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4 Best Emerging Market ETF Buys

A China ETF, an India ETF and other emerging market ETF funds look good now

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iShares MSCI Emerging Markets ETF (EEM)

iShares185Expense Ratio: 0.67%

Perhaps you don’t want to put all of your emerging market investments into a single country. In that case, you should look at funds like the iShares MSCI Emerging Markets ETF (EEM), which is benchmarked to the MSCI Emerging Markets Index.

EEM has 821 holdings, which means much broader exposure than you’d get with the China ETF or India ETF.

The MSCI Emerging Markets Index is fairly heavily weighted in several countries. EEM has allocated 18% of its holdings to Chinese securities, 16% to South Korea, 11.5% to Brazil and 11% to Taiwan. Every other country comprises less than 10% of the fund. Samsung (SSNLF) is the current top holding, at almost 4%, with Taiwan Semiconductor Manufacturing (TSM) and China Mobile (CHL) rounding out the top three.

EEM suffers from the fact that it’s not the most “emerging” of the emerging market ETFs. Many of its holdings do business in developed markets. But that could make this a more stable pick than any other emerging market ETF.

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