About EEM ETF
EEM tracks emerging markets firms and has easy access to 800+ emerging market stocks and can be used to diversify internationally and seek long term growth. The main difference between the benchmark and the ETF is that the ETF ignores many small-cap and all micro-cap firms. Nevertheless, the coverage is excellent. Since it follows an MSCI index, EEM counts South Korea as emerging. From a geographical perspective, it has 30.0% exposure to China, 14.7% to South Korea and 11.6% to Taiwan. Technology, Financials and Consumer Discretionary are the top sectors of the fund, with 27.7%, 24.0% and 9.6% allocation, respectively.
Where Are Emerging Markets Headed Next? (EEM)
About the Fund Manager:
Founded in 1988, Blackrock is the largest asset manager in the world managing $6.28T. BlackRock operates globally with 70 offices in 30 countries and clients in 100 countries. Due to its power and the sheer size and scope of its financial assets and activities, BlackRock has been called the world's largest shadow bank.
How did we identify this ETF:
A complete pool of 2100+ ETFs are screened on various qualitative and quantitative parameters to evaluate efficiency, tradability and fit. The metrics used were alpha, beta and R-Squared with respect to the segment benchmark and ETF specific metrics such as expense ratio, drawdown, volatility and the overall rating. We evaluate all ETFs and assign a composite score based on our analysis and then select the top ones in a category based on that comprehensive score by the inhouse research / quant analysts team. Even though EEM expense ratio is high (0.7%), it is overlooked by its high tracking, massive AUM ($42B) and hefty trading volume contributing to its solid liquidity. The strategy is rebalanced on a quarterly basis with the rebalancing mechanism being determined by an algorithm that takes into account the overall performance of the strategy so far.