The iShares Core MSCI Emerging Markets ETF (NYSE:IEMG) Is a great place for long-term investors seeking growth to park some cash over a long period time. This Exchange Traded Fund (ETF) is highly liquid and holds a wide range of excellent high-quality companies in foreign markets that domestic investors may not have the time to research or dive into.
This ETF tends to focus on emerging markets. The ETF has a heavier weighting towards some of the largest and most recognizable names in China and around the world.
Besides putting investors somewhat at ease, this market cap weighted structure does provide some additional safety from a risk perspective, in addition to the higher growth fundamentals of many smaller emerging market companies.
With emerging markets generally underperforming developed economies during this most recent bull market from a stock market perspective, one may feel hesitant focusing on emerging markets for growth, particularly with so many great North American and European growth success stories in technology sector, for example.
That said, I do see the majority of growth originating from emerging markets in the coming decades, so loading up on such equities today at lower relative valuations could, I believe, turn out very well a decade or two from now.
Invest wisely, my friends.
