10 Emerging Markets Funds to Consider for Your Portfolio

Emerging Market Funds

Growing your portfolio is essential to achieving your long-term financial goals as an investor. But with so many different investments available, you may not know where to start. If you’re looking for high potential returns, you may want to consider investing in emerging markets funds. According to NextAdvisors, there is a myriad of reasons why you should diversify your portfolio.

The most obvious rationale for investment diversification is managing risks. For instance, your entire portfolio plummets if you only invest in U.S. stocks and the stock market crashes. Market funds are arguably the best way to diversify your portfolio as they provide access to a wide range of investments. Emerging markets can be especially volatile, so it’s important to do your homework before investing. Here are ten emerging market funds to consider for your portfolio:

10. Aubrey Global Emerging Markets Opportunities RC1 GBP

  • Fund Type: Open Ended
  • Fund Size: $214 million

Andrew Dalrymple unveiled the Aubrey Global Emerging Markets Opportunities fund in 2006. And after years of gruelling market conditions, the fund has risen to the top of the performance charts. The fund aims to increase capital by investing in diversified sectors such as the communication industry and consumer staples. Hence, this makes it different from many other funds focusing on exports and natural resources. This fund has shown immense growth in recent years. Its current value is $214 million. With an ongoing commitment to research and a proven track record, the Aubrey Global Emerging Markets Opportunities fund is one to consider for your portfolio.

9. Wasatch Emerging Markets Select Fund Investor Shares

  • Fund Type: Diversified Emerging Markets
  • Fund Size: $353.2 million

The Wasatch Emerging Markets Select Fund Investor was launched in 2012. The fund focuses on small- and mid-cap stocks in Emerging Markets. A team of experienced Emerging Market professionals under the stewardship of Neal Dihora manages this fund. With a minimum of $2000, you can invest in Wasatch Emerging Market Select Fund Investor. One of the reasons why this is an ideal fund for a beginning investor is that the minimum investment is lower than most Emerging Market funds.

8. T. Rowe Price Latin America Fund

  • Fund Type: Latin America stock
  • Fund Size: $354.1 million

T.Rowe Price is a leading investment company. This firm has an excellent reputation and has been in business since 1937. While the company is interested in many business sectors, it significantly focuses on Emerging Markets. The T. Rowe Price Latin America Fund is a good choice for investors looking to invest in Latin American stocks. The fund invests in a diversified portfolio of large- and mid-cap stocks across the region. Its main stocks are from countries such as Mexico, Argentina, and Brazil. These markets excel at their high commodity prices. Verena Wachnitz is the manager of this fund. And with a minimum of $2500, you can start investing in this Emerging Market fund.

7. SPDR Portfolio Emerging Markets ETF

  • Fund Type: Emerging Market Stocks
  • Fund Size: $425.37 million

If you are looking for a low-cost and diversified Emerging Market fund, look no further than the SPDR Portfolio Emerging Markets ETF. This fund provides exposure to a broad range of Emerging Market stocks. It tracks the MSCI Emerging Markets Index, which is a benchmark for many well-to-do Emerging Market stocks. The fund has a low expense ratio of 0.11%. And it is one of the largest Emerging Market funds, with over $425 million in assets. It may even mitigate specific risks associated with Emerging Market stocks in various regions.

6. Fidelity Emerging Markets W-ACC GBP

  • Fund Type: Open Ended
  • Fund Size: $1.81 billion

Fidelity is a well-known and respected investment vehicle across the globe. The company has been operational for many years. And it has built quite a reputation among investors. The Fidelity Emerging Markets W-ACC GBP is an excellent choice for investors interested in Emerging Market stocks. Even though emerging markets can be extremely volatile, this fund has outperformed its benchmark over the long term. The fund’s strategy is to focus on high-quality companies that are undervalued and have the potential to generate strong returns. The fund targets fast-growing areas such as South East Asia, Latin America, and the Middle East.

5. Schwab Emerging Markets Equity ETF (SCHE)

  • Fund Type: Open Ended
  • Fund Size: $8.47 billion

Sometimes the best investments to pursue are the most straightforward ones. Over the years, the Schwab Emerging Markets Equity ETF (SCHE) has been one of the most dependable funds to invest in. It has shown consistency and resilience, even in market turbulence. SCHE invests in a broad range of Emerging Market stocks, giving investors exposure to various companies and industries. The fund has a low expense ratio of 0.14%, making it an affordable option for investors. Its major areas of investment include China, South Korea, and Taiwan. One of its top characteristics is diversification. According to FinancialTimes, its main investment sectors are financial services, technology, communication services, and so on.

4. iShares MSCI Emerging Markets ETF (EEM)

  • Fund Type: Open Ended
  • Fund Size: $25.9 billion

The iShares MSCI Emerging Markets ETF is a special fund that tracks the MSCI Emerging Markets Index. According to Bloomberg, It was officially launched in 2003. It invests in over 800 stocks across 24 Emerging Market countries. One of its best characteristics is sustainability. And its current investments include Taiwan Semiconductor Manufacturers, Samsung Electronics Co Ltd, and Alibaba Group Holding Ltd. So, if you want to put your money in a good fund, you will likely succeed with this ETF.

3. The Oppenheimer Developing Markets Fund Class A Fund (ODMAX)

  • Fund Type: Emerging Market
  • Fund Size: $52.3 billion

Oppenheimer first issued this fund in 1996. It mainly focuses on long-term capital growth by investing in Emerging Market countries. The fund invests in a diversified portfolio of stocks across various markets. These include Russia, India, and Mexico. Over the years, this fund has demonstrated remarkable stability and substantial returns. About 80% of investments are in equity securities. The good news is that you can start investing in this fund with just $100.

2. The American Funds New World Fund Class a Fund (NEWFX)

  • Fund Type: Diversified Emerging Markets
  • Fund Size: $59 billion

American Distributors first issued NEWFX in 1999. The fund aims to provide long-term capital growth by investing in Emerging Market countries. NEWFX invests in a diversified portfolio of stocks and bonds across Emerging Markets. It has invested in the U.S., Brazil, Japan, France, and India. Its main area of investment is information technology at 16.9%. However, they also target healthcare stocks and consumer discretionary.

1. Vanguard Emerging Markets Index Fund Admiral Shares

  • Fund Type: Diversified Emerging Markets
  • Fund Size: $70.7 billion

The Vanguard Group has interests in different types of investment. It ranks among the most successful investment companies in the world. Besides that, they have bought a myriad of shares in some of the leading multinationals. Based on their track record, you should consider investing in their Emerging Markets Index Fund Admiral Shares. This fund is a great choice for long-term investors. It provides exposure to a broad range of Emerging Market stocks. The fund tracks the MSCI Emerging Markets Index, which is a benchmark for Emerging Market stocks. It has a low expense ratio. And it is one of the largest Emerging Market funds, with over $70 billion in assets.

Conclusion

Emerging markets are becoming increasingly important in the global economy. Investing in funds that focus on these markets can help diversify your portfolio and reduce your risk. We’ve provided a list of 10 emerging market funds for you to consider. These funds have a long history of outperforming their peers and offer investors a great opportunity for growth. So, what are you waiting for? Add some emerging market funds to your portfolio today.

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