Emerging markets have been in the news lately and for all the wrong reasons (I’m looking at you, Turkey). Even given this short-term turbulence, emerging markets (EM) equities still hold a place in our strategic iSectors Global Equity Allocation.
Historically, we had split our EM exposure into two buckets: broad EM index funds and EM dividend funds. After extensive research in the 2nd quarter of this year, we determined that a vanilla EM index is not the most optimal way to gain exposure to emerging markets, at least in terms of risk-adjusted returns and correlation to global markets.
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