EMHZ will compete with ETFs such as the SPDR MSCI EM Beyond BRIC ETF (NYSEArca: EMBB) and the EGShares Beyond BRICs ETF (NYSEArca: BBRC), which is proving to be one of this year’s fastest growing ETFs. [Beyond BRICs ETFs Holding Up Well]
There are important differences between the three funds that indicate the three may be able to coexist. For example, EMBB is a solid choice for the conservative because of its large exposure to South Korea and Taiwan while BBRC excludes those nations while mixing in up to 25% frontier markets exposure. EMHZ rests somewhere in the middle in terms of perceived country risk.
Of the countries found in EMHZ, the one that occupies the largest weight in the MSCI Emerging Markets Index is Mexico at nearly 5%.
Prior to EMHZ, iShares’ most recent fund launch was also an emerging markets ETF. The iShares Currency Hedged MSCI Emerging Markets ETF (NYSEArca: HEEM) debuted on Sept. 25. http://www.etftrends.com/2014/09/ishares-expands-currency-hedged-etf-suite-with-em-fund/
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of EEM and IEMG.