PowerShares S&P Emerging Markets Low Volatility Portfolio (NYSEArca: EELV): The top countries represented in the portfolio include South Africa, Malaysia and Taiwan. The yield of 1.03% comes with a market cap of $101 million. The cost is 0.29% and the portfolio consists of 201 stocks.
The iShares MSCI Emerging Markets Minimum Volatility Index (NYSEArca: EEMV) features Taiwan, China and South Korea as top holdings. Some critics claim that South Korea has reached developed status, and in response, some providers may reduce exposure to this country in emerging funds. The fund costs 0.25% and has a yield of 1.7%. The market cap of over $1 billion indicates the popularity of the ETF. [Where to Find Yield in ETFs with Less Risk]
Country allocation is important because it will indicate what type of risk the ETF is up against. Also, investors can avoid over-allocation to a specific country or region and this alone can cut down risk.
Tisha Guerrero contributed to this article.
Story updated to correct expense ratio for EELV.