Emerging markets represent countries with younger and generally less developed economies. Since many also have younger and growing populations, they offer the potential for higher levels of long-term economic growth.
There is not a large number of exchange-traded funds (ETFs) targeting emerging markets in a diversified manner. In AAII’s universe of ETFs, the diversified emerging markets category encompasses 76 ETFs. This compares to the broader universe of nearly 2,400 ETFs listed in total on U.S. exchanges.
This month’s ETFs First Cut screened the field of emerging markets ETFs to identify those that have outperformed their category peers on a one- and three-year basis. A total of 24 funds passed. Adding a filter to exclude leveraged and inverse funds did not impact the results. The list is ranked by one-year return.
Seven of the passing funds had less than $100 million in total assets. Two had less than $10 million assets. ETFs with such low levels of assets typically have a high level of risk of being closed.
Relative to their mutual fund counterparts (which can be seen in this month’s Funds First Cut), the expense ratios for these ETFs are low. More than half have expense ratios below 0.50%. This may be attributable to the fact that nearly all of the passing ETFs track an index. ▪

John D from OH posted over 5 years ago:
ROBERT M from VA posted over 5 years ago:
You need to log in as a registered AAII user before commenting.
Log InCreate an account