VWO - EMXC: The Good And The Bad
2024-01-27 02:47:52 ET
Summary
- iShares MSCI Emerging Markets ex China ETF has outperformed the largest EM ETF- VWO since its inception, and has also done a better job of juggling its risk profile.
- EMXC offers access to attractive growth regions, particularly India, which is expected to be the fastest-growing major economy in the world and will likely benefit from political stability.
- EMXC's lack of exposure to China has been beneficial as the Chinese economy and markets continue to struggle. However, this sectoral preference may soon work against EMXC.
- The risk-reward on the weekly chart does not look attractive.
Introduction
The iShares MSCI Emerging Markets ex China ETF (EMXC) is a $9bn sized ETF, that has been providing exposure to non-China based emerging market ((EM)) stocks, for close to 7 years now. The focus universe here consists of stocks that belong to the following EMs- Brazil, Chile, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Kuwait, Malaysia, Mexico, Peru, the Philippines, Poland, Qatar, Saudi Arabia, South Africa, South Korea, Taiwan, Thailand, Turkey and the United Arab Emirates. In effect, EMXC covers over 700 stocks from these markets....
EMXC: The Good And The Bad