The Vanguard FTSE Emerging Markets fund tracks a market-cap-weighted index of emerging-market stocks, excluding South Korea.
VWO FactSet Analytics Insight
VWO is an extremely large and liquid fund with a very low fee. In 2013 it switched to a FTSE index which does not count South Korea as an emerging market, putting it in direct competition with Schwab s SCHE rather than iShares EEM. In November 2015 the fund initiated another change, this time to include both small-cap stocks and China A-shares. It eased into this change with a dynamic transitional index, completing the transition in September 2016. Since VWO has no exposure to South Korea, it has more space for China, Brazil, India and the rest of the emerging nations compared with our MSCI benchmark.
Including stocks from the Chinese mainland and going deeper into the market-cap spectrum made the fund even more representative of the EM space, but also reduced underlying liquidity somewhat. Still, VWO is a solid choice for comprehensive and very inexpensive exposure to emerging markets without South Korea.
VWO MSCI ESG Fund metrics Insight
The MSCI ESG Fund Quality Score measures the ability of ETF underlying holdings to manage key medium to long-term risks and opportunities arising from environmental, social, and governance factors, as determined by MSCI ESG Research LLC. As of July 27, 2017 the Vanguard FTSE Emerging Markets ETF MSCI ESG Fund Quality Score is 4.37 out of 10.
The fund’s Peer Rank reflects the ranking of a fund’s MSCI ESG Fund Quality Score against the scores of other funds within the same peer group, as defined by the Thomson Reuters Lipper Global Classification. VWO ranks in the 42nd percentile within its peer group and in the 17th percentile within the global universe of all funds in MSCI ESG Fund Metrics coverage.
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