Quick Read – IEMG attracted $22 billion in new investor money over 12 months, a figure more than double VWO’s inflows, and returned 33% versus VWO’s 20%. – South Korea’s MSCI emerging market status puts Samsung and SK Hynix in IEMG’s top 3 holdings, while VWO excludes both…
tirely. – The KOSPI’s 10% drop over the past month has erased IEMG’s earlier edge, with VWO now returning 1.6% versus IEMG’s 1.1%. – International investing has spent years playing second fiddle to the U.S. stock market. That is changing
As investors look beyond a handful of mega-cap technology stocks, capital is flowing into emerging markets at a pace not seen in years. Fund assets are climbing to record levels, performance has improved, and interest in artificial intelligence has expanded beyond Silicon Valley. Yet not all emerging markets ETFs are built the same.
A single index decision has created a widening performance gap that every investor should understand before adding one of these funds to a portfolio. Record Inflows Show Investors are Looking Overseas According to Bloomberg data, investors have poured money into emerging markets at a remarkable pace over the past year. The iShares Core MSCI Emerging Markets ETF (NYSEARCA:IEMG) now manages a record $160 billion in assets under management, while the Vanguard FTSE Emerging Markets ETF (NYSEARCA:VWO) has climbed to a record $120 billion.