Overview: This popular fund offers cheap, easy access to hundreds of emerging markets stocks.
ETF Alternatives: There are a number of interesting options in the Emerging Markets ETFdb Category; a couple of our favorites include the Guggenheim MSCI Emerging Markets Equal Weight ETF (EWEM), which maintains a much more balanced portfolio, and the GEMS Composite ETF (AGEM), which features a much smaller portfolio but avoids the “quasi-developed” economies of South Korea and Taiwan.
4. MSCI EAFE Index Fund (EFA)
Overview: This ETF offers exposure to developed markets outside the U.S., including Europe, Japan, and Australia.
ETF Alternatives: There are 14 ETFs that offer exposure to the EAFE region; interesting alternatives include the small cap SCZ, equal weighted EWEF, and dividend weighted DWM. Vanguard’s VEA is linked to the exact same index as EFA, but with a much lower expense ratio.
5. MSCI Emerging Markets Index Fund (EEM)
Overview: This ETF is linked to the same index as VWO.
ETF Alternatives: Investors can save about 45 basis points in fees by switching to VWO. Other alternatives for exposure to emerging markets include the dividend-weighted DEM and the small cap EWX.
6. S&P 500 Index Fund (IVV)
Overview: The second most popular S&P 500 ETF, IVV maintains a slightly different structure than SPY that may be more efficient for buy-and-holders.