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iShares MSCI Emerging Markets ETF (EEM)

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  • Aug. 21, 2014, 10:52 AM
    • Norway's $880B sovereign wealth fund has been boosting investments in emerging markets since the government in 2012 approved a plan to cut holdings in Europe to 41% from 54% of the portfolio. "We are gradually picking up some new markets, but at a less rapid pace than we did at the beginning of the year," says Yngve Slyngstad, the fund's CEO.
    • China, however, remains a key target, says Slyngstad, noting the fund's investment relative to the size of that country's economy is "miniscule."
    • The fund - which owns 1.3% of the world's stocks - has missed its 4% real return target since its inception in the late 90s. It reported a 3.3% return in Q2, in part because of a strong rally in emerging markets.
    • ETFs: EEM, VWO, EDC, EDZ, SCHE, IEMG, EEV, ADRE, EET, EUM, GMM, EEME, DBEM, EMCR, FEM, EWEM, EMLB, EMSA, EMFT, EMDR
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  • Jul. 24, 2014, 1:26 PM
    • It's been a nice run for emerging markets since mid-March with iShares' EEM ahead 18.7%, about 1000 basis points better than the S&P 500. Vanguard's (NYSEARCA:VWO) did even better, returning 20.9%.
    • Looking at individual markets, WisdomTree's India Earnings Fund (NYSEARCA:EPIrose 30.1%, iShares' Turkey ETF (NYSEARCA:TUR44.2%, and iShares' Brazil Capped ETF (NYSEARCA:EWZ33.2%.
    • The trouble, according to UBS, is these markets have been rallying as analysts at the bank have been cutting earnings forecasts, now seeing 12.5% earnings growth, down from 15.3% estimated in April. Consensus forecasts during the same time frame have fallen to 9.6% from 14.7%. "We believe EM equities need a rebound in earnings momentum in time to justify a further strong upside breakout."
    • On the good side, the team is increasingly assured that corporate margins bottomed in 2012; they rose 10-40 bps last year and should pop another 30-40 bps this year.
    • ETFs: EEM, VWO, EDC, EDZ, SCHE, IEMG, EEV, ADRE, EUM, EET, GMM, EEME, DBEM, EMCR, FEM, EWEM, EMLB, EMSA, EMDR, EMFT
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  • Jul. 7, 2014, 12:06 PM
    • Three in particular - IXUS, IEMG, IEFA - have fees far undercutting existing, popular, and nearly identical iShares offerings (ACWX, EEM, EFA), but funds have been slow to shift to the cheaper ETFs, allowing BlackRock (BLK -0.6%) to earn hundreds of millions more in fees. This as the Core products - mostly thanks to lower fees - outperform their more expensive cousins.
    • ETF.com's Dave Nadig notes ETF money is "enormously sticky," and BlackRock no doubt counted on that fact. "It can take years and years for investors to realize there’s a better option sitting right in front of them."
    • Over time, new money will go into the Core line as better performance will win out, says Nadig, but until there's a serious change in volume and spreads, traders will stick with the older products.
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  • Jul. 1, 2014, 12:38 PM
    • BlackRock's (BLK +1.4%) iShares lineup took in an estimated $21.4B in net deposits in Q2, beating Vanguard's $18.2B, according to Bloomberg. IShares funds focusing on emerging markets brought home $8B, including $5.9B for the MSCI Emerging Markets ETF (EEM).
    • Before Q2, BlackRock - the ETF industry's largest ETF provider - had lost share to Vanguard for four of the previous five quarters.
    • State Street (STT +0.9%) had seen net redemptions in Q1, but was able to bring in $8.3B in Q2. The company is especially sensitive to flows in and out of the giant SPDR S&P 500 ETF Trust (SPY), which accounts for 40% of its U.S. ETF assets.
    • Invesco's PowerShares QQQ Trust (QQQ) saw heavy redemptions of $2.9B even as it returned 7.2%.
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  • Jun. 27, 2014, 11:21 AM
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  • Jun. 25, 2014, 12:48 PM
    • The iShares MSCI South Korea ETF (EWY -0.4%) is off 0.5% YTD vs. the EEM 4% gain - this despite a 3.3% rise in the won which should boost the dollar-denominated ETF.
    • Looking for a story behind the price action, Credit Suisse comes up with a few ideas, the first one being the slowdown in Korea's largest export market China.
    • Other reasons include downward Q1 earnings revisions of 19%, a record low except for during the financial crisis, and the dampening consumer effect of the sinking of the MV Sewol.
    • Finally, there's sluggish action in Samsung (22.6% of EWY's holdings) after an earnings miss and concern over the company's restructuring plan.
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  • Jun. 25, 2014, 10:25 AM
    • iShares MSCI Emerging Markets ETF (EEM) announces semi-annual distribution of $0.3406.
    • 30-Day SEC yield of 1.98% (as on 05/31/2014).
    • Payable July 2; for shareholders of record June 27; ex-Div. June 25.
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  • May 16, 2014, 4:14 PM
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  • May 9, 2014, 11:07 AM
    • New Jersey's $76.8B pension fund cut its holdings of emerging market ETFs to less than $1.8B as of March 31, according to filings compiled by Bloomberg. As recently as 2009, EM holdings were about zero, but rose to over $3B by the end of 2012.
