Vanguard Emerging Markets Stock Index
The Vanguard Emerging Markets Stock Index (MUTF:VEIEX) tracks the MSCI Emerging Markets Index, which holds more than 900 stocks.
Its largest positions are in China, South Korea and Brazil, with holdings including Chinese telecom China Mobile (NYSE:CHL) and energy firm CNOOC (NYSE:CEO), South Korea’s Samsung and Brazil’s Petroleo Brasileiro (NYSE:PBR).
As VEIEX tracks the MSCI Emerging Markets Index, its returns have been naturally similar, with gains of just 1% in the past year. But its returns also reflect the past successes of emerging markets — with a 10-year annual average of almost 15% — so a broader rebound in emerging markets would be perhaps easiest to catch in VEIEX. Also attractive is the fund’s respectable dividend yield of 2.1%.
Because the fund doesn’t employ active management and merely tracks an index, VEIEX can be yours for a low 0.33% in expenses.