MSCI Emerging Markets ETF To Increase Brazil, China Exposure (EEM)
The iShares MSCI Emerging Markets Index (NYSE: EEM), the largest emerging markets ETF by market value, will add 11 Brazilian stocks and seven Chinese stocks to its holdings by the end of this month, increasing its exposure to two of the best-performing emerging markets.
Currently, the two countries account for just 25% of EEM's holdings, though there are several Brazilian names and one Chinese stock among the top 10 holdings.
Brazil has soared the most on the MSCI so far in 2009, gaining 121% in dollar terms (as of Thursday), while China is up 62% year-to-date, according to press reports.
The new additions were not identified. The ETF Professor views this as a good move becaue the iShares MSCI Brazil Index (NYSE: EWZ) is up twice as much as EEM year-to-date (120% vs. 60%.)
