Introduction
It is said ETFs are a great way to play the market for the long-term. However, for some of these funds, this notion has become just cliché. Such financial products are instead totally legitimate, but highly speculative bets on specific countries and economic sectors without a warning label for investors. The cap-weighted indexing methodology being the culprit, one perfect example of this problem is the Vanguard FTSE Emerging Markets ETF (VWO).
While there are a total of 4,718 holdings in VWO, the fund is a heavily-skewed play towards China, and in