Trade war to allow for Emerging Market ETFs rebound?
With all the tariffs noise and a stronger US dollar, now might be a good time to buy emerging markets ETFs to benefit from the rebound when Trump’s trade war threats are over.
When you invest in Emerging Markets you invest in countries like China, Japan, Taiwan, Korea and many more where you bet the growth will be in the future.
We’ve selected 5 ETFs stock experts suggest you add to your portfolio…
Goldman Sachs Emerging Market Equity ETF
GEM-N was a top pick on Stockchase more than 1 year and a half ago. It was at its highest back in February and then went down a bit. It’s still up 13% from the latest Top Pick date.
If you missed buying into them earlier, now is a good time given all the tariffs and the strong U.S. dollar. Last year, the MSCI was double the valuation of the U.S. market, and today it is half. You can see a 18% growth rate.
iShares Core MSCI Emerging Markets
XEC-T has already been selected 3 times as a Top Pick on Stockchase this year. Last time was just a few days ago on July 13th, 2018. It was also a Top Pick on June 1st and it was up 5% in mid-July.
This ETF gives you long-term access to the growth potential of emerging markets. With this ETF, iShare states you own over 1500 worldwide stocks. Most of the exposure is to China, Korea and Taiwan.
EM used to be resource-oriented from South America. It’s now an Asia ex-Japan index, dominated by IT and by China, Korea, and Taiwan with names like Tencent and Alibaba. Costs only 25 basis points. EM bore the brunt of Trump’s screaming, but will bounce back when this is over.
FTSE Global All Cap ex Canada
VXC-T is mostly US stocks (54.3%) with a focus on developed and emerging markets excluding Canada.
If you missed the diversification last year by not getting out of Canada, this is a good time to start. If you have a 100% Canadian portfolio, and would like 20% to be in something else, this is a great way to get your toe into the water.
BMO MSCI EAFE
ZEA-T is like the S&P 500 but for stocks outside the US. It has 23.3% Japan exposure.
Your portfolio is going to be made up of fixed income and equities, and he recommends that within the equity portfolio that you have 1/3 of your equity positions invested in international markets. That is a big order, and if you need to start somewhere, this is the one he is using (ZEA). A great entry point into the international market.
Vanguard FTSE Emerging Markets All Cap
An area that he watched for a long time and finally decided to invest in. Growth in these countries is going to be higher than in Canada. 34% China, 14% India.
You know other great emerging market ETFs? Tell us in the comments.