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Emerging Market Stocks ; 5 Pros' Top Picks For 2013
WAFMX (for frontier markets) opened a year ago, and during this year it performed even much better than WAEMX, 30% up in 11 months or so. Of course, frontier markets is a wild animal, but so far so good. Recently Wasatch opened another fund, WAESX (Emerging markets select), which is going to invest in a small number of stocks of all sizes, see https://secure.wasatchfunds.com/News/Article.aspx?a=Emerging Markets Select Launch Press Release.
Reply to @Old_Joe: Wasatch has the tendency to close their funds early at low asset level. The announcement came out well over several months prior to closing. You may want to look at other Wasatch offerings in similar space - see andrei posting below.
I'm looking for funds or strategies that captures the periodic out performance as well as captalizes on the periodic underperformance of emerging market equities. Something along the line of a Matthews Income fund, but in the Emerging Market space. Right now I pair WAEMX with a Global Debt fund, like TGEIX (TCW Emerging Market Income) or FNMIX (Fidelity New Markets Income), and I try to capture and capitalize on WAEMX as it trends above and below TGEIX. Capture would be taking profits when WAEMX is 10% above TGEIX. Capitalizing would be investing (Dollar Cost Average) into WAEMX from TGEIX when WAEMX is not out performing.
Since the article touched upon numerous Emerging Market ETF recommendations - I thought I'd throw out there an interesting new ETF --- FlexShares Morningstar Emerging Markets Factor Tilt Index Fund (TLTE)
Currently the ETF holds 1,699 stocks and so it is very diversified from a stock exposure perspective. Market Cap Exposure... Large-cap: 45.25% | Mid-cap: 19.18% | Small-cap: 32.03% | Micro-cap: 3.54%
FlexShares® Morningstar Emerging Market Factor Tilt Index ETF seeks to enhance exposure to developing market stocks by tilting the portfolio toward the long-term growth potential of the small cap and value segments. It seeks to provide investors with an emerging market equity option that helps to meet their longer term capital appreciation needs. Designed to replace traditional market-weighted emerging market equity products, the Fund applies a tilt to smaller cap and value stocks using a multi-factor modeling approach that attempts to enhance portfolio risk/return characteristics. Realized capital gains and income dividends are anticipated to be declared and paid at least annually.
EGShares also added an interesting Emerging Markets ETF --- EGShares Emerging Markets Core ETF (EMCR).
The EGShares Emerging Markets Core exchange-traded fund (ETF) seeks investment results that correspond to the price and yield performance of the S&P Emerging Markets Core Index. The S&P Emerging Markets Core Index is a modified equally-weighted index designed to measure the market performance of up to 116 leading companies that S&P Dow Jones Indices determines to be representative of all industries domiciled in emerging market countries, using a rules-based methodology.
Many EM investors have country and industry concentrations because they use conventional benchmarks as investment portfolios.
We chose the S&P Emerging Markets Core Index because it is designed to:
• Diversify industry exposure by reducing concentration in legacy frontier market sectors • Tap into available liquidity to gain exposure to potentially emerging industries • Reduce more mature economy exposure, broadening EM country diversification • Serve as an investment index rather than a benchmark
Comments
For smaller caps, Wasatch Emerging Small Caps, WAEMX, has performed very well since inception.
Currently the ETF holds 1,699 stocks and so it is very diversified from a stock exposure perspective. Market Cap Exposure...
Large-cap: 45.25% | Mid-cap: 19.18% | Small-cap: 32.03% | Micro-cap: 3.54% Fact Sheet:
http://www-ac.northerntrust.com/content//media/attachment/data/white_paper/1209/document/tlte_factsheet.pdf?1356493091219
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EGShares also added an interesting Emerging Markets ETF --- EGShares Emerging Markets Core ETF (EMCR). Fact Sheet:
http://emergingglobaladvisors.com/pdf/literature/FactSheet/EMCR_Fact_Sheet.pdf
Insights:
http://emergingglobaladvisors.com/pdf/articles/Industry Diversification in EM Core Holdings -- A Different Index Choice.pdf
http://seekingalpha.com/article/1078031-the-top-diversified-emerging-market-etfs-for-2013