“Asian net importers of oil are projected to benefit the most from the spectacular drop in oil prices. Last year, political expediency and budgetary discipline stipulated that the governments of India, Indonesia and Malaysia opportunistically lower onerous fuel subsidies amid improving living cost patterns advanced by the downturn in oil prices,” according to S&P Capital IQ.
In addition to its 33.2% weight to China, the $122.4 million EEM allocates a combined 33% of its weight to net oil importers South Korea and India. For its part, India has frequently been highlighted as one of the prime emerging markets beneficiaries of lower crude prices.
EEMA, which S&P Capital IQ rates underweight, has another benefit. Due to its emphasis on Asian markets, the ETF’s energy sector exposure is scant at just 6.1%. That is 170 basis less than the energy weight in the MSCI Emerging Markets Index.
iShares MSCI Emerging Markets Asia ETF