With all the media attention directed at emerging markets,
investors have been investigating options for investing in emerging
markets funds. Although specialized hedge funds exist, these are geared
towards higher net worth individuals. These funds can also attract
processing fees for entry and exit. Mutual funds can also be higher
cost investment vehicle that are subject to sign up and redemption
fees.
With the advent of exchange traded funds, investors now have a
lower cost way of participating in emerging market funds. These
funds are traded on the exchange in much the same way as stocks.
You can purchase a position to go long, short, margin lend and use
as part of a hedging strategy. The costs are the same as for buying
and selling stocks. Data is readily available through most data
vendors and quotations and research can be sourced over the internet.
With the economic woes currently confronting the US, investors
have been looking more and more to invest offshore. With India,
China, Russia and Brazil enjoying fast growth rates, many emerging
markets stock index funds have been listing on the exchange with
mandates that include holdings of stocks in these fast growing regions.
The following represents some avenues for investors who are looking
to invest in emerging market funds.
Acadian Emerging Market Fund (AEMGX)
This fund invests in common stocks in emerging markets.
Top 10 Holdings:
China Mobile Ltd: 5.96%
Neftyanaya kompaniya LUKOIL OAO Depository Receipt: 5.58%
PetroChina Co Ltd: 5.47%
Posco: 4.98%
Banco Bradesco SA Preferred Stock:3.99%
Dongbu Insurance Co Ltd : 2.99%
High Tech Computer Corp: 2.86%
Polski Koncern Naftowy Orlen SA: 2.67%
Petroleo Brasileiro S.A. Petrobras Preferred Stock: 2.46%
Korea Electric Power Corp : 2.37%
Oppenheimer Developing Markets Fund :A
This emerging markets equity fund invests at least 65% of its assets
in three emerging markets.
Top 10 Holdings:
Petroleo Brasileiro S.A. Petrobras Depository Receipts: 3.88%
Samsung Electronics Co Ltd: 2.88%
Hon Hai Precision Industry Co Ltd: 2.08%
Infosys Technologies Ltd: 2.01%
Housing Development Finance Corp Ltd: 1.94%
All America Latina Logistica SA: 1.93%
America Movil SAB de CV Depository Receipts: 1.63%
MediaTek Inc: 1.60%
Larsen & Toubro Ltd : 1.52%
Gazprom OAO Depository Receipts :1.48%
Claymore ETF:BNY BRIC
This emerging markets exchange traded fund invests in the performance
of an equity index called the Bank of New York BRIC Select ADR index.
The constituents of this exchange include ADR's and GDR's from Brazil.
Russia, India and China that are currently traded in the US markets.