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.
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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