    • New Jersey's souring on a poor trade could be happening just as emerging markets are showing signs of rebounding following their worst relative performance last year in more than a decade. The MSCI emerging markets index (ETF: EEM) is up 10% since February 5, as is Vanguard's FTSE Emerging Markets ETF (VWO) - one of the funds cut back on by NJ.
    • New Jersey has company: In the last five quarters through March, investors have pulled $12B from Vanguard's $44B VWO and $12.8B from BlackRock's $36B EEM. The funds, however, have seen inflows of $4.6B since the end of March.
    • ETFs: EEM, VWO, DEM, EDC, DGS, EDZ, EEMV, SCHE, EEB, EDIV, IEMG, DVYE, EEV, EWX, BIK, BKF, PIE, ADRE, HILO, EUM, FNI, EET, GMM, EEMS, BBRC, PXH, EELV, DGRE, FEMS, EEME, EMDD, EDOG, BICK, DBEM, EMCR, FEM, EMBB, FNDE, EWEM, EVAL, EMLB, TLTE, EEHB, EMHD, EMDG, QDEM, EGRW, EMSA, EMDR, QEM, EMFT
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  • Apr. 25, 2014, 4:23 PM
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  • Apr. 11, 2014, 10:34 AM
    • Bull markets don't end with such high cash levels and low leverage, says BAML chief investment strategist Michael Hartnett. What we're seeing now is a "hard reversal" period, with "extreme positions" being quickly eliminated. To wit, the Nikkei's worst 5-day stretch this week since the earthquake/tsunami of 2011, while money flows into previously-hated emerging markets (EEM -0.3%). EM equities, says Hartnett, have outperformed the Nikkei by nearly 1K basis points since mid-March.
    • He expects to hear policy doves again make themselves heard as markets slip. “The biggest risk is that markets lose trust in vacillating Fed, the only policy maker the market truly trusts."
    • The real correction, says Hartnett, comes this fall, as the Fed wraps up QE and the idea of rate hikes really begins to come into focus.
    • ETFs: PRF, VV, SCHX, NY, FEX, JKD, EQL, EEH, SPXH, TRSK, ERW, PXLC, FWDD, ALTL, SYE
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  • Apr. 7, 2014, 3:27 PM
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  • Apr. 4, 2014, 12:50 PM
    • With the Nasdaq and Russell 2000 each off 2% and the S&P 500 down 0.6%, what's working today? Emerging markets (EEM +0.7%), particularly Latin America (ILF +2.2%), particularly Brazil, where the weight of a year-long rate hike cycle looks to be coming to a close just as monetary tightening gets underway in the States.
    • Up 2.6% today, the iShares MSCI Brazil Index (EWZ) is ahead more than 20% since the start of February.
    • Brazil's banks: Banco Bradesco (BBD +2.8%), Banco Santander Brasil (BSBR +2.9%), Itau Unibanco (ITUB +2%).
    • Brazil ETFs: EWZ, BRF, BRXX, EWZS, BRAQ, BRAZ, BZQ, BRZU, BRAF, UBR, BRZS, DBBR, FBZ
    • LatAm ETFs: AND, ILF, LBJ, GML, LATM, EEML, FLN
    | 8 Comments
  • Mar. 20, 2014, 8:30 AM
    • A check of Asian emerging markets overnight following the FOMC and Yellen suggesting the first hike in rates in maybe one year finds them lower, but not out of line with the rest of the global selloff.
    • Indonesia -2.5%, Thailand -0.2%, Philippines -0.7%, India -0.4%.
    • ETFs: EPI, THD, EPHE, IDX, INDY, EIDO, SCIF, PIN, INP, INDL, INDA, INXX, IDXJ, SCIN, SMIN
    • The EEM is off 0.7% premarket after yesterday's 2.1% decline.
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  • Mar. 18, 2014, 12:28 PM
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  • Feb. 28, 2014, 10:02 AM
    • Falling from 18 basis points to 15, the annual expense ratio of Vanguard's FTSE Emerging Markets ETF (VWO +0.2%) now matches the cheapest-in-class, Schwab's Emerging Markets Equity ETF (SCHE +0.3%). BlackRock's recent entry as an ultra-cheap emerging markets fund, the iShares Core MSCI Emerging Markets ETF (IEMG +0.2%), for the moment continues with an expense ratio of 18 bps.
    • Broad emerging market ETFs: EEM, VWO, EDC, EDZ, SCHE, IEMG, EEV, PIE, ADRE, EUM, EET, GMM, EEME, EMCR, DBEM, FEM, EWEM, EMLB, EMSA, EMFT, QEM, EMDR
    • Other lower expense ratios from Vanguard: The FTSE All-World ex-U.S. Small Cap ETF (VSS +0.7%) down 20% to 20 bps, Global ex-U.S. Real Estate ETF (VNQI +0.3%) down 15.6% to 27 bps. Total International Stock ETF (VXUS +0.5%) down 12.5% to 14 bps, Total World Stock ETF (VT +0.5%) down 5.3% to 18 bps.
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EEM Description
The iShares MSCI Emerging Markets Index Fund seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in emerging markets, as represented by the MSCI Emerging Markets Index.
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