Second, AGEM has been buoyed by resurgent Chinese stocks. AGEM’s weights to India and Russia are larger than what is found with some rival funds, but so is the fund’s China exposure 28.3%, or 760 basis points more than what VWO allocates to the world’s second-largest economy.
AGEM tracks the Dow Jones Emerging Markets Sector Titans Composite 100 Index. As is the case with comparable emerging markets indices, a significant part of the Dow Jones Emerging Markets Sector Titans Composite 100 Index is allocated financial services and energy names with those sectors combining for nearly 42% of AGEM’s weight.
The index is reflective of the valuation discounts currently seen on emerging markets equities with a trailing P/E ratio of 11.69. AGEM recently crossed its 50-day moving average, but is still 4.3% below its 200-day line.
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of EEM.