"The revival in EM equities has been driven less by any single-country story and more by a combination of a weaker dollar, resilient semiconductor demand benefiting Taiwan and Korea, and renewed foreign flows into China and India."
"The three funds represent genuinely different views on the same opportunity set. One is the cheapest, broadest way to own the asset class, while the other is the benchmark institutions' trade."
"The differences in index construction, country inclusion, and management style explain most of the performance dispersion among them."
"VWO tracks the FTSE Emerging Markets All Cap China A Inclusion Index, which gives it two structural features that matter."
Emerging-market equities have experienced significant growth, with the Vanguard Emerging Markets Stock Index Fund ETF Shares up 37%, iShares MSCI Emerging Markets ETF up 53%, and Avantis Emerging Markets Equity ETF up 56%. The performance differences highlight the importance of investment strategy and access methods. Factors driving this revival include a weaker dollar, strong semiconductor demand, and increased foreign investment in China and India. Each ETF captures the emerging market landscape differently, influenced by index construction and management style.
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