4 Top-Ranked Diversified Emerging Markets Mutual Funds
Diversified emerging markets mutual funds may prove to be an ideal option for investors seeking high returns. These mutual funds are expected to allocate their resources in acquiring securities comprising common stocks and debt securities of issuers that are domiciled in emerging economies including China, Taiwan, Brazil, Russia and India. Mutual funds are often considered to be a better option than holding individual stocks in this case as emerging markets securities are believed to have high level of risk and volatility.
Below we share with you four best-rated diversified emerging markets mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future.
DFA Emerging Markets Value R2 DFEPX is a Feeder Portfolio that invests all its assets in the corresponding master fund (Dimensional Emerging Markets Value Fund). DFEPX seeks appreciation of capital for the long run. DFEPX invests heavily in emerging market securities that are considered to be Approved Markets securities. DFA Emerging Markets Value R2 returned 42.8% over the past one year.
Jed S. Fogdall has been one of the fund managers of DFEPX since 2010.
Vanguard Emerging Markets Stock Index Investor VEIEX seeks return by investing its assets in common stocks of companies based in the emerging markets. VEIEX normally adopts an investment approach that tracks the overall performance of the benchmark index, FTSE Emerging Markets All Cap China A Inclusion Index. This index includes around 3,500 companies with different market-caps and from different emerging market nations. Vanguard Emerging Markets Stock Index Investor returned 32.4% over the past one year.
VEIEX has an expense ratio of 0.33% compared with the category average of 1.49%.
Consulting Group Emerging Markets Equity TEMUX invests the large chunk of its assets in securities of companies that are located in or that derive major parts of their revenues by running operations in emerging economies. TEMUX primarily invests in securities of companies domiciled in nations listed in the MSCI Emerging Markets Index. Consulting Group Emerging Markets Equity returned 31.5% over the past one year.
As of September 2016, TEMUX held 929 issues, with 3.91% of its assets invested in Taiwan Semiconductor Manufacturing.
Ivy Emerging Markets Equity I IPOIX seeks capital appreciation. IPOIX invests the lion’s share of its assets in common stocks of companies either from emerging markets or economically tied to these countries. IPOIX may invest all of its assets in non-US companies. IPOIX may invest a maximum of one-fifth of its assets in companies that are not from emerging nations. Ivy Emerging Markets Equity I returned 34.5% over the past one year.
Jonas Krumplys has been the fund manager of IPOIX since 2014.
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