“Investors are pouring money into the core ETF as it gives better coverage of the equity universe in developing nations than the main MSCI Emerging Markets ETF, which buys large-cap and mid-cap stocks. The former tracks 2,667 companies accounting for 99 percent of the market, while the latter is confined to 839 constituents spanning 85 percent,” according to Bloomberg.
IEMG, which tracks the MSCI Emerging Markets Investable Market Index, allocates 28% of its weight to Chinese stocks. South Korea and Taiwan combine for over 27% of the ETF’s roster. India and Brazil combine for over 16% of IEMG’s geographic exposure.
Like VWO, IEMG charges 0.14% per year, or $14 on a $10,000 investment.
For more information on the ETF market, visit our ETF performance reports category.
Tom Lydon’s clients own shares of VWO.