ISHARES MSCI EMERGING MARKETS INDEX FUND $33.10 (New York symbol EEM; buy or sell through brokers) aims to track the MSCI Emerging Markets Index.
The fund’s geographic breakdown includes China, 24.0%; South Korea, 15.3%; Taiwan, 12.8%; India, 8.0%; South Africa, 6.4%; Brazil, 5.7%; Mexico, 4.6%; Russia, 3.7%; Malaysia, 3.5%; Indonesia, 3.0%; Thailand, 2.3%; and Turkey, 1.5%.
Its top holdings are Samsung Electronics (South Korea), 3.4%; Taiwan Semiconductor (computer chips), 3.4%; Tencent Holdings (China: Internet), 3.2%; China Mobile, 2.0%; Naspers (South Africa: media and Internet), 1.6%; China Construction Bank, 1.5%; Industrial & Commercial Bank of China, 1.1%; and Hon Hai Precision (Taiwan), 1.0%.
iShares launched the ETF on April 7, 2003. Its expense ratio is 0.70%.
Emerging markets are still more volatile and vulnerable to economic downturns than developed nations. But this fund’s broad diversification among these 12 countries tones down its risk.
iShares MSCI Emerging Markets Index Fund is a buy for aggressive investors.