FYI: At present, the application of a market-cap-weighted approach to emerging markets results in a quirk. All of these cap-weighted index trackers have roughly one third of their assets parked in stocks from China, which disrupts their geographic diversification. As a result, low-cost, cap-weighted emerging-markets funds from Vanguard, iShares, and Schwab all carry Bronze ratings--an indication that we still have a favorable of view these strategies but have less confidence in their ability to perform well against their peers.
Regards,
Ted
http://www.morningstar.com/articles/854502/marketcapweighting-dials-up-country-concentration-.html
