IEMG has delivered a much stronger one-year total return and offers a higher dividend yield than SPGM. SPGM remains more diversified across developed and emerging markets, while IEMG focuses only on emerging economies.
IEMG has delivered a higher 1-year total return but comes with a deeper 5-year drawdown versus IXUS. IXUS covers a broader international universe, while IEMG focuses exclusively on emerging markets with heavier tech exposure.
IEMG has significantly outperformed the major broad U.S. indexes over the past year, validating its role as a key U.S. dollar debasement trade. The ETF's 17.7% allocation to leading AI-driven semiconductor firms - TSMC, Samsung, and SK Hynix - has been a key performance driver. A weakening U.S. dollar and ongoing global macro trade shifts underscore the need for Americans to have adequate international equity exposure as portfolio insurance.
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The described company operates in the financial sector, focusing on investment in emerging markets. It aims to track the performance of an underlying index that covers a broad spectrum of equity market capitalizations, including large-, mid-, and small-cap companies located in global emerging markets. The commitment to invest at least 80% of its assets in the securities that make up the index, or in investments closely mirroring those securities, showcases the company's strategy to replicate the index's performance as closely as possible. This approach allows investors to diversify their portfolios by gaining exposure to emerging markets through a single investment vehicle.
This product offers investors the opportunity to invest in a fund that closely tracks the performance of a specific index. By focusing on the securities that comprise the underlying index linked to global emerging markets, the company provides a straightforward avenue for investors to gain diversified exposure to a multitude of companies in developing economies. This product is ideally suited for investors looking to benefit from the potential growth of emerging markets while spreading their investment risk across a wide range of equities.
In addition to direct investment in the component securities of the underlying index, the company also seeks out investments that have economic characteristics substantially identical to those securities. This strategy might involve investing in derivative instruments or in other financial products that replicate the economic effect of investing directly in the index's securities. Such products are designed for investors who wish to achieve the same end as direct index investment, potentially with added flexibility or different risk characteristics.