The parade of new emerging markets exchange-traded funds continued on Friday with the launch of the iShares MSCI Emerging Markets Eastern Europe Index Fund (NYSEArca: ESR).

The fund will track a free-float-adjusted market capitalization index measuring the equity performance of four countries:

• Russia: 75 percent of the portfolio
• Poland: 13 percent of the portfolio
• Czech Republic: 6 percent of the portfolio
• Hungary: 6 percent of the portfolio

The fund is highly concentrated in the energy markets, with 52 percent of the fund invested in energy names. Financials are a distant second in sector exposure.

Consistent with the energy theme, ESR’s largest holdings are the massive Russian energy firms Gazprom and Lukoil, representing 25 percent and 10.4 percent of the fund’s holdings, respectively.

ESR will go head-to-head with the SPDR S&P Emerging Europe ETF (NYSEArca: GUR), which is also heavily concentrated in Russia, representing 64 percent of the portfolio.

Also similar to ESR, GUR's largest holdings are Gazprom and Lukoil, weighted at 20 percent and 9.6 percent, respectively.

iShares, acknowledging the growing demand for products that deliver exposure to developing nations, now has nearly 50 percent of its offerings linked to non-U.S. markets.

“Eastern Europe is a region poised for potential growth, and presents significant opportunities to investors,” Michael Latham, iShares co-CEO at Barclays Global Investors, said in a release.

ESR will have an annual expense ratio of 0.72 percent, compared with 0.60 percent for GUR.

You can read iShares' release here.