Daniel StrausVANGUARD FTSE EMERGING MKTS ALL CAP IDXVEE.TOTOP PICKJan 22, 2020

Includes China, Taiwan, India, and Brazil. Investors would do well to look beyond NA and at places like EMs. This ETF includes no South Korea, and you'd want that. Instead, take a look at XEM.

He likes everything international. He owns another EM ETF that's done very well. VEE's chart is in an uptrend, including a big jump in early 2025. It could consolidate and as long as it stays within old highs and lows, it's healthy.

Likes EMs, and most of them are on the asset-heavy side of the equation. Valuations are quite a bit lower than US stocks.

Granddaddy is VEE. Weighted by cap, very broad, very large. Cheap and cheerful with a MER of 25 bps. Exposure to China as well.

A more active choice is CIEM. MER is just over 1% (the MER always goes up with active strategies).

Low-cost exposure to all the emerging markets in the world. These markets are less expensive than the US. Probably a lot of the next decade's growth will come from them -- driven by better demographics, rising middle classes, industrialization, and realignment away from China.

Most investors are probably underweight EMs. Great opportunity to diversify. It's an inflation hedge, too. With commodity price inflation, fast-growing EMs tend to do very well.

Pick predicated on Chinese economy improving. Also a way to diversify. India has done remarkably well, Brazil is benefiting from US-China trade tensions. EMs are back in vogue.

Many investors are ignoring emerging markets, and this in itself creates potential. They are very cheap vs historical levels. Much of the pain has come from a strong US dollar. When US interest rates come down this might be the catalyst needed. But we would expect heightened volatility for sure around the US election. It comes down to confidence. If US investors are confident, they will move some money to other countries. A strong US economy can 'pull' others along as well. The current 'the US is the only alternative' mentality may last longer, but we don't think it lasts forever. Thus, we think small exposure internationally still makes good sense overall. 
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He's been out of emerging markets because of weakness in China. But now he sees signs of promise in China. VEE is a play on China. EM is riskier than other areas, though.

VEE vs. XID VEE covers EM. XID: India has a young working population who speak English. India fits well into global commerce. If they build their infrastructure, India will do well. Problem is, everyone knows India's long-term story and already have high expectations. India has been underperforming the past year, so he wants to see India cheaper and offer better performance before stepping in. Wait. Look at SCIF for India small-caps For EM, focus on Asian EMs, so go with GMF-N instead of VEE.