Opinions
Terry Shaunessy
iShares MSCI Emerging Markets
XEC-T
TOP PICK
Jul 13, 2018
$27.160
Stock price when the opinion was issued
E.T.F.'s
It's the ideal tool to help you make quicker, more informed decisions for
managing and tracking your investments.
You might be interested:
TOP PICK
Some people say that Chinese problems might spill over. He sees it as production chains moving out of China into emerging markets. These economies look good, and multiples in these markets are reasonable. A very broad index. China is 30%, India 10% and a world wide spread. It’s recently had a good run.
E.T.F.'s
PAST TOP PICK
(A Top Pick Jan 24/20, Up 12%) Owns a lot of this. Two-thirds of this are mega-cap Chinese and Korean stocks, including Alibaba, Tencent and Samsung which rank among the biggest in the world by market cap. Yet, they aren't in indexes like EAFE. Eventually he thinks these big names will be migrated into the regular global ETFs. For now, XEC is the way to play them. Growth will come from Asia.
E.T.F.'s
HOLD
Great. A core holding. Low cost, pure beta play. Bullish on EM. They've underperformed for the last 11 years, and they're set for a long period of outperformance. The issue is that it's still 40% tech, and he's moving away from tech. Look at DEM instead, as it overweights EM companies that have higher dividends and a higher quality tilt. DEM is diversified, with a yield of about 4.5%, PE ratio of around 10.
E.T.F.'s
When you’re investing in EM, you’re investing in the future. This is where the growth will be. Dominated by China, technology, and AI as a product, where the Chinese are moving ahead of the US. His firm has 10% of portfolios in this area, they believe in this story so much. Huge potential middle-class populations in the EM like India and China.