Emerging Markets ETFs (VWO, EEM, IEMG, SCHE, EEM) Vanguard vs iShares
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- Опубликовано: 30 июл 2024
- These two emerging market ETFs will give you access to stock markets in developing countries. But which one is better?
VWO is probably the better all around better ETF.
If you're a long term investor, do not buy EEM (iShares MSCI Emerging Markets ETF). IEMG is a great alternative to EEM. They're basically the same fund, but IEMG has a fraction of the cost of EEM. If you are a day trader, EEM may be a better option for you.
⌚Video Chapters:
0:00 Intro to Emerging Market index funds
0:50 The best Emerging Markets ETF is VWO based on my research
2:06 The history of iShares IEMG.
3:48 Side by side comparison of VWO and IEMG.
4:50 How to buy these 2 funds on Canadian exchanges with $CAD.
5:52 EEMV (iShares MSCI EM minimum volatility factor ETF)
6:09 SCHE (Schwab Emerging Markets Equity ETF)
6:30 EEMS (iShares MSCI Emerging Markets Small-Cap ETF)
And DGS ( WisdomTree Emerging Markets Smallcap Dividend Fund)
6:45 EMXC (iShares MSCI Emerging Markets ex China ETF)
7:47 How I'm buying EM ETFs by selling put options
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📜Sources:
www.etf.com
ycharts.com
etfdb.com
#emergingmarketsETF #IEMG #VWO
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I'm in FRDM etf. So far so good, but it doesn't have a ton of history.
That ticker is so appropriate for the fund. 🙂 There's a lot of value in economic freedom. Maybe more investors will buy it over time.
@@Freedomthirtyfiveblog since the russian stock collapse and halt in trading of the russian stock market, if you owned IEMG and 2.5% of its portfolio was in russian stocks, what has blackrock done with that 2.5% holding of russian stocks in the ETF, IEMG, have they been written off? is this why IEMG stock has fallen recently because most ETFs like IEMG that have russian holdings have sold off or gotten rid of their russian holdings
@@petejames1326 MSCI has been pretty good at reducing Russia's weight in the index since 2008. In December of 2007 Russian stocks represented 10% of the MSCI emerging markets index, but as of Feb 2022, it's only worth 2.5%.
I'm not sure what BlackRock has done with the extra allocation. MSCI has stated that its Russia indexes will be reclassified from EM to un-investable due to recent events, haha.
If I had to guess I would assume BlackRock would take this small remaining allocation (2.5%) and redirect it to other markets like China, Taiwan, and India where the percentage weight has been increasing over time. 🙂
@@Freedomthirtyfiveblog ok, thanks, so IEMG isnt down because the russia thing? its down because chinese markets are down because of covid lockdowns right?
@pete james If your time frame is the last month or so then yes. China and Taiwan make up 44% of IEMG's holdings. Both regions are down quite a bit lately. The new lockdowns are part of the cause. The Shanghai composite index fell 7% yesterday alone, lol. This has a much larger impact than Russia's stock market performance on IEMG's price.🙂
Another perfect content video.
I am bullish on emerging markets. However when I check the data perfornance has not been great compared to USA and Canada. Secondly I am a semi-geezer with 8-20 years of life left. So, I am cautious. So far, all I do is buy ETFs w/ 100% exposure to Indian market. Thank you for leads of ETFs to do reading on.
Nice video. New subscriber
Thanks Nora. Glad you enjoyed the content. 🙂
Good job
Thanks! 😀
EMXC is very intriguing.
Yes. It's volatile, falling 3.5% yesterday alone. Yet it has potentially more upside than North American stocks going forward due to lower valuations.
Love your name by the way. I first learned about that word from Michael on Vsauce. 🙂
what is the difference between "İshares core MSCİ emerging" and "Vanguard FTSE Emerging"? inner is almost the same. OOk with country distribution. which one will be better? Have noticed that with "Vanguard emerging" no "samsung" is in the top 10-20.. Maybe that's a small difference. Thank you..
They are very similar, but as you noticed the iShares fund includes Korean stocks. That's why you see Samsung in there. The Vanguard fund doesn't have any Korean companies.
In terms of which one is better that's hard to say. If you want more diversification globally, the iShares MSCI index will give you more international exposure. But the returns have been almost identical over the last 2 years between the two ETFs so it doesn't matter very much choosing one over the other. 🙂
Thank you for your info. Do you know what's equivalent to VWO for UK Vanguard?
If you are in the UK, generally speaking there are 2 large funds to choose from.
iShares EIMI. This tracks the MSCI emerging markets investable market index.
Vanguard VFEM. This tracks the FTSE emerging market index.
Both EIMI and VFEM are passive, tracking market-cap-weighted indices.
The biggest difference between the two ETFs is that VFEM excludes South Korea while EIMI does not.
The closer one to VWO in the United States would probably be VFEM on the London Stock Exchange.🙂
@@Freedomthirtyfiveblog Thank you very much for taking your time to provide such an informative and clear answer. :)
Loved the content. We have 70% VIU and 30% VEE. Got this formula watching Justin Bender's portfolio. Our goal is to increase the EM allocation. Thoughts about this combination? Stay safe!
I think that's a great strategy. You have all your bases covered with those 2 ETFs. 💪 I'm a fan of Just Bender. He always does a really good job explaining these things.
@@Freedomthirtyfiveblog thank you :)
Cringe
You don't have to be a fan of South Korea to Like IEMG but you can dislike China with VWO's 37% stake in them and China's spiraling economy. It seems like a bad bet to me. Many people are giving China 10 years to fail but I feel like it's more like 5. I hope Hong Kong is set free.
You know your emerging market ETFs well. 🙂 I think a lot of investors are underestimating the geopolitical risk of buying companies in China right now.
When China turns into a developed nation. What happens to vwo? It would completely tank right?