Tilting Your Emerging Market Exposure

If you wish to invest in emerging markets, you can invest in an index fund such as iShares (EEM) or Vanguard (VWO). That locks you into a particular set of country exposures that may or may not express your views on opportunities and risks. You can also invest in various regional funds or single country funds.

Another alternative is to build the core of your emerging market position with an index fund and then tilt the exposure by adding additional shares of regional or single country funds to create an exposure biased toward the opportunities you see.

The table below shows the country weights of EEM and next to each country shows single country funds that are available for that country to help you tilt the way that matches your return and volatility predictions and exposure preferences.

Disclosure: At the time of this writing, author owns EEM.