1 Cumulative cost of holding a $10,000 position for a decade. The biggest fund here, Vanguard FTSE Emerging Markets Index (VWO), lost money over the five years 2011 through 2015, did well in 2016-2017, and is on course to at best break even in the first half of 2018. I aim to help you save on taxes and money management costs. Growth will, or should be, rapid in countries that are just now creating a big middle class. Investors in index funds care about costs. EEM used to be the leader in this sector, but lost assets to the cheaper Vanguard fund. These exchange-traded funds own equities from diverse emerging markets: Brazil, Russia, India, China and others. Opinions expressed by Forbes Contributors are their own. Here are the best Diversified Emerging Mkts ETFs. All Rights Reserved, This is a BETA experience. I have been an Enrolled Agent since 1979. Contrast the sister fund from BlackRock, iShares Core MSCI Emerging (IEMG), a terrific buy. Over the past decade SPDR Portfolio Emerging Markets (SPEM) has averaged a 6.4% annual return, to 15.3% for the S&P 500. You may opt-out by. I aim to help you save on taxes and money management costs. Vanguard FTSE Emerging Markets has demonstrated itself as an industry leader among emerging markets ETFs, and it's still a solid choice for those looking for the broadest possible exposure. SPDR® Portfolio Emerging Markets ETF. Vanguard FTSE Emerging Markets ETF (NYSEARCA: VWO) Schwab US Mid-Cap ETF (NYSEARCA: SCHM) WisdomTree US SmallCap Earnings ETF (NYSEARCA: EES) iShares US Healthcare ETF (NYSEARCA: IYH) All Rights Reserved, This is a BETA experience. Emerging markets have long stretches of good results and long stretches of bad ones. A = easy to trade. Schwab Emerging Markets Equity ETF (SCHE) Although smaller than these first big funds, SCHE is … Data sources: Morningstar; Bloomberg; fund distributors. FTSE Emerging Markets All Cap Index ETF. EY & Citi On The Importance Of Resilience And Innovation, Impact 50: Investors Seeking Profit — And Pushing For Change. Over the past decade it has barely kept up with inflation, notwithstanding that China’s economy has been racing ahead. Ticker: VEE. The biggest fund here, Vanguard FTSE Emerging Markets Index (VWO), lost money over the five years 2011 through 2015, did well in 2016-2017, … The Morningstar analyst covering EEM sums up the problem: “It accurately reflects the composition of the emerging-markets universe with low turnover, but it is hard to justify its fee when there are similar index funds available for a fraction of the price.”. I have been an Enrolled Agent since 1979. Tax law is a frequent subject in my articles. Incorporates annual expense ratio, bid/ask spreads and cost offset from securities lending. I graduated from Harvard in 1973, have been a journalist for 45 years, and was editor of Forbes magazine from. EY & Citi On The Importance Of Resilience And Innovation, Impact 50: Investors Seeking Profit — And Pushing For Change. Tax law is a frequent subject in my articles. Opinions expressed by Forbes Contributors are their own. The fund is the cost efficiency leader here, with a ten-year price tag we put at $106. Maybe it’s time for the less developed markets to do a little catching up. You may opt-out by. *Honor Roll member. SPEM owns shares of companies like Baidu, Vale and Gazprom. Schwab Emerging Markets Equity ETF™. Its management fee, six times that of SPEM, disqualifies it. For the full list, turn to Best ETFs Honor Roll. © 2020 Forbes Media LLC. Email me at williambaldwinfinance -- at -- gmail -- dot -- com. Single-country emerging-market portfolios are in the Best ETFs: Single-Country. Notably absent from the Best ETFs list is iShares MSCI Emerging Markets (EEM), once the biggest ETF in this territory. But economic growth translates very imperfectly into stock market returns. [Looking for an exchange-traded fund? I graduated from Harvard in 1973, have been a journalist for 45 years, and was editor of Forbes magazine from. I aim to help you save on taxes and money management costs. These funds own shares of companies in China, Brazil, Russia and other developing countries. Conspicuously absent here is iShares MSCI Emerging Markets (EEM), disqualified because its 0.69% expense ratio puts it above the 0.4% cutoff for Best ETFs, even after credit is given for securities lending revenue. For a searchable directory of fund names and tickers, use the ETF Directory. Its management fee, six times that … See the full coverage of Forbes Best ETFs.]. Fees: 0.23% MER: 0.24% Dividend Yield (12 … © 2020 Forbes Media LLC. There’s no reason that the fruits of expansion have to accrue to the owners of publicly traded companies; most or all may land in the hands of workers, private companies and governments. They’ve taken money out of EEM and put it in cheap equivalents like the Vanguard fund and a discounted version of EEM that appears below with the ticker IEMG. This is a list of all US-traded ETFs that are currently included in the Emerging Markets … VictoryShares USAA MSCI EM Vl Mntm … I graduated from Harvard in 1973, have been a journalist for 45 years, and was editor of Forbes magazine from 1999 to 2010. With a boost from securities lending that erases most of its already low 0.14% expense ratio, this fund lets you hold stocks like Tencent and Alibaba almost free of fees. I graduated from Harvard in 1973, have been a journalist for 45 years, and was editor of Forbes magazine from 1999 to 2010. For an explanation of our rankings and a directory of fund categories, turn to Forbes Best ETFs. Vanguard’s much larger fund is not much more expensive. 2Reflects bid/ask spreads and trading volume. Notably absent from the Best ETFs list is iShares MSCI Emerging Markets (EEM), once the biggest ETF in this territory. I aim to help you save on taxes and money management costs. Email me at williambaldwinfinance -- at -- gmail -- dot -- com.