October 12, 2007 at 1:00 pm by Tom Lydon
Emerging markets exchange traded funds (ETFs) have been superstars lately. However, these areas can be laden with volatility. For those looking to invest in larger companies to hopefully offset some of the riskiness, consider the PowerShares FTSE RAFI Emerging Markets (PXH). PHX tracks the FTSE RAFI Index that follows the largest companies among the emerging markets based on four fundamental factors of firm size such as book value, cash flow, sales and dividends, reports Zoe Van Schyndel for The Motley Fool. The expense ratio for PXH is also on the larger end at 0.85%.
Countries who make up the assets are usual suspects like Brazil, China and South Korea. Financials and telecommunications make up around half, while energy and materials also place high. Top stocks include Rostelecom (ROS), Posco (PKX), and PetroChina (PTR). PXH’s main competitors include the iShares Emerging Markets Index (EEM) and the Vanguard Emerging Markets Stock ETF (VWO).
For full disclosure, some of Tom Lydon’s clients own EEM.
Tags: Emerging Markets
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October 13th, 2007 at 6:12 am
I didn’t see you reference the Emerging Markets 50 ADR (ADRE) in your comparison of emerging markets ETFs. What is your position on this investment amoung the group? After all, it has been flying higher than the group.
October 15th, 2007 at 9:46 am
Yes, ADRE is right there with all the other emerging-market ETFs. Currently, some of our clients own ADRE. In the post, we weren’t listing all of the emerging-market ETFs; rather we were highlighting a few.