Holderith feels that interest in emerging markets should continue to expand. “It’s a 25-year growth story in its sixth year.” The positive growth outlook for emerging markets goes hand-in-hand with the changing demographic picture in these countries. Holderith notes that in most of these countries, there’s a huge young population, all looking for the “Western experience”: cell phones, iPods, dining out and more.
Oil and gas get the top weighting in the fund, with 30.8% of assets. That’s followed by financials (22.1%), telecommunications (11.6%) and basic materials (9.3%).
Countries covered in the index include China Offshore (21.8%) and Brazil (19.7%) to Chila (2.3%) and Indonesia (1.5%). The expense ratio is 0.75%.
For more stories on emerging market ETFs, visit our emerging market category.