Emerging Markets the Smart Beta Way

Larger allocations to small- and mid-caps have served as catalysts to help TLTE slightly outpace the rival Vanguard FTSE Emerging Markets ETF (NYSEArca: VWO), the largest emerging markets year-to-date.

Adding to the near- to medium-term bull case for TLTE is the aforementioned country weightings. Combine Malaysia with China, South Korea and Taiwan and over 52% of TLTE’s weight is allocated to country’s that are not plagued by widening current account deficits. [Yellen’s Help for EM ETFs may be Fleeting]

Emerging markets disappointments Brazil and India combine for just 15% of TLTE’s weight.

FlexShares Morningstar Emerging Markets Factor Tilt Index Fund

ETF Trends editorial team contributed to this post.