Emerging Markets ETF

Emerging Markets are countries or regions that have lagged behind but are now swiftly catching up. In Emerging Markets it is all about the potential of high growth rates. Real emerging economies may show growth percentages of 10% or more. Such figures are not attainable for developed and mature economies.

Companies who are active in Emerging Markets will see subsequent growth figures. An extra leverage may occur when they can profit from still low labor costs which may result in the “ideal” situation of a company with high growth figures and low production costs.

This makes further way for export opportunities and may result in transforming a small regional company into a new multinational company. Naming an example that comes to mind would be Samsung which is still incorporated into this Emerging Markets ETF (and has the largest weight in this ETF).

The flipside of Emerging Markets is that they often outpace a sound growth path resulting in a bumpy ride of fast growth and sharp drops. Generally speaking they often find their way back to sustainable and sound growth rates.

All in all, this Emerging Markets ETF offers great opportunities but risks are considerable and finding the right entry and exit points will be crucial. 

iShares MSCI Emerging Markets UCITS ETF (Dist)

This particular iShares MSCI Emerging Markets ETF is not a small one, it contains 800 companies spread out over 17 countries.

The capital invested is also considerable. It is a physical ETF so the underlying stocks have to be bought. Quarterly dividends are being paid out.

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