Emerging market ETF’s
Are there any emerging market ETF on the ASX and if so what are they? Can you please give a brief summary of your opinion on each and which do you think is best? Thank you
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Answer
Hi Boon,
There is a few Emerging Market facing ETFs on the ASX including the 3 below:
- Vanguard FTSE Emerging Markets Shares ETF (VGE) a $1.6bn ETF which charges 0.48% for exposure to a broad basket of emerging-market equities across Several thousand EM equities (large, mid, small caps).
- iShares MSCI Emerging Markets ETF (IEM) a $1.4bn ETF which charges 0.7% for exposure to the MSCI Emerging Markets Index = 800+ mid and large-cap stocks across EMs.
- BetaShares MSCI Emerging Markets Complex ETF (BEMG) a small $8.8mn ETF which charges 0.35% and looks to track the MSCI Emerging Markets Index.
We would opt for the IEM ETF for a simple, broad, diversified, long-term exposure to emerging markets through an ASX-listed ETF that tracks the world’s most recognised EM index. It may have the highest fees of the ones above but over the last 12-months it returned +24.2%, beating the VGE while the BEMG ETF hasn’t yet been operating for a year.
