Emerging Markets minimum volatility ETF

There is an ETF for every problem. Trading in emerging markets may be a very bumpy ride. Strong market corrections are by no means a peculiarity. If you don’t like that, well, then this Emerging Markets minimum volatility ETF is your pick. 

It is a low volatility ETF which means that the stocks included in this ETF tend to go down slower and less than average during market corrections. So, in fact it is a “sleep better ETF”. 

Of course, volatility is not a market sector but when you decide to invest in emerging markets this ETF may very well suit you perfectly, that is why I put it right here.  

iShares MSCI Emerging Markets Minimum Volatility UCITS ETF

This iShares ETF is tracking the MSCI Emerging Markets Minimum Volatility Index. You will find more than 250 low volatility stocks from companies originating from emerging markets in this index and ETF.

The spread is wide with 18 countries and 10 market sectors. A better spread is almost unthinkable (especially when you consider that adding to a risk avoiding strategy only low volatility stocks are included). 

Taking a look at the country-wide spread China is the dominating country here with a share of 18%. Taiwan follows closely with a 17% share and South Korea comes in third with a 12% share.

The financial market sector is dominating this minimum volatility ETF but that is no surprise at all. Basic consumer goods (daily foods and drinks) has a share of 13%. Telecommunications is third with a share of 12% (smartphones are a basic need today).

Looking at individual stocks no single company is dominating this Emerging Markets ETF as the largest company is only weighed at 1%. This iShares ETF is a physical ETF so iShares is buying the underlying stocks.

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