Additionally, India and Russia, two of the most volatile emerging markets, combine for less than 3%. Brazil, another developing economy rarely short on equity market volatility, is just 6.25% of the ETF’s weight.
EELV is similar to the U.S.-focused PowerShares S&P 500 Low Volatility Portfolio (NYSEArca: SPLV) in that the former’s components are evaluated by trailing 12-month volatility.
EELV is even heavier on Taiwan and South Korea than EEMV with those countries combining for over 42% of the PowerShares offering’s weight. Malaysia, another low beta developing market, occupies a 15% weight in EELV, nearly double the weight EEMV gives to that country.
“EELV and EEMV have net expense ratios of 0.29% and 0.25%, respectively. However, just because these two ETFs aim to hold lower risk stocks does not make them immune to losses, as both were in the red in2013,” said S&P Capital IQ.
The research firm also rates EELV marketweight.
iShares MSCI Emerging Markets Minimum Volatility ETF
Tom Lydon’s clients own shares of EEM and EFA.