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Emerging Market ETFs. Are They Right For You?



30 Emerging Markets ETFs: Risk vs. Reward by Hao Jin, CFA

Returns from emerging markets stocks are highly correlated to those from U.S. stocks. Also, many people believed that those countries’ growth prospects were hardly a secret, and they had been more than priced into stocks. Still, from price/earnings to growth (PEG) ratio point of view (a ratio used to determine a stock's value while taking into account earnings growth, according to Investopedia), emerging countries’ PEG is still better than SPY’s.

From a total of 835 ETFs, I filtered out those ETFs with net assets less than $100 million and average volume less than 100,000. Below are 30 emerging market ETFs, along with their PEG and Price to Cash Flow (CF) ratio.

#

Fund Name

Ticker

PEG

Price/CF

1

iShares MSCI Emerging Markets Index

EEM

0.9

6.5

2

Vanguard Emerging Markets Stock ETF

VWO

0.7

4.5



3

iShares MSCI Pacific ex-Japan

EPP

1.4

5.4

4

iShares S&P Latin America 40 Index

ILF

1.1

9.4

5

iShares MSCI All Country Asia ex Jpn

AAXJ

0.9

4.8

6

SPDR S&P Emerging Asia Pacific

GMF

1.0

4.7

7

Claymore/BNY Mellon BRIC ETF

EEB

0.5

4.5

8

iShares MSCI BRIC Index

BKF

1.0

6.0

9

SPDR S&P BRIC 40

BIK

1.0

5.8



10

iShares MSCI Brazil Index

EWZ

1.0

4.8

11

iShares MSCI Chile Investable Mkt Idx

ECH

1.4

4.6

12

iShares FTSE/Xinhua China 25 Index

FXI

1.0

6.3

13

PowerShares Gldn Dragon China

PGJ

0.6

5.6

14

SPDR S&P China

GXC

0.9

5.9

15

iShares MSCI Hong Kong Index

EWH

0.8

6.3

16

iPath MSCI India Index ETN

INP

1.0

6.5

17

WisdomTree India Earnings

EPI

0.7

6.2

18

PowerShares India

PIN

1.0

7.2

19

iShares MSCI Malaysia Index

EWM

1.4

8.4

20

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