Best Funds: iShares MSCI Emerging Markets ETF (EEM)
In speaking with a friend who used to manage one of the best emerging-market mutual funds, she believes the emerging market selloff is overdone, and that there is fabulous long-term value here. I tend to agree … but I only had a small mutual fund position in emerging markets, so I’ve added the iShares MSCI Emerging Markets ETF (EEM).
EEM gives you exposure to a number of emerging markets, though it’s most heavily weighted in China (18%), South Korea (15.9%), Taiwan (12.2%) and Brazil (10.6%). It’s also got more than a quarter of its holdings in financials and another 17% in information technology, so as long as you’re comfortable with those heavy sector leans, you’re fine.
EEM charges 0.67% in fees.