GMF offers some other advantages. Home to nearly 560, the ETF is not excessively exposed to any of those holdings as Apple (NasdaqGS: AAPL) parts supplier is GMF’s largest holding at a weight of just 3%. Additionally, while GMF does feature some exposure to state-run enterprises, the fund is not dangerously allocated to those companies.
The telecom, energy, materials and utilities sectors, groups that often sport some of the largest concentrations of state-controlled firms in emerging markets, combine for just 23% of GMF’s weight. [Avoid State-Run Companies With This ETF]
GMF also allocates nearly a quarter of its weight to the technology sector and that includes some marquee Chinese Internet names among the ETF’s top 10 holdings. Tencent (OTC: TCEHY), Baidu (NasdaqGS: BIDU) and Alibaba (NYSE: BABA) are all top 10 holdings in GMF. The ETF is able to hold Alibaba because S&P was one of the first index providers to assign the company with a China domicile, allowing for Alibaba’s inclusion in S&P indexes. [Good Indexing News for Alibaba]
SPDR S&P Emerging Asia Pacific ETF
Tom Lydon’s clients own shares of EEM. Todd Shriber owns shares of Alibaba.