Worst ETFs – iShares MSCI Emerging Markets Materials ETF (EMMT)
The iShares MSCI Emerging Markets Materials ETF (EMMT) has also been far from one of the best ETFs this year. Taken directly from this iShares ETF fact sheet, the MSCI Emerging Markets Materials Index is a “free float-adjusted market capitalization weighted index designed to measure the combined equity market performance of the materials sector of emerging market countries.”
That exposure to metals and mining hasn’t been very good for EMMT, as investors in this fund have lost 22% this year. Meanwhile, investors who wanted emerging markets exposure but played it safe with the Vanguard FTSE Emerging Markets ETF (VWO) only lost 10% through the same period.
Once again, investors have taken a good idea — emerging markets — and ruined it by combining with a very cyclical sector. This isn’t a fund for amateurs.