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Thread: Small-cap Emerging Market ETFs

  1. #1
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    Small-cap Emerging Market ETFs

    http://finance.yahoo.com/news/guide-...153027019.html

    So I've been looking to add a small-cap emerging market ETF to my portfolio, in order to more accurately capture the emerging market market ideal (investing in the growth stocks of that market that thrive from a rising middle class, rather than investing in big banks of each nation that have already grown). Does anyone have experience with any of the funds listed in the article?

    For reference:

    SPDR S&P Emerging Market Small Cap ETF (EWX)

    WisdomTree Emerging Markets SmallCap Dividend Fund (DGS)

    iShares MSCI Emerging Markets Small Cap Index Fund (EEMS)

    First Trust Emerging Markets Small Cap AlphaDEX Fund (FEMS)


  2. #2
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    Small-cap Emerging markets in one sentence. Sounds like disaster.

    Have you a more specific question? Any experience with an ETF is pretty generic? They are bought and sold easily? Volume is pretty low? All the details about the funds should be in their prospectus including tracking errors etc.

  3. #3
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    Check out http://www.etfchannel.com/ A lot of usefull info about all US existing ETFs

  4. #4
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    VSS is about 25% EM, growthy and low MER. ~15% Canadian, the rest is ex-NAm developed.

    Spreads can hurt. Watch out for those if you are interested in any less popular etfs.

  5. #5
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    Buying this type of ETF will likely increase the volatility of your overall portfolio with no guarantee of better long term returns. From the school of hard knocks, I have learned to stick with the broad-based ETF's with the lowest fees and the largest trading volumes. K.I.S.S.

    http://www.theglobeandmail.com/globe...rticle4567353/
    Last edited by Belguy; 2012-09-25 at 08:21 PM.

  6. #6
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    As an aside, does anyone have any opinions on this Morningstar 5-star fund?

    http://www.mawer.com/mutual-funds/fu...mall-cap-fund/

    Small caps is one sector where professional management could add long term value.

  7. #7
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    Article concerning emerging markets ETF's:

    http://www.indexuniverse.com/hot-top...lart=1&start=2

    What percentage of your portfolio is allocated to emerging markets equities?


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