds’ investment adviser, including: implementation of the investment management program of each New Fund; management of the day-to-day investment and reinvestment of the assets in each New Fund; determining daily baskets of deposit securities and cash components; executing portfolio security trades for purchases and redemptions of New Fund shares conducted on a cash-in-lieu basis; making determinations with respect to alternative cash management vehicles and securities lending collateral investments; management of intermediate Mauritius entities for those New Funds with significant investments in India; and oversight of general portfolio compliance with relevant law.
The Board reviewed EGA’s experience, resources, strengths and its performance as a sub-adviser to the series of the Trust that are currently operating (the “Operational Funds”). Based on their consideration and review of the foregoing information, the Board determined that the New Funds were likely to benefit from the nature, quality, and extent of these services, as well as EGA’s ability to render such services based on its experience, operations and resources.
(b) Comparison of services to be provided and fees to be charged by EGA and other investment advisers to similar clients, and the cost of the services to be provided and profits to be realized by EGA from the relationship with the New Funds. The Board compared both the services to be rendered and the proposed fees to be paid for investment advisory services to those of other investment advisers of similar ETFs. In particular, the Board compared each New Fund’s proposed advisory fee and projected expense ratio for the first year of operations to other ETFs considered to be in each New Fund’s peer group, as chosen by ETF Database, including the Operational Funds of the Trust. The Board noted that Emerging Markets Core Dividend ETF’s proposed management fee and expenses (after giving effect to the proposed Expense Cap Agreement) was at the top of the range of its peer group. The Board also noted that Emerging Markets Core ETF’s and Emerging Markets Core Balanced ETF’s proposed management fee and expenses (after giving effect to the proposed Expense Cap Agreement) was within the range of their respective peer groups.
The Board noted that the proposed investment advisory fees for the EGShares Emerging Markets Core ETF, EGShares Emerging Markets Core Dividend ETF and EGShares Emerging Markets Core Balanced ETF were reasonable when compared with other funds in each New Fund’s peer group, as chosen by ETF Database. The Board also noted that the projected total expenses (including the proposed Expense Cap Agreement) of the New Funds were reasonable when compared with other funds in each New Fund’s peer group, as chosen by ETF Database.
The Board considered the appropriateness of the proposed investment advisory fees and expense ratios of the New Funds compared to the fees and expenses of similar ETFs. The Board took into consideration the composition of the peer groups selected by ETF Database. The Board received information regarding the anticipated costs, including operational costs, and projected profitability of EGA in connection with its serving as investment adviser to each New Fund. The Board also received information about the additional costs of operating the New Funds that will invest in a related Mauritius Company in order to invest directly in Indian companies. The Board noted EGA’s commitment initially to limit each New Fund’s expenses through a written Expense Cap Agreement with the Trust, including the circumstances in which the Trust would have to repay fees in excess of the expense cap that were borne by EGA.
94 EGA Emerging Global Shares Trust
Board Review and Approval of Advisory Contracts (Unaudited) (concluded)
The Board compared each New Fund’s proposed fee and expenses with those of other ETFs in the New Fund’s peer group, as well as with the other currently Operational Funds. The Board also considered those New Funds whose fees and expenses were in the maximum range compared to their peer groups. The Board further considered the nature, quality, and extent of services proposed to be provided by EGA, the costs expected to be incurred by EGA in rendering those services, and EGA’s capping of the New Funds’ expenses. Based on the foregoing, the Board concluded that the fee proposed to be paid to EGA with respect to each New Fund was fair and reasonable.
(c) EGA’s profitability and the extent to which economies of scale would be realized as each New Fund grows and whether fee levels would reflect such economies of scale. The Board discussed potential economies of scale. The Board considered that the New Funds were not expected to be profitable to EGA until they reached an adequate size, but that EGA had sufficient financial resources to support the New Funds while they accumulated adequate assets. The Board was informed that EGA would consider addressing economies of scale when assets under management reached appropriate levels.
