The fund allocates over 29% of its weight to Japan and the U.K. while China is its largest emerging markets exposure at 7.61%. Seven of IXUS’ top 10 country weights are developed markets. More than 20 countries are represented in the fund.

“The fund’s significant exposure to companies in the U.K. and Japan, both of which are dealing with economic headwinds, should be less of a concern for investors than it may appear,” according to Morningstar. “The U.K.’s recent decision to leave the European Union, along with Japan’s aging workforce and tremendous public debt, have the potential to slow new investment and weaken demand. However, these risks should already be reflected in market prices. Additionally, a large proportion of holdings within these two countries are multinational firms with global operations that diversify economic risk.”

IXUS is up half a percent year-to-date.

For more information on the developed markets, visit our global ETFs category.