ETF Investors Warm up to Emerging Markets


EEM includes a hefty 23.6% tilt toward China and holds about 70.1% in emerging Asian economies, along with 12.8% Latin America and 9.1% Africa/Middle East.

“I would recommend that investors actually focus specifically on Asia Pacific ex-Japan,” Gibbs added. “We think you get the most bang for your buck by focusing on that one region.”

For example, ETF investors can look at emerging Asia options, including the Global X FTSE ASEAN 40 ETF (NYSEArca: ASEA), SPDR S&P Emerging Asia Pacific ETF (NYSEArca: GMF) and iShares MSCI Emerging Markets Asia ETF (NYSEArca: EEMA).

ASEA leans toward southeast Asian economies, including Singapore 36.8%, Malaysia 26.8%, Indonesia 18.5%, Thailand 13.4% and Philippines 4.5%.

GMF top country weights include China 43.9%, Taiwan 21.0%, India 17.6%, Malaysia 5.4%, Thailand 4.5%, Indonesia 4.1% and Philippines 2.7%.

EEMA also includes Asia Pacific exposure, except the MSCI categorizes South Korea as an emerging economy. Country weights include China 33.9%, South Korea 22.2%, Taiwan 17.3%, India 11.6%, Malaysia 5.1%, Indonesia 3.9%, Thailand 3.1% and Philippines 2.1%.