Best Index Fund #5: iShares MSCI Emerging Markets ETF (EEM)
If you’re a little more interested in achieving growth with your international holdings, forget the developed markets and consider emerging markets instead. In short, emerging markets are economies that are considered not as stable, but usually because they’re rapidly growing — countries such as China, Russia and Brazil currently fit the bill here. The iShares MSCI Emerging Markets ETF (EEM) — pegged to the MSCI Emerging Markets Index — isn’t just the most popular method of getting exposure to emerging markets. At least as far as assets under management are concerned, it’s one of the best index funds in existence, currently seventh with $42 billion invested. EEM holds companies from 21 different markets, though China, South Korea, Brazil and Taiwan enjoy the heaviest overall weightings by country. That includes top holdings such as Samsung (SSNLF), Taiwan Semiconductor (TSM) and China Mobile (CHL). EEM charges 0.67% in expenses.
Updated from Nov. 12, 2013.