Emerging Markets Stock ETF (VWO)
The Emerging Markets Stock ETF or VWO has investments in the emerging large-cap markets. With a majority of the holdings in foreign stocks, the developing markets are fully covered with explosive potential like China.
There are 766 different stocks in this funds holding with the top 10 accounting for 14.67% of the total assets. Of those top 10, 4 are in China which includes China Mobile Ltd, China Construction Bank Corp., Industrial and Commercial Bank of China, and China Life Insurance Co. With China about to obtain the status of the second largest consumer market in the world, having an investment there can be beneficial to your overall portfolio. The assets by markets as a percent of assets is China with 15%, Brazil with 13.8%, South Korea with 11.7%, Taiwan with 10.9%, and India with 7.4%.
Morningstar has rated this fund with 4 stars with an average risk and above average returns. The performance of this fund was 76.29% of the market return for the year 2009.
There is over $33.9 billion of total assets in this fund that has an expense ratio of only 0.27%, which makes this fund one of the cheapest in its sector.
The different sectors this fund has distributed the assets are 24.7% in financial services, 18.9% in industrial materials, 14.8% in energy, 10.6% in telecommunications, and 9.8% in consumer goods.
While no one can predict where these markets are heading, China has reported an 8.7% growth to their economy for the year 2009. This is better than the rest of the world. Investment there might be risky, but along with the risk comes potential profits.
When it comes to mutual funds and their chance for profit, the Emerging Markets Stock ETF has the best chance to shine at the current time.