The two new factor-based emerging markets funds from Market Vectors are the MSCI Emerging Markets Quality ETF (NYSEArca: QEM) and the MSCI Emerging Markets Quality Dividend ETF (NYSEArca: QDEM).
QEM selects growth stocks based on high return on equity, stable year-over-year earnings growth, and low financial leverage from the MSCI Emerging Markets Index. China, South Africa and Taiwan combine for 41% of QEM’s country weight.
QDEM tracks the MSCI Emerging Markets High Dividend Yield Index, which is home to companies “that have demonstrated dividend yields that are higher than average and deemed by the Index Provider, MSCI, to be both sustainable and persistent,” according to Market Vectors.
China, South Africa and Russia combine for almost 58% of QDEM’s weight. Not only are China and Russia two of the least expensive emerging markets on valuation, but the two countries are also two of the biggest dividend payers in the developing world. [Get Paid to Play in Emerging Markets]
QDEM and QEM charge 0.5% per year.
QDEM Sector Weights
ETF Trends editorial team contributed to this post.