tinscale

Comparing Emerging Market Funds: And the Winner Is...

Thanks for the analysis - I've been looking at VWO vs EEM vs. DEM. I also decided on VWO but haven't jumped in yet.

My Index Based Investments

Both track the MSCI Index but EEM does it with 342 holdings and VWO with 784 holdings. General Question: If all else is equal, given 2 ETFs covering the same sector (energy, utilities, healthcare, etc.), is there any advantage or reason to consider the number of holdings when deciding? I haven't found any discussion of that.


On Mar 11 01:19 PM donzelion wrote:

> There is massive overlap between VWO and EEM, and the correlation
> between them so tight that there's no point in picking both. Last
> I checked, VWO had lower fees, a much broader actual diversification,
> and a higher yield than EEM. However, EEM is older, bigger, and
> more broadly traded.
>
> If you only want one or the other, pick the one with lower fees (try
> etfconnect.com for current fees). For me, I like DEM because I don't
> trust market cap weighted indexes in the emerging markets.