INVEST ABROAD TO MAXIMIZE PROFITS
still considered emerging markets from an investment perspective. As you’ll see in the chart to the left, the rest of the countries represented in the EMXC portfolio are more traditional emerging markets, including India, Brazil, South Africa, and Russia. These are all markets that offer tremendous opportunity – but also come with more risks than South Korea or Taiwan. Next, let’s look at EMXC’s individual stock holdings... Its two biggest are Taiwan Semiconductor and Samsung... We mentioned both earlier. Taiwan Semiconductor manufactures more than half of the world’s semiconductors, which are a critical ingredient in everything from electronics to computers to smartphones. Samsung, the second-biggest position, makes a wide variety of electronics for consumers and industrial customers alike – most famously, cellphones. As the table below shows, other individual holdings make up 2% or less of the total fund...
South Korea 21.6% India 14.9% Taiwan 23.1% South Africa 5.9% Russia 4.7% Brazil 7.4% Thailand 2.9% Mexico 2.8% Malaysia 2.3% Other 8% Saudi Arabia 6.4%
Source: iShares Source: iShares
EMXC GEOGRAPHIC EXPOSURE
this fund is easy to buy and sell. This emerging markets fund holds nearly 600 stocks across 13 countries. Its biggest geographic exposures are Taiwan (at 23.1%) and South Korea (21.6%). Taiwan and South Korea are two of the most dynamic economies on Earth... In many ways, these two markets look a lot more like developed markets than emerging ones. For example, in terms of economic output per capita, both South Korea (at just
Stock under $32,000) and Taiwan (at $31,000) are higher than Portugal ($23,000), even though Portugal is considered a developed market. Still, they don’t meet all of index- maker MSCI’s requirements to be classified as developed markets, so they’re Taiwan Semiconductor Samsung Electronics Naspers Reliance Industries Vale do Rio Doce
EMXC TOP HOLDINGS
Country
Sector
Percent Weighting
Taiwan
Information Technology
10%
South Korea Information Technology
6.7%
South Africa Consumer Discretionary
2.0%
India
Energy
1.5%
Brazil
Materials
1.5%
Source: iShares
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June 2021
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