State Street Global Advisors (SSgA) launched the SPDR S&P Small Cap Emerging Asia Pacific ETF (GMFS), which is the first emerging Asia Pacific ETF to target small cap stocks in the region.

GMFS is linked to the S&P Asia Pacific Emerging Under $2 Billion Index. This benchmark is float-adjusted market-capitalization weighted and it includes publicly listed companies with a total market capitalization between $100 million and $2 billion.

Each stock within the index is capped at a maximum of 25 percent of the index weight, and the top five stocks are capped at a maximum of 50 percent of the index weight. Some of the countries covered include China, India, Indonesia, Malaysia, Philippines, Taiwan, and Thailand. As of December 31, 2011, the Index was comprised of 1,455 securities.

“Emerging market small cap stocks are an attractive opportunity for many investors, as broad emerging market equity funds are often dominated by large cap companies that rely on developed world demand,” said James Ross, senior managing director and global head of SPDR Exchange Traded Funds at State Street Global Advisors.

GMFS has an annual expense ratio of 0.65%.