Summary
SPEM: Heavy Bet On Emerging Asia Ex. South Korea
SPDR Portfolio Emerging Markets ETF tracks the S&P Emerging BMI Index, emphasizing China, Taiwan, and India, with a 0.07% fee. SPEM offers broad exposure with over 3,000 holdings, a 2.5% dividend yield, and trades at 15x earnings and 2x book value. The ETF is overweight dominant Asian emerging markets by about 10 percentage points versus the MSCI EM Index.
SPEM: Emerging Markets Are Shifting: We Can't Ignore It
A clear logic: high nominal yields but low real rates compress the U.S. risk premium, and push capital toward emerging markets. How will SPDR Portfolio Emerging Markets ETF react? I believe SPEM could benefit from this trend, given its strong exposure to China, India, and Taiwan (72.35%). That's because SPEM is positively correlated with EM currencies, and negatively with the U.S. dollar (DXY).
SPEM: High Risk, Weak Growth, And Less Compelling Opportunities
SPEM's high exposure to China and its economic challenges, along with potential Trump administration tariffs, create significant risks for the fund's performance. Despite a positive 2024, SPEM underperformed the S&P 500, delivering lower returns since inception and exhibiting higher downside risk. The Federal Reserve's likely pause on rate cuts and a stronger U.S. dollar will further pressure SPEM's fund price.
SPDR Portfolio Emerging Markets ETF (SPEM) FAQ
What is the stock price today?
On which exchange is it traded?
What is its stock symbol?
Does it pay dividends? What is the current yield?
What is its market cap?
Has SPDR Portfolio Emerging Markets ETF ever had a stock split?
SPDR Portfolio Emerging Markets ETF Profile
| ARCA Exchange | US Country |
Overview
The provided company description outlines an investment fund that focuses predominantly on emerging markets. It commits at least 80% of its total assets to securities that are part of a specific index, alongside depositary receipts based on the securities within this index. The mentioned index is characterized by a float-adjusted market capitalization weighted approach, which aims to capture and measure the investable universe of publicly traded companies based in emerging market countries. This strategy implies a comprehensive engagement with the emerging markets sector, seeking to leverage the growth potential of these economies.
Products and Services
- Emerging Markets Securities Investments
This service involves the investment in securities and depositary receipts that are part of an index focused on emerging markets. The fund dedicates a substantial portion of its assets to this area, aiming to benefit from the economic growth and investment opportunities available in these regions. The strategy targets a diverse range of sectors and companies domiciled in emerging markets, reflecting the fund's commitment to capturing the dynamic evolution of these economies.
- Float-Adjusted Market Capitalization Weighted Index Tracking
The fund employs a specific strategy to track an index that is float-adjusted and weighted by market capitalization. This approach ensures a focus on companies based on their available market shares for trading, rather than total shares outstanding, providing a more accurate reflection of the market's view of a company's size within the emerging markets. The weight of each company in the index is determined by its market value, adjusted for float, facilitating a methodical investment approach designed to mirror the performance of the index as closely as possible.
Contact Information
