Stocks on the move: FL, GPS, AMAT >>> READ MORE

5 ETF Replacements for Overpriced Mutual Funds

Low costs, more singular focus will show up in your final returns

      View All  

Emerging Markets

Mutual Fund: Wells Fargo Advantage Emerging Markets
Replacement ETF:
WisdomTree Emerging Markets

When it comes to long-term growth, emerging markets provide huge opportunities. But it can be expensive for a mutual fund to engage in analysis and research.

This is the case with the Wells Fargo Advantage Emerging Markets (MUTF:EMGAX) fund, which has investments in countries like Brazil, South Korea, Taiwan, Mexico and China. The fund has returned 9.5% this year, hampered by a hefty 1.68% in fees. Plus, you’d be suffering an initial 5.75% load on its A shares.

The WisdomTree Emerging Markets Equity (NYSE:DEM) ETF is similar to EMGAX in that it’s focused on conservative emerging-market investments, which tend to have lower returns. DEM’s 2012 return is 10.25%, and while that isn’t remarkably better than Wells Fargo’s mutual fund, it is better — and that’s because of a much lower expense ratio of 0.63%.

Article printed from InvestorPlace Media,

©2017 InvestorPlace Media, LLC