“Goldman Sachs Group Inc.’s asset-management arm, which manages more than $1 trillion, joins GMO, Voya Investment Management and JPMorgan Chase & Co. in touting emerging markets to clients after the benchmark stock index surged more than 75 percent since early 2016,” according to Bloomberg. “Bulls argue that developing-nation stocks are supported by earnings growth, cheap historical valuations and lower volatility than their more industrialized peers.
According to a recent Bloomberg survey, investors pointed to selective emerging market opportunities, such as Mexico and Brazil, which were among the most favored emerging market investment destinations. For its part, BlackRock is bullish on China, Brazil and India. Those countries combine for over 44% of IEMG’s weight.
IEMG debuted just over five years ago as the low-cost alternative to EEM. With investors increasingly prioritizing fees in the ETF evaluation process, IEMG’s status as a cost-effective avenue to emerging markets stocks has helped the fund grow at a blistering pace.
For more information on the developing economies, visit our emerging markets category.