ETF Trends publisher Tom Lydon discussed the Legg Mason Emerging Markets Low Volatility High Dividend ETF (LVHE) on this week’s “ETF of the Week” podcast with Chuck Jaffe on the MoneyLife Show.
Emerging markets account for 40% of the global economy, doubling in the past 25 years.
The emerging markets as a whole are now the largest economy in the world, overshadowing the U.S., Japan and all of Europe.
Emerging market economies are expected to expand at a faster pace than developed markets every year through 2021, according to the International Monetary Fund.
Nevertheless, emerging markets are known for their risks, which has contributed to greater price swings in volatile market conditions – this is where something like LVHE comes in handy.
It focuses on companies with relatively high yield and low price and earnings volatility, and the funds also target profitable companies.