2016: a good year for the Emerging Markets
2016 has been a good year for those invested in the emerging markets. We saw emerging market funds (EEM) outperforming developed market funds (EFA) (VEA) by a good measure. The iShares MSCI Emerging Markets ETF (EEM) has returned over 22% for the past 1 year (Feb 2016 to Jan 2017). This, compared to the iShares MSCI EAFE ETF’s (EFA) 7.5% return over the same period clearly validates the point.
Investors often gape at the return numbers that top emerging market funds are able to secure. Many investors attempt to imitate the portfolio of their favorite fund, with the expectation of similar returns. Stocks that are part of these high-yielding emerging market portfolios certainly command investor attention. A filtered list of the top stocks that helped these funds reach their return pinnacles, is something very useful to emerging market investors that find themselves lost amid a universe of investable emerging market stocks.
The biggest 10 Emerging Market funds
We’ve analyzed about 10 of the biggest (by total net assets) emerging market funds; their returns and their top holdings; to provide you with a list of the top stocks that feature in most of these funds top 10 holdings. We will also shed light on the forecasts and market opinion on each of these stocks to serve as a guide for your future investing decisions.
Here’s a list of the funds that we have included in our analysis:
We took a look at the top 10 holdings of these funds and arrived at a list of stocks that hold the largest positions in the portfolios of these emerging market funds. Part 2 of this series sheds light on the top 10 stocks that the largest emerging market funds are overweight on.