{"id":1204,"date":"2021-07-13T06:35:15","date_gmt":"2021-07-13T06:35:15","guid":{"rendered":"https:\/\/investwithanedge.com\/?page_id=1204"},"modified":"2021-07-13T06:35:15","modified_gmt":"2021-07-13T06:35:15","slug":"ishares-joins-emerging-markets-small-cap-etf-party","status":"publish","type":"page","link":"https:\/\/investwithanedge.com\/ishares-joins-emerging-markets-small-cap-etf-party\/","title":{"rendered":"iShares Joins Emerging Markets Small Cap ETF Party"},"content":{"rendered":"

BlackRock\u2019s new iShares MSCI Emerging Markets Small Cap Index Fund (EEMS)<\/strong>, introduced on August 19, has already gathered assets of more than $66 million. As its name describes, the new ETF targets small cap stocks from emerging markets. \u201cSmall cap\u201d is defined as the companies representing the bottom 14% of market capitalization.<\/p>\n

The underlying index has a total of 1,987 holdings from the 21 MSCI-designated emerging market countries. EEMS employs a representative sampling technique that currently includes only 633 holdings. Country allocations tilt heavily toward Asia with Taiwan at 19.9%, South Korea 17.4%, China 16.4%, India 9.7%, South Africa 8.3%, Brazil 5.9%, Malaysia 4.2%, Indonesia 3.8%, Thailand 3.3%, Turkey 2.4%, and others 8.7%.<\/p>\n

The sector breakdown is Consumer Discretionary 17.1%, Industrials 16.9%, Financials 16.6%, Technology 15.1%, Materials 14.9%, Consumer Staples 8.7%, Health Care 4.9%, Utilities 2.9%, Energy 2.1%, and Telecommunications 0.8%.<\/p>\n

Two established ETFs have lower expense ratios than the 0.69% of EEMS. WisdomTree Emerging Markets SmallCap Dividend (DGS) (overview) was launched in October 2007 and has a 0.63% expense ratio. SPDR S&P Emerging Markets Small Cap (EWX) (overview) was introduced in May 2008 with a 0.65% expense ratio.<\/p>\n

Investors desiring more precise exposure can choose from eight single-country emerging market small cap ETFs:<\/p>\n