The Vanguard FTSE Emerging Markets ETF (VWO) is undergoing a face-lift as it transitions from its MSCI emerging markets index to a FTSE emerging markets index.
FORBES: Emerging Market Flavors Taste Differently At Schwab, Vanguard, iShares
Look no further than the relative performance of VWO and the Schwab Emerging Markets Equity ETF (SCHE), the latter of which tracks a similar version of the FTSE Emerging Markets index.
FORBES: Emerging Market Flavors Taste Differently At Schwab, Vanguard, iShares
Dave Lutz, ETF strategist at brokerage firm Stifel Nicolaus, notes that the FTSE emerging markets index does not currently include South Korea while MSCI puts the country at 15.5% of the index.
And the top 20 companies account for just over a quarter of the FTSE emerging-markets index.
Nevertheless, China equities are still beating the MSCI Emerging Markets index, if measured by the FTSE China Xinhua 25 (FXI) exchange traded fund.
Over the last six months, the iShares FTSE China Xinhua 25 ( FXI) exchange traded fund has outperformed the MSCI Emerging Markets index.
Since June 1, the iShares FTSE Xinhua China ETF is down 4.95%, underperforming the MSCI Emerging Markets index and the MSCI EAFE, both down around 2.9%.
The iShares MSCI Brazil (EWZ) is down 22.4%, Market Vectors Russia (RSX) down 21.8%, Wisdom Tree India (EPI) down 16.4%, iShares FTSE Xinhua China 25 (FXI) down 15.9% and the MSCI Emerging Markets index (EEM) down 19.5% over the last month.
The black box bought the iShares MSCI Brazil (EWZ) ETF, Market Vectors Russia (RSX), Wisdom Tree India (EPI) and iShares FTSE Xinhua China (FXI), among others, instead of Vanguard and iShares MSCI Emerging Markets index funds.
FORBES: The Black Box Says Buy Brazil, Russia, India and China
The financial and real estate heavy iShares FTSE China ( FXI) exchange traded fund is up 2.05 percent year to date, beating the MSCI Emerging Markets Index.
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