Topic: How To Invest

ISHARES MSCI EMERGING MARKETS INDEX FUND $41.73 – New York symbol EEM

ISHARES MSCI EMERGING MARKETS INDEX FUND $41.73 (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, 18.6%; South Korea, 15.7%; Brazil, 11.6%; Taiwan, 11.3%; South Africa, 7.4%; Russia, 6.2%; India, 5.8%; Mexico, 5.2%; Malaysia, 3.7%; and Thailand, 2.5%.

The ETF’s top holdings are Samsung Electronics (South Korea), 3.7%; Taiwan Semiconductor (computer chips), 2.3%; China Mobile, 1.8%; China Construction Bank, 1.5%; Tencent Holdings (China: Internet), 1.5%; Industrial & Commercial Bank of China, 1.4%; Gazprom (Russia: gas utility), 1.4%; and America Movil (Brazil: wireless), 1.0%.

The fund’s industry breakdown is as follows: Financials, 26.8%; Information Technology, 14.8%; Energy, 11.7%; Materials, 9.8%; Consumer Staples, 8.8%; Consumer Discretionary, 8.8%; Telecommunication Services, 7.6%; and Industrials, 6.4%.

iShares MSCI Emerging Markets Index Fund was launched on April 7, 2003. It has an expense ratio of 0.68%.

Emerging markets are still more volatile and vulnerable to downturns than markets in the developed world. 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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