SCHE - SCHE: Great Fund Terrible Cycle

2024-05-10 06:22:14 ET

Summary

• Schwab Emerging Markets Equity ETF aims to track the performance of the FTSE Emerging Index and offers exposure to over 20 emerging market countries.
• Top holdings of SCHE include Taiwan Semiconductor Manufacturing Company, Tencent Holdings, Alibaba Group Holding, Reliance Industries, and HDFC Bank.
• The Fund provides a well-diversified sector composition and regional exposure, mitigating concentration risks and offering exposure to various industries and emerging market countries.

Let's face it - broad based emerging markets have been terrible performers. You look at any emerging market diversified index and, for the most part, it's gone nowhere for well over a decade. This despite cheap valuations and underinvestment. For this to change, you really need to have a secular period of dollar weakness, given that there appears to be a strong link between the direction of the Dollar and capital flows to markets outside the US. This will happen at some point, of course, and for long-term investors, that would be the catalyst to consider the Schwab Emerging Markets Equity ETF ( SCHE )....

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