iShares Emerging Markets ETF (IEM) $82.51

This ETF provides exposure to a diversified portfolio of large and mid-cap companies across emerging market economies such as China, India and Brazil. The IEM is exposed to oil as its core exposure is in countries that are significant oil importers, i.e. higher oil prices create a headwind for the ETF.  However, we particularly like the ETF because it’s effectively a “global AI supply chain + emerging market recovery” trade, supported by currency (weak $US) and valuation tailwinds.

• We believe the pullback in the IEM ETF, primarily due to rising oil prices, is an excellent risk/reward entry opportunity.