"Retirees seeking geographic diversification face a fundamental tension: emerging markets promise growth but deliver volatility. The iShares MSCI Emerging Markets Asia ETF (NYSEARCA:EEMA) exemplifies this challenge, offering concentrated exposure to Asia's developing economies amid political uncertainty and currency swings. What EEMA Delivers: Growth Potential With Geographic Concentration EEMA provides targeted access to emerging Asian markets through a portfolio dominated by technology and financial services."
"With $1.5 billion in assets and a 0.49% expense ratio, the fund concentrates holdings in China, South Korea, India, and Taiwan. Top positions include Tencent Holdings ( OTC:TCEHY) (6.04%), Samsung Electronics ( OTC:SSNLF) (4.51%), and SK Hynix ( OTC:HXSCL) (3%). The fund's return engine depends on capital appreciation from companies in rapidly developing economies and modest dividend income. The current 1.17% yield comes from semi-annual distributions ranging from $1.13 to $1.80 per share over five years, highlighting income instability."
Retirees seeking geographic diversification face a tradeoff between emerging-market growth and pronounced volatility. EEMA delivers concentrated exposure to Asian emerging economies, holding $1.5 billion with a 0.49% expense ratio and major positions in China, South Korea, India, and Taiwan including Tencent, Samsung, and SK Hynix. Returns rely on capital appreciation from fast-growing companies and modest dividends; the current yield is 1.17% with semiannual distributions that have ranged from $1.13 to $1.80 per share over five years. EEMA rose 38.6% in 2025 but produced only 26.7% total returns over five years versus an 84.8% S&P 500 gain. Elevated geopolitical tensions and U.S.-China trade frictions pose ongoing risks.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]