VIDEO: Beware of ‘Emerging Market’ Exposure

by Charles Sizemore | June 19, 2013 9:37 am

VIDEO: Beware of ‘Emerging Market’ Exposure

Just last week, good ol’ Greece was demoted[1] from “developed market” to “emerging market” for … well, reasons I’m sure you can imagine.

But while Greece admittedly no longer seems on par with more developed countries, it also isn’t really “emerging” based on factors like age and living standard — as I mentioned right after the news broke[2]. And that sheds light on an interesting reality: The categorization of “emerging market” is slippery at best.

Why should you care? Because emerging-market mutual funds and ETFs are often built or indexed around such statuses. And while Greece still isn’t going to dominate emerging-market portfolios any time soon, it’s also far from the only country that you might accidentally get exposure to if you blindly invest in a popular fund like the iShares MSCI Emerging Markets Index ETF (EEM[3]).

Find out what supposedly “emerging” markets are hidden in the EEM — along with an alternative way to get true emerging-market exposure — in the clip above.

 Charles Lewis Sizemore, CFA, is the chief investment officer of the investment firm Sizemore Capital Management.  As of this writing, Sizemore Capital is long ECON. Click here[4] to receive his FREE 8-part investing series that will not only show you which sectors will soar but also which stocks will deliver the highest returns. The series starts November 5 and includes a FREE copy of his 2014 Macro Trend Profit Report.

Endnotes:
  1. Greece was demoted: http://slant.investorplace.com/2013/06/greece-gets-kicked-out-of-the-developed-world/
  2. as I mentioned right after the news broke: http://investorplace.com/2013/06/is-greece-emerging-hardly-but-your-fund-might-think-it-is/
  3. EEM: http://studio-5.financialcontent.com/investplace/quote?Symbol=EEM
  4. Click here: https://order.investorplace.com/?sid=OA8158

Source URL: http://investorplace.com/2013/06/video-beware-of-emerging-market-exposure/
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