Investors are also embracing alternative strategies for accessing developing world stocks via ETFs. The iShares MSCI Emerging Markets Minimum Volatility ETF (NYSEArca: EEMV) has hauled in $352 million in new assets this quarter.
EEMV’s “strategy has had a good track record–as measured by the back-tested performance of this fund’s benchmark index (the index’s live performance commenced in November 2009). Over the trailing 15- and 10-year periods through April 2015, this fund’s underlying index generated 408 and 335 basis points, respectively, of annualized outperformance versus the cap-weighted MSCI Emerging Markets Index, with significantly lower volatility,” according to Morningstar.
The ETF, which turns four in October, is, not surprisingly lightly allocated to higher beta emerging markets. For example, EEMV holds no Russian stocks and Brazil and India combine for just over 6% of the ETF’s weight. [Favored EM ETF Idea]
iShares Core MSCI Emerging Markets ETF
Tom Lydon’s clients own shares of DEM and EEM. Todd Shriber owns shares of DEM.