Also noteworthy is that Old Mutual Global Index Trackers is offering the fund on a “zero fee, zero cost” basis for a limited time. Under this offer the firm is keeping the fund’s operating expenses (except those related to brokerage, transactions, taxes, litigation and other extraordinary expenses) at zero basis points up to the end of January 2010, or until the fund accrues $1 billion in net assets – whichever is earlier.

According to the firm this arrangement makes the ETF a “world first” as the first emerging market fund with this kind of zero cost waiver.

“This is the first emerging market ETF managed from an emerging market. Emerging market earnings have posted strong growth throughout this decade relative to the developed markets and we believe this is a long-term trend,” said Thabo Dloti, chief executive of Old Mutual Investment Group, the asset management business within which Old Mutual Global Index Trackers sits.

“We also noticed that many large financial services groups were charging far more in the US for emerging markets ETFs than for standard domestic ETFs, and that tracking errors for the emerging market ETFs were high. We realised there was an opportunity we could exploit due to our low costs and history of low tracking errors.  We are committed to being the low-cost provider of choice for emerging markets exposure.”

Old Mutual Global Index Trackers said it plans to list up to four further global and emerging market ETFs in the US in the early part of next year. It also has similar products for Europe and South Africa lined-up for a later stage.