Topic: How To Invest

ISHARES MSCI EMERGING MARKETS INDEX FUND $40.89 – New York symbol EEM

ISHARES MSCI EMERGING MARKETS INDEX FUND $40.89 (New York symbol EEM; buy or sell through brokers) aims to track the MSCI Emerging Markets Index.

Its geographic breakdown includes China, 19.9%; South Korea, 14.1%; Taiwan, 12.1%; Brazil, 9.8%; South Africa, 8.0%; India, 7.1%; Mexico, 5.2%; Russia, 4.3%; Malaysia, 3.7%; Indonesia, 2.6%; Thailand, 2.5%; and Turkey, 1.8%.

The fund’s top holdings are Samsung Electronics (South Korea), 2.9%; Taiwan Semiconductor (computer chips), 2.8%; Tencent Holdings (China: Internet), 2.1%; China Mobile, 1.9%; Naspers (South Africa: media and Internet), 1.3%; China Construction Bank, 1.3%; Industrial & Commercial Bank of China, 1.2%; Itau Unibanco Holding (Brazil: banking), 1.1%; and America Movil (Mexico: wireless).

Its industry breakdown includes: Financials, 27.2%; Information Technology, 16.7%; Energy, 9.9%; Consumer Discretionary, 9.0%; Materials, 8.3%; Consumer Staples, 8.2%; Telecommunication Services, 7.7%; and Industrials, 6.6%.

The fund was launched on April 7, 2003. Its expense ratio is 0.67%.

Emerging markets are still more volatile and vulnerable to downturns than developed nations, but this fund’s broad diversification among these countries tones down its risk.

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

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