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ETF expert Doug Fabian examines an emerging market fund that declines less than the markets during bearish seasons, thanks to its emphasis on reducing risk.

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Emerging Market Fund Offers Reduced Risk

ETF expert Doug Fabian examines an emerging market fund that declines less than the markets during bearish seasons, thanks to its emphasis on reducing risk.

Broad-based emerging markets exchange-traded fund (ETF) iShares Edge MSCI Min Vol Emerging Markets ETF (NYSE: EEMV) features holdings in Asian countries such as China, Taiwan, Malaysia and Indonesia that have shown more consistent growth than many other developing economies.

Many of the companies held by EEMV are large- and mid-capitalization equities. However, EEMV has an investment objective that distinguishes it from its peers by investing in emerging market equities that exhibit less aggregate volatility than broader emerging equity markets.

As a result of its focus on reducing volatility, EEMV historically has declined less than the market during market downturns. A comparison of EEMVâ??s performance versus the general Emerging Markets Index can be viewed here.

EEMV, with $4.4 billion in total assets, has had a year-to-date return of 11.69%, beating the S&P 500â??s return of 6.12%. The upward trend of the fundâ??s share price is shown in the chart below. The fund has had an overall positive run since its inception in 2011, producing a total return of 22.22%. It also has a dividend yield of 2.40% and an expense ratio of 0.69%.

eemv

View the current price, volume, performance and top 10 holdings of EEMV at ETFU.com.

Its top five holdings are Tencent Holdings Ltd, 1.84%; Taiwan Semiconductor Manufacturing Co Ltd, 1.73%; Taiwan Mobile Ltd, 1.47%; Chunghwa Telecom Co Ltd, 1.45%; and Public Bank, 1.34%. EEMV typically holds onto its investments for the long term, as it seeks to exploit the observed phenomenon that portfolios with smaller price fluctuations tend to outperform portfolios with larger price fluctuations over the long term.

If you are looking for a stable, long-term fund targeting different markets to add to your portfolio, consider iShares Edge MSCI Min Vol Emerging Markets ETF (NYSE: EEMV).

Written By

Doug Fabian is the editor of Successful Investing and High Monthly Income, and is the host of the syndicated radio show, "Doug Fabian's Wealth Strategies." Taking over the reigns from his dad, Dick Fabian, back in 1992, Doug has continued to uphold the reputation of the newsletter as the #1 risk-adjusted market timer as ranked by Hulbertâ??s Investment Digest. For more than 30 years, Successful Investing (formerly the Telephone Switch Newsletter) has produced double-digit annual gains. Doug has become known for his expert knowledge and timely use of innovative tools like Exchange Traded Funds, bear funds and Enhanced Index funds to profit in any market climate.

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