SPEM: Cheap China-Heavy EM Fund For The Long Haul

Summary

  • SPEM offers exposure to a diversified basket of EM securities in exchange for just 11 bps, with a dividend yield close to 2%.
  • The Chinese equities have around 35.5% weight in the portfolio, while Hong Kong-listed stocks account for 2.2%. Indian stocks are in second place with a 16% share of the AUM.
  • Large exposure to China has dented its YTD returns.
  • The ETF Grades illustrate that with its small fees and low turnover (factored in the Risk grade), SPEM definitely has an edge over its peers.
  • Investors seeking cheap low-turnover EM strategy for the long haul should pay attention to SPEM.

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