sam
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Posts: 123
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Post by sam on Jun 21, 2021 19:11:12 GMT
Most emerging market funds follow either MSCI EM index or FTSE emerging all cap china inclusion Index. If you look at top holdings of MSCI EM index, one can find same equities in either any growth funds, international large cap fund and now they are found in EM index as well.
Now, most EM funds have LARGE and GROWTH and TECH bias. Many in Tech are semiconductors (TSM, Broadcom) and other large tech are under scrutiny both in USA and China (BABA, JS, Tencent etc). Semiconductor stock in past (future is unknown) moved in cycles, supply/demand and over capacity. Now many semi are building new foundries in USA. It sound to me over capacity is coming in few years. Chip shortage is due to demand or hoarding?
China, Taiwan and Korea are really EM countries? and happened to be more than 50% of Index.
Q. Why bother owning EM funds when there is so much bias and overlap with other funds like domestic growth or international large cap?
Q. Are there any EM funds with more VALUE and Small Cap tilt?
There are 2 new which I found, DODEX and DFAE. I could not find there portfolio information (3*3 grid), countries or sector allocations or market cap. does anyone here follow these 2 funds and if they are going to be any different?
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Post by javajoe on Jun 21, 2021 21:48:46 GMT
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mrc
Lieutenant
Posts: 104
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Post by mrc on Jul 5, 2021 21:45:39 GMT
There are not many EM mutual funds with value tilt, especially in the smallcap category. Probably, we have to find funds and ETFs separately in these two categories.
EM Largecap Value funds and ETFs:
AEMGX
SSEMX (these top two used to be most recommended EM funds along with PRMSX then I joined M* forums in 2004/05 time period)
PZVEX
SFVLX
PRIJX
Here are some ETFs I found with very low P/E and P/B ratios and wondering why we can't use them as proxy for EM value funds. Looking for others opinion on them.
SDEM
DVYE
DEM All three of these are based on EM dividend indices
AVEM
VMMSX (falls under blend, but a decent fund)
EM Small/Mid cap funds and ETFs: Listing them in sorter order on low P/E and P/B
FEMS
DGS
EWX
EEMS
I think all of the active EM smallcap funds are growth oriented
WESNX
WAEMX
GPEOX
MSMLX
I own the following funds in EM space currently
ARTYX (worst P/E - 50.17 and P/B - 8.79 ratios). Took some profits last week, as it is up 3 times since I bought it one month after inception. Small %age of
overall portfolio, so not much difference to the overall Portfolio performance. Planning invest this money into EM Value space
TREMX with lowest P/E and P/B ratios of all EM funds that I track. Bought it in 03/2020 and It is up by 50%, wondering whether to keep or take profits
MCSMX invested in 12/2019 when China market was depressed during US, China trade war and aftermath. It was hot fund even then, but did not disappoint
me since then
EWZS I replaced PRLAX with this ETF in 04/2021. so far so good
Planning to buy one of those EM value leaning dividend ETFs
70% my portfolio in in steady eddie kind of mutual funds like VDIGX, AKREX, etc. That is my core, this is more of satellite part of my portfolio.
Investing the way I am investing now (with China and Brazil smallcap funds), I would not have imagined myself doing it two years ago. :-)
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sam
Lieutenant
Posts: 123
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Post by sam on Aug 1, 2021 17:01:59 GMT
Thank you mrc for very detailed info. Really helpful. |
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mrc
Lieutenant
Posts: 104
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Post by mrc on Oct 18, 2021 14:48:22 GMT
AVANTIS came up with a EM Value ETF - AVES - AVANTIS® EMERGING MARKETS VALUE ETF - in addition to an International Large Value ETF.
Offerings in latter category is quite common, but this is probably the first time I saw an EM Value ETF, though I understand that RAFI Fundamental Index based funds are all value leaning including EM ETF.
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Post by alvinthechipmunk on Nov 15, 2021 4:44:36 GMT
DODEX Dodge & Cox mentioned above is a great shop, but it's still a brand new fund. And it's not getting a great start "right outa the gate."
I do recognize several stocks in its portfolio which I wish I owned: TSM. CX. ITUB.
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Post by roi2020 on Nov 15, 2021 6:42:03 GMT
DODEX Dodge & Cox mentioned above is a great shop, but it's still a brand new fund. And it's not getting a great start "right outa the gate." I do recognize several stocks in its portfolio which I wish I owned: TSM. CX. ITUB. The Dodge & Cox Emerging Markets Fund (DODEX) relies on a quantitative model unlike the firm's other funds. DODEX has many more holdings than the typical Dodge & Cox offering. Since this fund's strategy is new and untested, I would proceed with caution. |
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Post by alvinthechipmunk on Nov 15, 2021 9:09:05 GMT
Roger, that. My PRIDX is not EM, but it is small and mid-cap QUANT foreign.... I'll be tracking DODEX.  |
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