Top 10 Largest Emerging Market ETFs In The World

Largest emerging market ETFs

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The US equity market has delivered impressive returns over the last decade. The S&P 500 index has shot up 188% since 2010. It’s by far the longest bull run in history. The US equity markets have even outperformed international equities. Just for comparison, the MSCI World ex-US Index has gained only 50% since 2010. Several analysts and financial market strategists believe it’s time to allocate a larger portion of your portfolio to international equities, especially emerging markets. The simplest way to gain exposure to emerging markets is through emerging-market exchange-traded funds (ETFs). Here we take a look at the top 10 largest emerging market ETFs in the world.

Global economic indicators suggest the slowdown may have bottomed out. The US-China trade tensions have also started showing signs of easing. Morgan Stanley economist Chetan Ahya recently told clients that the “improvement in manufacturing and trade can be sustained.”

Emerging market ETFs invest in companies or assets based in emerging countries such as China, India, Russia, and others. Depending on the underlying index they are tracking, ETFs could hold assets in stocks, bonds, or commodities.

Before you invest in an ETF, it's important to look at its assets under management (AUM), trading volume, and expense ratio. The higher AUMs enable ETFs to track their indices more closely. If the trading volumes are high, the ETF will have a tighter spread.

These are the largest emerging market ETFs based on their assets under management (AUM). The ranking is based on the latest data from ETFdb.

10- Schwab Fundamental Emerging Markets Large Company Index ETF (FNDE), $2.8 billion

FNDE has delivered cumulative returns of 35.69% in the last five years and 18.45% in three years. Its expense ratio is 0.39%. The ETF tracks the Russell RAFI Emerging Markets Large Company Index, which measures the performance of companies in China, Taiwan, Russia, Brazil, India, and other emerging markets. Its largest holdings are Gazprom, TSMC, Lukoil, and China Construction Bank.

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Disclaimer: This article is NOT an investment recommendation, Please see our disclaimer - Get our 10 free ...

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