(d) Investment performance of EGA. Because the New Funds had not commenced operations, the Board could not consider the investment performance of the New Funds, but did take into account the investment performance of the Operational Funds of the Trust, for which EGA is responsible for the day-to-day portfolio management.
Based on the presentations and discussions at the Meeting, and such other matters as were deemed relevant, such as the proposed Expense Cap Agreement, the Board concluded that the proposed investment advisory fees and projected total expense ratios are reasonable in relation to the services to be provided by EGA to the New Funds, as well as the costs to be incurred and benefits to be gained by EGA in providing such services. As a result, the Board decided to approve the Investment Advisory Agreement with EGA and to appoint EGA as the investment adviser to the New Funds. No single factor was determinative to the decision of the Board.
EGA Emerging Global Shares Trust 95
Board of Trustees and Officers (Unaudited)
The Trustees and officers of the Trust, along with their principal occupations over the past five years and their affiliations, if any, with EGA, are listed below. Unless otherwise noted, the address of each Trustee of the Trust is 171 East Ridgewood Ave., Ridgewood, NJ 07450.
| Name and Year of Birth |
Position(s)
Held with Trust |
Term of
Office 1 and Length of Time Served |
Principal Occupation(s)
During Past 5 Years |
Number of
Portfolios in Fund Complex 2 Overseen by Trustee |
Other
Directorships Held by Trustee |
|||||||
| Independent Trustees | ||||||||||||
| Robert Willens, 1946 | Trustee | Since 2009 | Robert Willens, LLC (tax consulting), | 45 | Daxor Corp. | |||||||
| President, since January, 2008; Lehman | (Medical Products | |||||||||||
| Brothers, Inc., Managing Director, Equity | and | |||||||||||
| Research Department, January 2004 to | Biotechnology), | |||||||||||
| January 2008. | since 2004. | |||||||||||
| Ron Safir, 1951 | Trustee | Since 2009 | Retired, since 2008; UBS Wealth | 45 | None | |||||||
| Management, Chief Administrative Officer, | ||||||||||||
| February 1971 to December 2008. | ||||||||||||
| Jeffrey D. Haroldson, 1957 | Trustee | Since 2009 | HDG Mansur Capital Group, LLC, | 45 | None | |||||||
| (international real estate company) President | ||||||||||||
| and Chief Operating Officer, since 2004; | ||||||||||||
| HSBC Securities (USA), Inc., Executive | ||||||||||||
| Managing Director, Head of Investment and | ||||||||||||
| Merchant Banking, 2000 to 2003. | ||||||||||||
| Interested Trustees | ||||||||||||
| Robert C. Holderith 3 , 1960 | Trustee and | Since 2008 | Emerging Global Advisors, LLC, Managing | 45 | None | |||||||
| President | Member and Chief Executive Officer, since | |||||||||||
| September 2008; ProFund Advisors, | ||||||||||||
| Managing Director, Institutional Sales & | ||||||||||||
| Investment Analytics, June 2006 to August | ||||||||||||
| 2008; UBS Financial Services, Inc., Director, | ||||||||||||
| January 2000 to May 2006. | ||||||||||||
| James J. Valenti 3 , 1947 | Trustee and | Since 2008 | Emerging Global Advisors, LLC, Member | 45 | None | |||||||
| Secretary | and Chief Administrative Officer, since | |||||||||||
| September 2008; Private Investor and | ||||||||||||
| Independent Consultant, June 2007 to | ||||||||||||
| September 2008; Senior Loan Consultant, | ||||||||||||
| Bridgepoint Mortgage Company, June 2006 | ||||||||||||
| to June 2007; Mercedes Benz, North | ||||||||||||
| America, Sales Representative, November | ||||||||||||
| 2000 to June 2006. | ||||||||||||
| 1 | Each Trustee holds office for an indefinite term. |
