IEMG follows the MSCI Emerging Markets Investable Market Index and holds about 1,900 stocks. The $49.77 billion ETF is Asia-heavy, allocating about 56% of its geographic weight to China, South Korea and Taiwan.

While emerging markets may not repeat last year’s impressive performances, BlackRock maintains there is potential with the asset class in 2018.

“Our BlackRock Macro GPS points to the synchronized global expansion carrying on through 2018. Chinese growth has exceeded expectations and authorities have shown a willingness to loosen policy to stave off any sharp slowdown,” said the asset manager. “A windfall from higher commodity prices has helped many EM countries bolster their current accounts. Equity valuations have fallen to less than 12 times forward earnings. And corporate earnings growth is expected to clock in at more than 20% over the coming 12 months.”

For more information on the developing economies, visit our emerging markets category.

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