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The table below shows some closed-end, single-country funds you could add to your portfolio to add exposure to emerging markets.

The notes describe the discount to net asset value at the time I first wrote this guide in early 2003, but in many cases the discounts have narrowed or even moved to premiums. So you should check the discounts in real time as they fluctuate significantly.

A hint about buying closed-end single-country mutual funds: the daily trading volumes of these funds are often small, so always use limit orders when you buy them. And an aside: because of the funds’ small size and relative lack of liquidity, financial institutions that need to deploy huge amounts of assets in each position cannot trade single-country funds. So in this area, you as an individual investor actually have an advantage over many institutional investors.

Examples of Emerging Markets Closed-End Funds Potentially Trading at Discounts to Net Asset Value

Ticker Fund Name Description Notes
(IIF) Morgan Stanley India Investment Fund Closed-end mutual stock fund Annual expense ratio is 1.19%. Fund trades at up to 15-20% discount to NAV. For tax-loss selling, consider switching to (IFN) or (JFI) (closed-end funds).
(JFC) Jardine Flemming China Region Fund Closed-end mutual stock fund Annual expense ratio is 1.13%. Fund trades at up to 15-20% discount to NAV. For tax-loss selling, consider switching to (CHN), (GCH), or (TDF) (closed-end funds).
(KF) Korea Fund Closed-end mutual stock fund Annual expense ratio is 1.15%. Fund trades at up to 15-20% discount to NAV. For tax-loss selling, consider switching to (KEF) (closed-end fund) or (EWY) (index ETF; expense ratio 0.99%).
(LDF) Latin America Discovery Fund Closed-end mutual stock fund Annual expense ratio is 1.23%. Fund trades at up to 15-20% discount to NAV. For tax-loss selling, consider switching to (LAQ) (closed-end fund) or (ILF) (Latin America 40 Index Fund, expense ratio 0.50%).
(MF) Malaysia Fund Closed-end mutual stock fund Annual expense ratio is 1.1%. Fund trades at up to 15-20% discount to NAV. For tax-loss selling, consider switching to (EWM) (index ETF).
(SGF) Singapore Fund Closed-end mutual stock fund Annual expense ratio is 0.9%. Fund trades at up to 15-25% discount to NAV. For tax-loss selling, consider switching to (EWS) (index ETF; expense ratio 0.84%).

Important note: Discounts to net asset value change. To check current discounts and to find the funds with the largest discounts, check The Closed-End Fund Center or ETF Connect.

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Source: ETF Investing Guide: Closed-End Funds to Consider