A lethargic month for emerging markets equities has not prevented the iShares MSCI Emerging Markets Minimum Volatility ETF (NYSEArca: EEMV) from gaining half a percent, which is not too shabby compared to a mere 0.1% for the iShares MSCI Emerging Markets ETF (NYSEArca: EEM).
EEMV’s volatility is, in part, reduced by lower allocations to some of the most volatile developing markets. For example, Brazil and India, two of the emerging markets with the highest standard deviations, combine for over 17% of EEM’s weight. On the other hand, those countries combine for just 7.6% of EEMV’s weight. [The Advantages of Low Vol ETFs]
Investors have added nearly $113 million to EEMV this month compared to just $1.2 million to the Vanguard FTSE Emerging Markets ETF (NYSEArca: VWO), the largest emerging markets ETF by assets.
Chart Courtesy: MSCI
Tom Lydon’s clients own shares of EEM.