Emerging Markets refer to nations that are growing and becoming more engaged in the global economy. They are a crucial piece in any globally diversified investment portfolio. In this video we’ll look at the best Emerging Markets ETFs to get in on this corner of the market. // TIMESTAMPS: 00:00 - Intro 00:29 - Why Emerging Markets? 01:43 - Emerging Markets vs. Developed Markets 02:21 - VWO 02:47 - IEMG 03:12 - EEM 03:30 - SCHE 03:52 - SPEM 04:07 - My choice 04:25 - Where to buy these ETFs 04:48 - Disclosure 05:13 - Financial Disclaimer 05:44 - Outro // SUMMARY: Emerging Markets are growing countries that are becoming more active in the global economy. As such, they have a lower income per capita than developed markets. The growth of these economies typically coincides with industrialization and an increased standard of living. Notable emerging market economies include Russia, Mexico, China, Egypt, Taiwan, India, and Brazil. Emerging markets comprise about 10% of the global stock market and about 25% of the ex-US stock market. They have outpaced the larger international stock market historically. Arguably more importantly, emerging markets have a lower correlation to the U.S. stock market than international developed markets, offering a superior diversification benefit. Obvious risks include political instability, currency devaluation, infrastructure issues, lack of liquidity, market inefficiency, and absence of free market forces. These risks diminish or disappear as emerging market economies grow. Countries can be upgraded or downgraded from classification as an emerging market at any time, based on factors like income levels, financial systems, and growth. Think of emerging markets as having more room to grow versus developed markets, similar to small cap stocks relative to large cap stocks. Emerging markets have historically outperformed developed markets, albeit with much greater volatility and risk. Thankfully, returns from emerging markets stocks have compensated investors for this increased level of risk, with emerging markets still delivering higher risk-adjusted returns than developed markets historically. More tools have emerged in recent years to efficiently access emerging markets as an investment. ETFs are the most popular way. Let’s look at the best emerging markets ETFs. VWO – Vanguard FTSE Emerging Markets ETF IEMG – iShares Core MSCI Emerging Markets ETF EEM – iShares MSCI Emerging Markets ETF SCHE – Schwab Emerging Markets Equity ETF SPEM – SPDR Portfolio Emerging Markets ETF I personally would probably go with VWO from Vanguard or IEMG from iShares. Remember that VWO excludes South Korea while IEMG includes it. IEMG has slightly outperformed VWO historically and has exhibited lower volatility. Read the blog post here: https://www.optimizedportfolio.com/best-emerging-markets-etfs/ #investing #etfs #vanguard #stocks #stockmarket // INVEST ► M1 Finance: https://optimizedportfolio.com/go/m1 ► My comprehensive review of M1 Finance: https://www.optimizedportfolio.com/m1-finance-review/ ► Get my dividend portfolio: https://www.optimizedportfolio.com/m1-finance-dividend-pie/ ► Lazy Portfolios: https://www.optimizedportfolio.com/lazy-portfolios/ ► Beginners’ reference guide (updated regularly): https://www.optimizedportfolio.com/beginners-start-here/ ► Webull (for stock traders; get 2 free stocks): https://act.webull.com/te/iKJHc5TS9HSe/lfh/inviteUs/ // SOCIAL ► Website: https://www.optimizedportfolio.com/ ► Patreon: https://www.patreon.com/optimizedportfolio ► Facebook: https://www.facebook.com/optimizedportfolio/ ► Instagram: https://www.instagram.com/optimizedportfolio/ ► Twitter: https://twitter.com/OptimizedPort ► Support my channel by shopping on Amazon (free for you): https://amzn.to/2TLCgCc I appreciate all the support! Disclaimer: While I love diving into investing-related data and playing around with backtests, I am not a certified expert. I am not a financial advisor, portfolio manager, or accountant. The information presented is not financial advice, investing advice, or tax advice; it is for informational and recreational purposes only. Investment products discussed are for illustrative purposes only. It is not a recommendation to buy, sell, or transact in any of the products mentioned. I try my best to provide accurate information, but I can’t guarantee 100% accuracy. Do your own due diligence. Read my lengthier disclaimer here: https://www.optimizedportfolio.com/terms/ Disclosure: Some of the links above are referral links. At no additional cost to you, if you choose to make a purchase or sign up for a service after clicking through those links, I may receive a small commission. This allows me to continue producing high-quality content on this channel and pays for the occasional cup of coffee. I have first-hand experience with every product or service I recommend, and I recommend them because I genuinely believe they are useful.