Factor Foundation With Emerging Markets ETF

Because it tracks a FTSE index, DEMG excludes South Korean stocks because that index provider classifies South Korea as a developed economy. Taiwan and China combine for 36% of DEMG’s weight. South Africa and India combine for 22% of the fund’s weight. About 60% of DEMG’s geographic exposure is to Asian economies with another 13% allocated to Latin America.

Related: A Surging Smart Beta Idea For Ex-US Exposure

Although emerging markets exchange traded funds are among this year’s most prolific asset gatherers in the U.S., some market observers argue that emerging markets equities are under-owned by big investors and that the asset class has more room to rally.

DEMG holds nearly 700 stocks. None of the ETF’s sector weights exceed 12.9%, implying more balance than traditional emerging markets strategies. The industrial, financial services and materials sectors combine for about 37% of DEMG’s roster.

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