Volatile Fund Paints a Picture of the Asian Market

Doug Fabian

Doug Fabian is known for his expert knowledge of ETFs, bear funds and enhanced index funds to profit in any market climate.

A U.S. incorporated exchange-traded fund (ETF), the iShares MSCI Emerging Markets Asia ETF (EEMA), holds a market-cap-weighted index of Asian emerging markets companies.

Since the fund’s inception in February 2012, it has provided good coverage of the Asian market, with significant allocation of funds in Asia’s major economies such as China, South Korea and Taiwan. The fund also gives exposure to the region’s biggest current sectors: technology and financials.

EEMA favors large-cap rather than small-cap companies, with more than 69% of the fund’s portfolio invested in companies with a market capitalization of $5 billion or more. The fund has an expense ratio of 0.49% and a dividend yield of 1.92%.

EEMA currently has $195.03 million assets under management and is growing, which is a positive sign, especially for the long term. However, as depicted in the graph below, the return for the fund has fluctuated wildly. Year to date, it has notched a return of 14.45%, beating out the S&P 500’s return of 4.98%. One example of the fund’s volatility is its irregular dividend payouts over the years, with an income distribution of $1.38 in 2013, $0.78 in 2014 and $1.23 in 2015.

Financial research firm Morningstar has given EEMA an “Average” rating and mentions that it is an “opportunity buy” for adventurous investors. Currently, Wharton Business Group owns 20% of the fund’s total shares, and the firm continues to purchase further shares as a sign of belief in the fund’s strength.


View the current price, volume, performance and top 10 holdings of EEMA at ETFU.com.

EEMA’s top five holdings are Tencent Holdings Ltd., 5.33%; Taiwan Semiconductor Manufacturing, 5.13%; Samsung Electronics Ltd., 4.81%; Alibaba Group Holding, 3.99%; and China Mobile Ltd., 2.45%. These five holdings combined make up more than 20% of the fund’s investments. EEMA provides investors with targeted access to a specific subset of emerging market stocks, mostly large-cap companies, and it can be used to tailor an investor’s portfolio by expressing a regional view of the emerging markets. If you feel confident about Asia’s continuous growth in the long run, I encourage you to look to iShares MSCI Emerging Markets Asia ETF (EEMA) as a possibility for your portfolio.

Exclusive  The Biggest Game in Town: The Profits Keep on Coming

As always, I am happy to answer any of your questions about ETFs, so do not hesitate to send me an email. You just may see your question answered in a future ETF Talk.

share on:
share on:


Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

  • Forecasts & Strategies
  • Home Run Trader
  • Fast Money Alert
  • Five Star Trader
  • TNT Trader

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.

Product Details

  • Cash Machine
  • Premium Income PRO (exclusively for subscribers of Cash Machine)
  • Quick Income Trader
  • Breakout Options Alert
  • Hi-Tech Trader

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

  • Successful Investing
  • High Velocity Options
  • Intelligence Report
  • Bullseye Stock Trader
  • Eagle Eye Opener

Bob Carlson

Bob Carlson 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

  • Retirement Watch
  • Retirement Watch Spotlight Series
  • Lifetime Retirement Protection Program

Jon Johnson

Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:

Product Details

  • Investment House Daily
  • Stock of the Week
  • Technical Traders Alert
  • Rapid Profits Stock Trader


Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

  • Dividend Investor