Vanguard FTSE Emerging Markets ETF (NYSEArca: VWO) and the iShares MSCI Emerging Markets ETF (NYSEArca: EEM), two of the largest emerging markets ETFs, are surging and gathering assets at a rapid rate.
Moreover, the iShares Core MSCI Emerging Markets ETF (NYSEArca: IEMG), the low cost alternative to EEM, is one of this year’s top asset-gathering ETFs as investors have continually looked for low-fee options when embracing ex-US equities.
“Research Affiliates estimates that the annualized real return for U.S. stocks over the next 10 years will be less than 1 percent, compared with 4.8 percent for the EAFE index. More volatile emerging markets are estimated to pack even more opportunity, with an annualized inflation-adjusted return of 6.8 percent,” according to CNBC.
For more information on the ETF market, visit our ETF performance reports category.
Tom Lydon’s clients own shares of VWO.