These days, emerging markets exchange traded funds have a litany of problems, chief among them direct or indirect China exposure and commodities exposure.
For investors, dodging both of those issues can be difficult because even many of the well-known, supposedly diversified emerging markets ETFs feature outsized weights to Chinese stocks. When Chinese stocks are tumbling, it really does not matter if Emerging Markets ETF A has a 27 percent weight to China and Emerging Markets ETF B has a 23 percent China weight. All ETF B is going to be is less bad than ETF A.
“While it is very difficult to ever know ahead of time when equity markets will rebound, we’re seeing more and more careful analysis of emerging markets equity exposures,” said WisdomTree p>
/www.benzinga.com/trading-ideas/long-ideas/15/08/5793532/how-to-reduce-exposure-to-problem-areas-in-emerging-markets-e alt=How To Reduce Exposure To Problem Areas In Emerging Markets ETFs>Full story available on Benzinga.com
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