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%.