Investing in Emerging Markets

Many people have been looking at investing in emerging markets (or gold) recently. They are doing so perhaps to diversify their portfolio away from a potential AI bubble, or concerns over high valuations of US stocks.

I'm a firm believer in diversification, so if you are also looking at investing in emerging markets, here are two things to take note of.

Reduction in fees

Vanguard has recently announced a reduction in fees for several of their ETFs.

The changes are nothing to shout about for the most part, but the Vanguard FTSE Emerging Markets UCITS ETF caught my eye as the reduction in fees has made it the cheapest Emerging Markets ETF in the market.

EIMI which tracks the MSCI Emerging Markets Investable Market Index costs 0.18% while SEMA which tracks the MSCI Emerging Markets Index costs 0.18% too. These three products track different indices so you should be mindful of the differences, but they are broadly similar as they offer diversified emerging markets exposure.

Upgrade to Emerging Market Status for Vietnam

You can read all about it here, but as an investor, what that means is that any ETF tracking the FTSE Emerging Markets index will soon include Vietnam stocks. That includes the Vanguard FTSE Emerging Markets UCITS ETF that I mentioned above.

If you have been closely tracking Vietnam's economic growth, this development should excite you. Do take note that this promotion to Emerging Market status will only impact FTSE-tracking ETFs, MSCI has not promoted Vietnam to Emerging Market status.

Conclusion

If you have been planning to invest in emerging markets, or already have emerging markets exposure, do pay attention to these recent developments and make changes to your portfolio as you see fit.

Stay invested. Stay diversified.

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