EEM is one of the most popular ETFs in the world, and is one of the oldest products on the market offering exposure to stock markets of emerging economies. Given this objective, EEM can be used in a number of different ways; this ETF can be equally useful as a short-term trade to increase exposure to risky assets or as a core holding in a long-term, buy-and-hold portfolio. EEM certainly qualifies as a portfolio "building block" given the importance of the asset class covered, but it also has some noteworthy flaws. In terms of the exposure offered, there is a lot to like about EEM; the underlying portfolio includes hundreds of stocks from dozens of different emerging markets. Though there are some significant allocations to certain sectors, EEM is generally very well balanced. It should be noted that EEM consists almost entirely of large cap stocks; those looking to round out emerging markets exposure should like funds such as EEMS and EWX as complementary positions. The biggest drawback is the significant expense ratio; EEM is considerably more expensive than VWO, a Vanguard fund that is linked to the exact same index. That means that this ETF is destined to lag behind that alternative in terms of bottom line performance. It should be noted, however, that EEM has a very active options market. So while VWO is generally a better choice for buy-and-holders, this iShares fund can be useful for those looking to implement more advanced strategies that include options. There are a number of alternatives to both EEM and VWO. An equal-weighted fund from Rydex (EWEM) includes the same holdings as VWO but assigns an equivalent weight to each, making it potentially appealing for those seeking to avoid cap-weighted methodologies. WisdomTree's dividend-weighted DEM is another option for those who prefer alternative weightings strategies, as is PXH from PowerShares.
The adjacent table shows a Realtime Rating for several different metrics, including liquidity, expenses, performance, volatility, dividend, concentration of holdings in addition to an overall rating. The "A+ Metric Rated ETF" field, available to ETFdb Pro members, highlights the best rated ETF in the Emerging Markets Equities category for each metric. To view information on how the ETFdb Realtime Ratings work, click here.
View the Category ReportA+ Overall Rated ETF: EEMX
| Metric | Metric Realtime Rating | A+ Metric Rated ETF |
|---|---|---|
| Liquidity | A+ | n/a |
| Expenses | B- | n/a |
| Performance | B | n/a |
| Volatility | B | n/a |
| Dividend | B | n/a |
| Concentration | A | n/a |
The following tables and charts contain in-depth metrics for this ETF and compare it to similar peer ETFs within its ETFdb.com Category.
| Asset | Percentage |
|---|---|
| Common equity | 96.36% |
| Preferred stock | 3.64% |
| Sector | Percentage |
|---|---|
| Technology | 26.43% |
| Financials | 22.78% |
| Consumer, Cyclical | 10.43% |
| Consumer, Non-Cyclical | 8.1% |
| Energy | 7.19% |
| Basic Materials | 6.35% |
| Industrials | 5.4% |
| Telecommunications | 5.33% |
| Real Estate | 2.55% |
| Utilities | 2.5% |
| Healthcare | 2.13% |
| Other | 0.77% |
| Non-Equity | 0.02% |
| Market Cap | Percentage |
|---|---|
| Large cap | 87.04% |
| Mid cap | 9.79% |
| Small cap | 3.14% |
| Micro cap | 0.04% |
| Unknown | 0.0% |
| Region | Percentage |
|---|---|
| Asia | 69.59% |
| Latin America | 10.2% |
| Europe | 9.12% |
| Africa | 5.8% |
| Asia-Pacific | 3.01% |
| Middle East | 1.49% |
| North America | 0.79% |
| Region | Percentage |
|---|---|
| Emerging Markets | 93.7% |
| Developed Markets (ex-US) | 5.08% |
| United States | 0.79% |
| Frontier Markets | 0.26% |
| Not-designated | 0.18% |
| Country | Percentage |
|---|---|
| China | 25.65% |
| South Korea | 16.72% |
| Taiwan | 12.7% |
| India | 7.76% |
| South Africa | 5.77% |
| Brazil | 5.29% |
| Mexico | 3.22% |
| Russia | 2.95% |
| Malaysia | 2.34% |
| Indonesia | 2.25% |
| Thailand | 2.05% |
| Hong Kong | 1.52% |
| Philippines | 1.16% |
| Turkey | 1.03% |
| United Kingdom | 1.01% |
| Poland | 0.97% |
| Chile | 0.83% |
| United States | 0.79% |
| United Arab Emirates | 0.73% |
| Qatar | 0.65% |
| Belgium | 0.54% |
| Colombia | 0.44% |
| Spain | 0.44% |
| Greece | 0.37% |
| Netherlands | 0.33% |
| Italy | 0.33% |
| Hungary | 0.32% |
| Peru | 0.31% |
| Japan | 0.25% |
| France | 0.2% |
| Germany | 0.17% |
| Switzerland | 0.15% |
| Bahamas | 0.11% |
| Czech Republic | 0.1% |
| Egypt | 0.09% |
| Pakistan | 0.09% |
| Romania | 0.06% |
| Portugal | 0.05% |
| Australia | 0.05% |
| Mauritius | 0.04% |
| Cyprus | 0.03% |
| Malta | 0.03% |
| Singapore | 0.03% |
| Azerbaijan | 0.02% |
| Liechtenstein | 0.02% |
| Saudi Arabia | 0.02% |
| Luxembourg | 0.01% |
This section compares the cost efficiency of this ETF to peers in the same ETFdb.com Category.
This ETF is not currently available for commission free trading on any platforms.
There are 37 other ETFs in the Emerging Markets Equities ETFdb.com Category that are also eligible for commission free trading:
This section shows how this ETF has performed relative to its peer group ETFdb.com Category.
The following charts can be customized to display historical performance in a number of different formats, including line charts, bar charts, and candlesticks. Time periods can be adjusted to increase or decrease the period shown, ranging from five minutes to several months.
The following chart also includes the option to compare the performance of EEM relative to other ETFs and benchmarks or to include indicators such as Bollinger Bands, relative strength, and moving averages.
This section shows how the P/E multiple of this ETF compares to the peer group ETFdb.com Category.
This section shows how the dividend yield of this ETF compares to the peer group ETFdb.com Category.
This section shows how the volatility of this ETF compares to the peer group ETFdb.com Category.
Fact sheets are issued by the ETF provider and framed by ETFdb.com. Information contained within the fact sheet is not guaranteed to be timely or accurate.
To help investors keep up with the markets, we present our ETF Scorecard. The Scorecard takes a...
Below is a look at ETFs that currently offer attractive buying opportunities.
The ETFs included...
To help investors keep up with the markets, we present our ETF Scorecard. The Scorecard takes a...
Source: LSEG Information Services (US), Inc. (“LSEG”) © LSEG 2016. All rights in the XTF data, ratings and / or underlying data contained in this communication (“the XTF information”) vest in LSEG and/or its licensors. Neither LSEG nor its licensors accept any liability arising out of the use of, reliance on or any errors or omissions in the XTF information. No further distribution of the XTF information is permitted without LSEG’s express written consent. LSEG does not promote, sponsor or endorse the content of this communication.
Creating a properly diversified portfolio can be a difficult proposition, especially when...
Low Volatility ETFs invest in securities with low volatility characteristics. These funds tend to have relatively stable share prices, and higher than average yields.
Investors who suspect that the stock market may be about to decline can take action to reduce the...
