Topic: How To Invest

ISHARES MSCI EMERGING MARKETS INDEX FUND $39.91 – New York symbol EEM

ISHARES MSCI EMERGING MARKETS INDEX FUND $39.91 (New York symbol EEM; buy or sell through brokers), is an exchange traded fund that aims to track the MSCI Emerging Markets Index. Its geographic breakdown includes China, 17.4%; South Korea, 15.2%; Brazil, 13.2%; Taiwan, 11.0%; South Africa, 8.0%; India, 6.2%; Russia, 5.8%; Mexico, 4.7%; Malaysia, 3.7%; and Indonesia, 2.7%.

The fund’s top holdings are Samsung Electronics (South Korea: electronics), 3.5%; China Mobile, 1.9%; Taiwan Semiconductor (Taiwan: computer chips), 1.8%; America Movil (Brazil: wireless), 1.6%; Gazprom (Russia: gas utility), 1.5%; China Construction Bank (China: banking), 1.4%; Petrobras Petroleo (Brazil: energy), 1.2%; Vale SA (Brazil: mining), 1.1%; and Industrial & Commercial Bank of China, 1.2%.

The fund’s industry breakdown is as follows: Financials, 24.1%; Information Technology, 13.7%; Energy, 12.7%; Materials, 12.1%; Consumer Staples, 8.5%; Consumer Discretionary, 8.1%; Telecommunication Services, 8.1%; Industrials, 6.9%; Utilities, 3.8%; and Health Care, 1.1%.

iShares MSCI Emerging Markets Index Fund was launched on April 7, 2003. The ETF has an expense ratio of 0.67%.

Emerging markets are still far more volatile and vulnerable to downturns than markets in the developed world. But this fund’s wide diversification among emerging markets tones down its risk.

iShares MSCI Emerging Markets Index Fund is a buy for aggressive investors.

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