China A-shares will represent 5.6% of the new benchmark for the Emerging Markets Index Fund, according to the issuer. A-shares are the stocks that trade on mainland China exchanges in Shanghai and Shenzhen.
Another big difference between EEM and VWO is South Korea. FTSE Russell considers Asia’s fourth-largest economy while MSCI sees it as an emerging market. In fact, MSCI has pulled South Korea from the list of candidates for a potential promotion to developed markets status. EEM allocates over 14% of its weight to South Korea while VWO has no exposure to the country.
Vanguard FTSE Emerging Markets ETF
Tom Lydon’s clients own shares of EEM.