| 2 | The “Fund Complex” consists of the Trust, which consists of forty-five Funds. |
| 3 | Mr. Holderith and Mr. Valenti are considered to be “interested persons” of the Trust as defined in the 1940 Act, due to their relationship with EGA, the Funds’ sub-adviser. |
96 EGA Emerging Global Shares Trust
Board of Trustees and Officers (Unaudited) (concluded)
| Name and Year of Birth |
Position(s)
Held with the Trust |
Term of Office
1
and Length of Time Served |
Principal Occupation(s) During Past 5 Years | |||
| Officers | ||||||
| Marten S. Hoekstra | Executive | Since 2011 | Chief Executive Officer, Emerging Global Advisors, LLC, since January 2011; | |||
| Emerging Global | Vice | Board of Directors, Securities Industry and Financial Markets Association, | ||||
| Advisors, LLC | President | 2006–2011; UBS (and its predecessor, PaineWebber), 1983–2009 (including | ||||
| 171 East Ridgewood Ave. | various executive positions starting in 2001). | |||||
| Ridgewood, NJ 07450 | ||||||
| 1960 | ||||||
| Thomas A. Carter | Treasurer | Since 2009 | Mr. Carter joined ALPS Fund Services, Inc. (“ALPS Fund Services”) in 1994 and | |||
| ALPS Fund Services, Inc. | is currently President and Director of ALPS Advisors, Inc. (“AAI”), ALPS | |||||
| 1290 Broadway | Distributors, Inc. (“ADI”) and FTAM Funds Distributor, Inc. and Executive Vice | |||||
| Suite 1100 | President and Director of ALPS Fund Services and ALPS Holdings, Inc. | |||||
| Denver, CO 80203 | ||||||
| 1966 | ||||||
| Melanie H. Zimdars | Chief | Since 2010 | ALPS Fund Services, Inc., Deputy Chief Compliance Officer, since September | |||
| ALPS Fund Services, Inc. | Compliance | 2009; ALPS ETF Trust, Chief Compliance Officer, since December 2009; EGA | ||||
| 1290 Broadway | Officer | Emerging Global Shares Trust, Chief Compliance Officer, since March 2010; | ||||
| Suite 1100 | Financial Investors Variable Insurance Trust, Chief Compliance Officer, since | |||||
| Denver, CO 80203 | September 2009; BPV Family of Funds, Chief Compliance Officer since | |||||
| 1976 | September 2011; Liberty All-Star Growth Fund, Inc., Chief Compliance Officer, | |||||
| since December 2009; Liberty All-Star Equity Fund, Chief Compliance Officer, | ||||||
| since December 2009; Wasatch Funds, Principal Financial Officer, Treasurer and | ||||||
| Secretary, February 2007 to December 2008; Wasatch Funds, Assistant Treasurer, | ||||||
| November 2006 to February 2007; Wasatch Funds, Senior Compliance Officer, | ||||||
| 2005 to December 2008. | ||||||
| 1 | Officers of the Trust are elected by the Trustees and serve at the pleasure of the Board. |
EGA Emerging Global Shares Trust 97
General Information (Unaudited)
Investment Advisor
ALPS Advisors, Inc.
1290 Broadway, Suite 1100
Denver, CO 80203
Sub-Adviser
Emerging Global Advisors, LLC
171 East Ridgewood Ave.
Ridgewood, NJ 07450
Distributor
ALPS Distributors, Inc.
1290 Broadway, Suite 1100
Denver, CO 80203
Administrator, Custodian and Transfer Agent
The Bank of New York Mellon
101 Barclay Street
New York, NY 10286
Independent Registered Public Accounting Firm
BBD, LLP
1835 Market Street, 26th Floor
Philadelphia, PA 19103
You may obtain a description of the EGA Funds proxy voting, policies, procedures and information regarding how each Fund voted proxies relating to portfolio securities during the most recent 12-month period ending June 30 (available by August 31) without charge, upon request, by calling 1-888-800-4347 or visiting the funds website www.egshares.com, or by accessing the SEC’s website at www.sec.gov. Such reports may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 202-942-8090.
