Description:
The index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets. The index consists of the following 21 emerging market country indices: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey.
Click to read our 'Analyst Take' for EEM »
Analyst Take:
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.
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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.
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EEM - Charts
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.
EEM is a passive ETF that seeks to replicate MSCI Emerging Markets Index.
The index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets. The index consists of the following 21 emerging market country indices: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey.
The first adjacent table gives investors an individual Realtime Rating for EEM on several different metrics,
including liquidity, expenses, performance, volatility, dividend, and concentration of holdings. The "A+ Metric Rated ETF" field,
available to ETFdb Pro members, shows the ETF in the Emerging Markets Equities ETFdb Category
with the highest Metric Realtime Rating for each individual field.
The second table shows the overall Realtime Rating for EEM, as well as the A+ Overall Rated ETF in EEM's Category.
To view information on how the ETFdb Realtime Ratings work, click here.
EEM In-Depth
The following tables and charts contain in-depth metrics for EEM and compare it to
similar peer ETFs within its ETFdb Category.
Expense Analysis
This section compares the cost efficiency of EEM to peers in the same ETFdb Category.
