Weak June jobs growth boosts hopes of a dovish Fed, putting healthcare, tech, gold and emerging market ETFs in the spotlight.
The iShares MSCI Emerging Markets ETF (EEM) has surged over 50% but now faces high concentration risk in East Asian semiconductor stocks. I emphasize the iShares India 50 ETF (INDY) as a diversifier, given its inverse correlation to EEM and exposure to India's domestic growth drivers. INDY stands to benefit from easing oil prices, AI adoption in financials, and structural reforms, supporting its premium valuation versus EEM.
If you hold iShares MSCI Emerging Markets ETF (NYSEARCA:EEM), BlackRock skims 0.69% of your account every year before you see a single dividend.
A week ago, iShares MSCI Emerging Markets ETF (NYSEARCA:EEM) was sitting on a ~29% year-to-date gain, having climbed from $55 at the end of 2025 to $71 by June 2.
Emerging markets ETFs surged in May on AI-driven semiconductor gains, easing Middle East tensions and attractive valuations.
Asia's smaller companies have delivered stronger returns than the region's large-cap stocks over the past five years, while also offering lower volatility and broader sector exposure, according to HSBC Asset Management. The firm said Asia small-cap stocks outperformed their large-cap counterparts by nearly 3% annualised at the index level over the period.
The dollar hit a six-week high amid Iran deal uncertainty. ETFs tied to the dollar may gain, while gold and emerging markets could struggle.
EEM has beaten VWO by roughly 10% year-to-date in 2026, and the entire gap traces back to one geographic difference between their underlying indexes. MSCI classifies South Korea as emerging; FTSE classifies it as developed. That single definition gap means VWO holds zero Samsung and zero SK Hynix. Korea is up ~80% YTD on the AI memory shortage. Carrying that exposure inside EEM has dragged its return ahead of VWO all year.
Emerging markets investing has a recurring frustration. You buy the asset class for diversification and growth, then find that a handful of state-owned banks, commodity giants, and speculative tech names dominate the index.
Confluence Wealth Services Inc. lessened its stake in iShares MSCI Emerging Markets ETF (NYSEARCA:EEM) by 10.3% in the undefined quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 99,653 shares of the exchange traded fund's stock after selling 11,503 shares during the quarter. Confluence Wealth
Foreign investors withdrew a staggering $70.3 billion from emerging market assets in March, marking the largest monthly outflow since the market turmoil of March 2020, according to data released by the Institute of International Finance on Wednesday. The data showed that investors pulled funds from both debt and equity portfolios, reflecting a sharp reversal in sentiment.
Allium Financial Advisors LLC lifted its position in iShares MSCI Emerging Markets ETF (NYSEARCA:EEM) by 35.3% in the undefined quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 111,066 shares of the exchange traded fund's stock after purchasing an additional 28,998 shares