Each of the Funds’ premium/discount information that is current as of the most recent quarter-end is available by visiting www.egshares.com or by calling 1-201-389-6872.
The Trust files complete schedules of the portfolio holdings with the SEC for the first and third quarters on Form N-Q. The Form N-Q is available without charge, upon request, by calling 1-800-SEC-0330, or by accessing the SEC’s website, at www.sec.gov. It may also be reviewed and copied at the SEC’s Public Reference Room in Washington, DC.
This report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by an effective prospectus, which includes information regarding the Funds’ objectives and polices, experience of its management, marketability of shares and other information.
98 EGA Emerging Global Shares Trust
171 East Ridgewood Avenue
Ridgewood, NJ 07450
(201) 389-6872
155 West 19th Street, 3rd Floor
New York, NY 10011
(888) 800-4EGS (4347)
www.egshares.com
EGA Emerging Global Shares Trust
EGShares Basic Materials GEMS ETF
EGShares Beyond BRICs ETF
EGShares Brazil Infrastructure ETF
EGShares China Infrastructure ETF
EGShares Consumer Goods GEMS ETF
EGShares Consumer Services GEMS ETF
EGShares Emerging Markets Consumer ETF
EGShares Emerging Markets Domestic Demand ETF
EGShares Emerging Markets Metals & Mining ETF
EGShares Energy GEMS ETF
EGShares Financials GEMS ETF
EGShares GEMS Composite ETF
EGShares Health Care GEMS ETF
EGShares India Consumer ETF
EGShares India Infrastructure ETF
EGShares India Small Cap ETF
EGShares Industrials GEMS ETF
EGShares Low Volatility Emerging Markets Dividend ETF
EGShares Technology GEMS ETF
EGShares Telecom GEMS ETF
EGShares Utilities GEMS ETF
EGShares are distributed by ALPS Distributors Inc.
Item 2. Code of Ethics.
Not Applicable for the semi-annual reporting period.
Item 3. Audit Committee Financial Expert.
Not Applicable for the semi-annual reporting period.
Item 4. Principal Accountant Fees and Services.
Not Applicable for the semi-annual reporting period.
Item 5. Audit Committee of Listed Registrants.
Not Applicable for the semi-annual reporting period.
Item 6. Schedule of Investments.
| (a) | Schedule is included as part of the report to shareholders filed under Item 1 of this Form. |
| (b) | Not Applicable. |
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not Applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not Applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company & Affiliated Purchasers.
Not Applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
Not Applicable.
Item 11. Controls and Procedures.
(a) The Chief Executive Officer and Chief Financial Officer have evaluated the Registrant's disclosure controls and procedures within 90 days of the filing date of this report and have concluded that these controls and procedures are effective.
(b) There were no significant changes in the Registrant's internal controls over financial reporting or in other factors that could significantly affect these controls subsequent to the date of their evaluation.
Item 12. Exhibits.
(a) Any code of ethics, or amendment
thereto, that is the subject of the disclosure required by
Item 2, to the extent that the Registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not applicable
at this time.
(b) Certifications for each Principal Executive Officer and Principal Financial Officer of the Registrant as required by Rule 30a-2(a) under the 1940 Act (17CFR 270.30a-(a)).
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant: EGA Emerging Global Shares Trust
By: /s/ Robert C. Holderith
Robert C. Holderith, Chief Executive Officer
Date: December 6, 2012
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
Registrant: EGA Emerging Global Shares Trust
By: /s/ Robert C. Holderith
Robert C. Holderith, Chief Executive Officer
Date: December 6, 2012
By: /s/ Thomas A. Carter
Thomas A. Carter, Chief Financial Officer
Date: December 6, 2012
1 Year Egshares Emerging Markets Metals & Mining Etf Chart |
1 Month Egshares Emerging Markets Metals & Mining Etf Chart |
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