iShares launched a new emerging markets infrastructure exchange-traded fund on Friday, June 19, with the debut of the iShares S&P Emerging Markets Infrastructure Index Fund (NASDAQ: EMIF).

EMIF holds a portfolio of 30 large-cap emerging market infrastructure companies focused in markets like China, Brazil and Argentina. As of March 30, those three countries held the largest weight in the index the fund tracks, at 33%, 14% and 9%, respectively, of the benchmark.

EMIF will go head-to-head with the PowerShares Emerging Markets Infrastructure Portfolio (NYSE Arca: PXR), which launched in October of this year and currently has $45.5 million in assets under management. Both funds charge management fees of 0.75%.

The two funds differ markedly in how they approach the market. EMIF breaks the emerging markets infrastructure field down into three subsectors: transportation, energy and utilities. At each semiannual rebalancing, it aims for a 20%, 40% and 40% weight in the three markets. It limits itself to the 30 most liquid, large-cap holdings in the field.

PXR holds a broader portfolio of 60 names and defines its market differently, looking for companies that fit one of seven categories: 1) construction and engineering; 2) construction machinery; 3) construction materials; 4) diversified metals and mining; 5) heavy electrical equipment; 6) industrial machinery; and 7) steel. It aims to diversify across the market capitalization spectrum, and indeed, has a large weight (49%) in mid-cap companies.

On a top-line basis, EMIF seems more focused on transportation and electrical utilities, while PXR has more exposure to mining and basic materials.

On a country basis, the two funds are very different. EMIF has more than twice the exposure to China as PXR, while PXR has much deeper exposure to Indonesia, Russia and South Africa.