ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Direct Indexing
    • Disruptive Technology
    • Energy Infrastructure
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Financial Literacy
    • Fixed Income
    • Gold/Silver/Critical Minerals
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Modern Alpha
    • Multifactor
    • Night Effect
    • Portfolio Strategies
    • Responsible Investing
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Achieving Emerging Markets Exposure Without China
News
Share

Achieving Emerging Markets Exposure Without China

Ben HernandezOct 09, 2019
2019-10-09

When it comes to getting exposure to emerging markets, it’s difficult to ignore adding China to the mix given its relative size. However, like a made-to-order hamburger, individuals can opt to hold the lettuce or in the case of investors, they can exclude exposure to China via the iShares MSCI Emerging Markets ex China ETF (EMXC A).

Given the second largest economy’s recent slowdown, it’s a move to consider if investors still want exposure abroad.

“China is the 800-pound panda in any conversation about what is going on in the world today,” wrote Barron’s Reshma Kapadia. “The nation dominates the headlines, is the most-cited reason for sleeplessness among corporate executives, and puzzles investors daily. China looms particularly large for investors in the emerging markets: It represents an uncomfortably outsize stake in most portfolios. And fund managers are getting nervous.”

China investors could be in for a rude awakening when it comes to third quarter results, according to a quarterly survey by the China Beige Book, which cited slower growth and rising debt labels.

“Nationally, revenue, profits, output, sales volumes, and job growth all slowed from a quarter ago, as did both domestic and export orders,” the report said, which cited China Beige Book’s survey of more than 3,300 Chinese businesses.

EMXC seeks to track the investment results of the MSCI Emerging Markets ex China Index, which is designed to measure equity market performance in global emerging markets. The underlying index is a free float-adjusted market capitalization weighted index that captures large- and mid-capitalization stocks across 23 of the 24 Emerging Markets countries, excluding China.

EMXC generally will invest at least 90% of its assets in the component securities of the underlying index and may invest up to 10% of its assets in certain futures, options and swap contracts, cash and cash equivalents. While emerging markets started the year well, the U.S.-China trade war took its toll as the year wore on, but EMXC is up 4% year-to-date based on Yahoo Finance numbers.


Content continues below advertisement

An E-Commerce Option

Another way to get EM exposure is via e-commerce in funds like the Emerging Markets Internet & Ecommerce ETF (EMQQ C+). EMQQ tracks an index of leading Internet and eCommerce companies serving Emerging Markets. It seeks to offer investors exposure to the growth of online consumption in the developing world. EMQQ holdings operate in diverse markets such as India, China, Brazil, Turkey, Nigeria, and Indonesia, to name a few. To be included, the companies must derive their profits from Ecommerce or Internet activities and include search engines, online retail, social networking, online video, e-payments, online gaming, and online travel.

This article originally appeared on ETFTrends.com

» Popular Pages

  • Tickers
  • Articles

Jun 09

How Advisors Use the Small-Cap ETF 'QWST' in Portfolios

Jun 09

S&P 500: The Battle on Two Fronts

Jun 09

This Is How New Bulls Are Born

Jun 09

Main Management Market Note: June 9, 2023

Jun 09

European Carbon Allowances Up 10%: The Summer Guide

Jun 09

A Complete Comparison of Top U.S. Real Estate ETFs

Jun 09

Could Now Be a Good Time for Value ETFs?

Jun 09

Fine Tuning Your Index Exposure With Direct Indexing

Jun 09

BNDI Generates Better Returns, Yields in Core Bond Allocations

Jun 09

Issuer League: WisdomTree and Dimensional Are Up

QQQM

Invesco NASDAQ 100 ETF

VGT

Vanguard Information...

SPY

SPDR S&P 500 ETF Trust

FNGU

MicroSectors FANG+ Index 3X...

IWM

iShares Russell 2000 ETF

VUG

Vanguard Growth ETF

IYW

iShares U.S. Technology ETF

XLK

Technology Select Sector SPDR...

BOTZ

Global X Robotics &...

IVV

iShares Core S&P 500 ETF


Content continues below advertisement

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X