ETFdb Realtime Rating & Analyst Report for EEM
EEM is a passive ETF that seeks to replicate the MSCI Emerging Markets Index. The index measures the performance of the emerging market stocks.
| ETFdb Category | Expense Ratio | Inception Date | Issuer | Structure | YTD Return * |
|---|---|---|---|---|---|
| Emerging Markets Equities | 0.67% | 2003-04-07 | iShares | ETF | -1.11% |
* As of 05-23-2012
EEM Realtime Rating: By Metric
| Metric | Metric Realtime Rating | A+ Metric Rated ETF |
|---|---|---|
| Liquidity | A+ | EEM |
| Expenses | B- | VWO |
| Performance | B | EPHE |
| Volatility | B | EWM |
| Dividend | B- | GULF |
| Concentration | A | VWO |
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.
EEM Realtime Rating: Overall
| ETFdb Rating Type | Overall Rating | A+ Overall Rated ETF |
|---|---|---|
| Realtime Rating (Overall) | B+ | EGRW |
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.
ETFdb Analyst Report for EEM
Asset Allocation
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.
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.
| EEM | ETF Average | ETF Wtd. Avgerage |
|---|---|---|
| 0.67% | 0.59% | 0.32% |
Comparative Analysis: Emerging Markets Equities ETFdb Category
| Lo | Average | Hi | EEM Rank |
|---|---|---|---|
| VWO: 0.20% | 0.64% | MES: 0.99% | 41 of 65 |
Commission Free Trading in EEM
EEM is currently available for commission free trading on the following platforms: Fidelity. There are 12 other ETFs in the Emerging Markets Equities ETFdb Category that are also eligible for commission free trading: ASEA (E*TRADE, Interactive Brokers), BKF (TD Ameritrade), DBEM (E*TRADE), DEM (E*TRADE), DGS (E*TRADE), EPI (E*TRADE, TD Ameritrade), EWX (TD Ameritrade), GULF (E*TRADE), GUR (TD Ameritrade), RSX (TD Ameritrade), SCHE (Charles Schwab), VWO (Firstrade, TD Ameritrade, Vanguard).
Performance Analysis
This section shows how EEM has performed relative to its peer group ETFdb Category.
| EEM | Category Lo | Category Hi | EEM Rank | |
|---|---|---|---|---|
| 1 Week* | -1.70% | EVAL: -8.40% | PMNA: 4.12% | 20 of 65 |
| 4 Week* | -10.65% | RSX: -18.19% | PMNA: -1.85% | 34 of 65 |
| 13 Week* | -14.40% | SCIF: -29.23% | PMNA: -0.33% | 30 of 60 |
| 26 Week* | 4.57% | RSXJ: -12.63% | EGPT: 29.74% | 21 of 54 |
| YTD* | -1.11% | RSXJ: -11.97% | EGPT: 31.37% | 30 of 54 |
| 1 Year* | -17.82% | PLND: -39.64% | EPHE: 13.27% | 25 of 49 |
| 3 Year* | 24.33% | PIN: -10.78% | THD: 128.34% | 14 of 29 |
| 5 Year* | -5.11% | GUR: -36.72% | EWM: 28.89% | 7 of 11 |
* As of 05-23-2012
Volatility Analysis
This section shows how the volatility of EEM compares to the peer group ETFdb Category.
| EEM | Category Lo | Category Hi | EEM Rank | |
|---|---|---|---|---|
| Volatility: 5 Day* | 33.76% | EELV: 1.89% | INP: 287.60% | 39 of 65 |
| Volatility: 20 Day* | 16.63% | ASEA: 11.90% | EEHB: 44.72% | 45 of 62 |
| Volatility: 50 Day* | 18.48% | FRN: 13.24% | VNM: 35.92% | 36 of 58 |
| Volatility: 200 Day* | 20.07% | EWM: 13.29% | SCIF: 37.19% | 33 of 54 |
| Beta* | 1.38 | ASEA: 1.00 | EEME: 2.77 | 36 of 60 |
| Standard Deviation* | 3.24% | GULF: 0.43% | INP: 6.42% | 19 of 48 |
* As of 05-23-2012
Technical Analysis
This section highlights technical strength metrics for EEM.
| Moving Averages * | Support & Resistance * | Williams & Rel. Strength * | |||
|---|---|---|---|---|---|
| 20 Day MA | $40.13 | Lower Bolinger (10Day) | $36.43 | Williams % (10) | 79.51 |
| 60 Day MA | $42.04 | Upper Bolinger (10Day) | $40.66 | Williams % (20) | 86.59 |
| MACD 15 Day | -1.88 | Lower Bolinger (30Day) | $37.26 | Rel. Strength (10) | 26 |
| MACD 100 Day | -4.48 | Upper Bolinger (30Day) | $44.34 | Rel. Strength (20) | 31 |
| Support Level | $36.96 | Rel. Strength (30) | 36 | ||
| Resistance Level | $37.82 | ||||
* As of 05-23-2012
Dividend & Valuation Analysis
This section shows how the dividend yield and P/E multiple of EEM compare to the peer group ETFdb Category.
| EEM | Category Lo | Category Hi | EEM Rank | |
|---|---|---|---|---|
| Annual Dividend Yield* | 2.12% | INP: 0.00% | GULF: 6.23% | 34 of 55 |
| P/E Ratio* | n/a | EPOL: n/a | INP: 20.51 | 38 of 48 |
* As of 05-23-2012
Concentration Analysis
This section compares how balanced and deep EEM is relative to the peer group ETFdb Category.
| EEM | Category Lo | Category Hi | EEM Rank | |
|---|---|---|---|---|
| Number Of Holdings** | 850 | INP: n/a | VWO: 900 | 63 of 64 |
| % Assets In Top 10** | 16.22% | INP: n/a | ERUS: 74.21% | 15 of 64 |
**As of 2012-05-03
ETF X-Ray**
This section provides a look under the hood of EEM.
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**As of 2012-05-03
Alternative ETFs
Other ETFs in the Emerging Markets Equities ETFdb Category include:
| Type | Ticker | Expense Ratio | Assets | Avg. Daily Vol | YTD Return |
|---|---|---|---|---|---|
| Cheapest | VWO | 0.20% | $47,685.2 M | 21,439,332 | -0.65% |
| Largest (AUM) | VWO | 0.20% | $47,685.2 M | 21,439,332 | -0.65% |
| Most Liquid (Volume) | VWO | 0.20% | $47,685.2 M | 21,439,332 | -0.65% |
| Top YTD Performer | EGPT | 0.94% | $43.4 M | 36,467 | 31.37% |
© 2012 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
