Related: Sector Tilts Help This Smart Beta ETF Outperform

Even amid tensions on the Korean peninsula, EEM and IEMG have traded significantly higher this year. VWO does not track the MSCI Emerging Markets Index or a related MSCI index, so it does not feature exposure to South Korean stocks.

The weaker dollar has been helping emerging markets assets this year and many bond traders believe the Federal Reserve will not raise interest rates next month and it is possible the Fed will not do so again this year.

For more information on the ETF market, visit our ETF performance reports category.

Tom Lydon’s clients own shares of VWO.