Want to Invest in Emerging Markets and Avoid China? There's an ETF for That

Chinese stocks have been risky buys this year as government crackdowns and tensions with the U.S. have put investors on edge.

That makes investing in a global exchange-traded fund (ETF) or even one that is focused on all emerging markets a bit more undesirable than it otherwise would be.

However, if you still want to invest in emerging markets, there could be a viable alternative: iShares MSCI Emerging Markets ex China ETF (NASDAQ:EMXC). The fund gives exposures to other markets in Asia, with Taiwan accounting for 22% of its holdings. South Korea makes up just under 20% and India also represents a significant chunk at over 17%. It also invests in companies that are based in Brazil, Russia, Saudi Arabia, and many other countries.

The top holding in the fund is Taiwan Semiconductor Manufacturing (NYSE:TSM) at roughly 10%. Samsung Electronics makes up 6%. But beyond that, no other investment accounts for more than 2% of the ETF's weight – it has more than 600 holdings as of Aug. 19. And the stocks aren't excessively priced, as the fund averages a price-to-earnings multiple of 21. With a net expense ratio of just 0.25%, management fees aren't going to take away from much of your returns in this fund. In the past year, the ETF's total returns have totaled 29% -- just slightly below the S&P 500, which increased in value by 32%.

For long-term investors, the Emerging Markets ex China ETF is a solid opportunity to invest in some of the top markets in the world.