Fed turns dovish and trade tensions ease. Amid this scenario, tech & growth ETFs could soar along with some other areas.
Last week FTSE made its annual review of country classification within its global equity indices (see the announcement here). One of the most interesting changes was Vietnam's upgrade from frontier to emerging market.
Emerging markets are surging on a weak dollar, Fed cuts & AI-fueled Chinese tech rally. ETFs like EEM & CQQQ are outpacing the S&P 500 in 2025.
| XMEX Exchange | US Country |
The company operates as an investment fund, focusing primarily on investing in securities of companies located in emerging markets worldwide. It commits at least 80% of its assets towards purchasing the component securities that form the basis of its underlying index, as well as investments that exhibit economic characteristics nearly identical to these securities. This strategic approach ensures the fund is closely aligned with the performance of its underlying index, which is meticulously constructed to represent the equity market's performance across various emerging market economies. The index encompasses a broad range of large- and mid-capitalization companies, reflecting a diversified portfolio that is adaptable to the evolving landscape of global emerging markets.
Specializing in equity investments within the global emerging markets, the fund targets the stocks of large- and mid-sized companies that are deemed to have significant growth potential. By investing in these companies, the fund seeks to benefit from the dynamic economic growth observed in emerging economies around the world. This product is designed to offer investors exposure to the potential high returns associated with emerging markets, while also diversifying their investment portfolios.
The fund employs an index-based investment strategy, closely tracking the performance of its underlying index that reflects the equity market performance in the global emerging markets. This approach allows for a transparent and systematic investment process, with the objective of mirroring the index's performance as closely as possible. It is an ideal strategy for investors looking for a passive investment approach that capitalizes on the growth trajectories of emerging markets globally.