ETF Talk: Eyeing GEMS for Your Portfolio

When I look for an investment opportunity, I am particularly interested in recovering markets. That’s why I was intrigued when Fed Chairman Ben Bernanke’s announcement on quantitative easing spurred a sell-off in global and emerging markets earlier this month.

As a result, I have found an exchange-traded fund (ETF) that taps into a diverse group of emerging markets, the EGShares Technology GEMS ETF (QGEM). This fund invests nearly 90% of its resources in emerging markets in Asia, Africa and South America. Chinese holdings lead the way at 49.15%, followed by Indian holdings at 29.01%. QGEM also invests 3.48% in Thailand, 2.88% in Chile, 2.64% in Indonesia, 2.28% in South Africa and 1.50% in Turkey.

The emerging market index, which includes stocks from all of these countries, looks ripe for a recovery due to its abnormally low P/E ratio. QGEM, on the other hand, already is nicely situated at a 16-to-1 P/E ratio, but this ETF has holdings in key countries that will benefit from such a rebound. QGEM should be well ahead of the emerging market surge.

As indicated by the chart below, QGEM has risen 26% during the last year through a wide variety of conditions. The fund also offers a 1.97% dividend yield.


International stocks form 96.9% of QGEM’s portfolio. The top 10 holdings, nine in developing economies and one in Russia, comprise 57.08% of the total assets of the fund. The largest is Tencent Holdings, with 10.41% of the fund’s assets, followed by Baidu Inc., 7.95%; INFOSYS LTD, 7.83%; TCS LTD, 6.48%; NetEase Inc, 4.62%; Lenovo Group Ltd., 4.55%; Sina Corporation, 4.24%; Wipro Ltd. GDR, 3.79%; Group Ltd GDR, 3.75%; and Shin Corporation Public Co. Ltd, 3.48%.

Exclusive  This Fund is an Alternative Way to Invest in Emerging Markets

As indicated by the name of the ETF, these holdings primarily focus on one sector: technology. Indeed, 86.05% of QGEM’s portfolio is invested in that sector, followed by 10.35% in communication services and 3.6% in industrials. Considering that this concentration is spread across China, India, Thailand, Hong Kong, Russia, Chile, the United States, Turkey, Indonesia, South Africa and Poland, QGEM is an incredibly diverse investment. I encourage you to look into QGEM so you can profit as the emerging markets recover.

If you want my advice about buying and selling specific ETFs, including appropriate stop losses, please consider subscribing to my Successful Investing newsletter. As always, I am happy to answer any of your questions about ETFs, so do not hesitate to email me by clicking here. You just may see your question answered in a future ETF Talk.

Like This Article?
Now Get Doug's FREE Special Report:
The New Gold Rush of 2016-2017

With gold already up 20% in 2016, one of the best market timers in the business sees even bigger things ahead. His free special report will show you how to play the coming “gold rush” for serious profits.

Get Access to the Report, 100% FREE

previous article

The markets have made a decided move to the upside since late June, but during the past couple of days we’ve seen a bit of a summer stall. Trading volumes have been relatively light, and the markets now are keying on the bevy of earnings reports that have come in. So far, we’ve seen some high-profile earnings winners, notably Apple (AAPL), Boeing (BA), General Electric (GE


Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen publishes 4 different investment newsletter advisories, including the award-winning Forecasts & Strategies, which has beaten the market over the last 15 years.

Product Details

  • Forecasts & Strategies
  • Skousen High Income Alert
  • Fast Money Alert
  • Five Star Trader
About Mark Skousen

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays. Bryan's four newsletter and trading services include:

Product Details

  • Cash Machine
  • Premium Income (exclusively for subscribers of Cash Machine)
  • Quick Income Trader
  • Instant Income Trader
About Bryan Perry

Nicholas Vardy

A Stanford and Harvard Law graduate, Nicholas Vardy scours over 40 different global markets every day to uncover new profit opportunities for subscribers. His 3 advisories and trading services include:

Product Details

  • The Alpha Investor Letter
  • Bull Market Alert
  • Alpha Algorithm
About Nicholas Vardy

Doug Fabian

A 30-year Wall Street veteran and famed market timer, Doug Fabian is one the nation's foremost experts on ETFs (Exchange Traded Funds). His two ETF-focused advisories include:

Product Details

  • Successful ETF Investing
  • ETF Trader's Edge
About Doug Fabian

Bob Carlson

In Bob's monthly newsletter, Retirement Watch, he provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details


Used by financial advisors and individual investors all over the world, is the premier provider and one-stop shop for dividend information and research. Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

Product Details