With about $43 billion in assets, iShares MSCI Emerging Markets is larger than Vanguard Emerging Markets ETF, which holds roughly $34 billion. However, the Vanguard ETF boasts much lower fees. Its expense ratio is 0.27%, compared with 0.72% for the iShares ETF.
For contrarian investors, the flood of cash moving into emerging markets ETFs is a warning sign. Investors have been burned in the past with ill-timed bets on the sector, which is prone to violent swings.
The top three country allocations in iShares MSCI Emerging Markets and Vanguard Emerging Markets ETF are China, Brazil and South Korea. There are many ETFs for emerging markets that investors can choose from.
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