What to Consider Before Adding This Emerging Markets ETF to Your Portfolio
Emerging markets stocks have been a great investment over the past 18 months. But there's one country in particular that poses a risk.
What to Consider Before Adding This Emerging Markets ETF to Your Portfolio
Overview
Over the past year, emerging markets have nearly doubled the performance of the S&P 500. The iShares Core MSCI Emerging Markets ETF (NYSEMKT: IEMG) has returned 43% compared to a 24% return for the Vanguard S&P 500 ETF (NYSEMKT: VOO) over the same time.
The combination of attractive valuations, faster economic growth opportunities, and a weaker dollar has produced one of the best stretches for emerging markets stocks relative to the S&P 500 in more than a decade.
Details
But before you consider adding the iShares Core MSCI Emerging Markets ETF to your portfolio, there's one factor you should consider carefully: China.
Source
Originally published at www.fool.com.
