Market Overview

Five Multi-Country ETFs Your Broker Forgot To Mention


In July, Benzinga took a look at five emerging markets ETFs that use the multi-country approach to offer broader exposure to the emerging markets growth theme. The aim was to evaluate compelling options beyond basic fare such as the iShares MSCI Emerging Markets Index Fund (NYSE: EEM) and comparable ETFs.

This time around we're going to look at some more under-the-radar multi-country ETFs with a mix of developed and emerging markets plays.

After the drubbing Europe, Japan and many emerging markets have endured, there are some value plays on this list, but all of these ETFs may offer investors better (lower) prices next week or in two weeks than where they currently trade. In other words, there's no need to rush in right now.

Vanguard Total International Stock ETF (NYSE: VXUS): As we noted last week, the Vanguard Total International Stock ETF is off to a stellar start since its January debut. The ETF has attracted $300 million in assets under management in that time, but doesn't draw a lot of fanfare. Not only does the Vanguard Total International Stock ETF offer the usual low fees (expense ratio of 0.2%) that investors have become accustomed to with Vanguard, the ETF also offers exposure to over 6,600 stocks.

Europe accounts for over 43% of the ETF's regional allocation and that's not good right now, so better prices should be available later for VXUS. Emerging markets and developed Asia-Pacific combine for another 48% of the ETF's weight.

EGShares Emerging Markets High Income/Low Beta ETF (NYSE: HILO): HILO made its debut in early August as beta-reducing high yield play on the less volatile constituents in the MSCI Emerging Markets Index. The expense ratio is a tad high at 0.85%, but this ETF has merit for investors looking for a more conservative approach to emerging markets. No ETF is perfect and we're not going to tell you HILO is. The quibble: Combined 26% to Brazil and China.

WisdomTree Commodity Country Equity Fund (NYSE: CCXE): The WisdomTree Commodity Country Equity Fund is quintessential “maybe later ETF” and the ETF's name tells us why. While energy and materials names account for just a third of the ETF's weight, all of the ETF's country allocations are to commodity-producing countries. Whether its developed markets (New Zealand, Australia, etc.) or emerging markets (Brazil, South Africa and friends), the concept here is novel, but risky at the moment.

Revenue Shares ADR ETF (NYSE: RTR): The Revenue Shares ADR ETF certainly flies under the radar, but it's an interesting multi-country ETF. The ETF is home to almost 170 stocks and a fair expense ratio of 0.49%. RTR holds more developed market ADRs than emerging markets issue, but most of the developed market stocks in this ETF have significant emerging markets exposure. Be advised energy names account for over a third of RTR's sector weight.

Schwab Emerging Markets Equity ETF (NYSE: SCHE): The Schwab Emerging Market Equity ETF is Schwab's answer to EEM and the Vanguard MSCI Emerging Markets ETF (NYSE: VWO). As such, the differences between the three are slight. SCHE's 0.25% expense ratio is better than EEM's, but not as good as VWO's 0.22%. The Schwab offering holds 535 stocks, well below the 910 VWO holds. SCHE does feature many of the same names as its more seasoned rivals and that means heavy Brazil and China exposure (a combined 35%.)

Posted-In: Long Ideas News Sector ETFs Short Ideas Specialty ETFs New ETFs Emerging Market ETFs Commodities


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