Knowledge is Power: S&P 500 Flaws, American Air Rage, Singapore Dividend Stocks Edition

Comparative Economics Fact: Interest paid on mortgages and property taxes are tax deductible in the US. In Canada they cannot be deducted.

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World War II Memorial, Washington, DC

 

Review: The MSCI Emerging Markets Index

One of the easiest and simplest ways to gain exposure to emerging market equities is via an ETF. Some of the world’s top emerging market ETFs benchmark to the MSCI Emerging Markets Index offered by the index provider MSCI. In fact, according to MSCI over $1.5 Trillion in assets are benchmarked to this index.

The MSCI Emerging Markets Index is comprised of equities from 23 emerging markets representing 10% of the world market capitalization.

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The long-term daily return of the MSCI Emerging Markets Index since 2012 is shown below:

The long-term return of MSCI Emerging Markets Index vs. MSCI World Index is shown below. The MSCI World Index represents the developed world markets:

The table below shows the annual return of the MSCI Emerging Markets Index vs. MSCI World Index:

Download: The MSCI Emerging Markets Index Factsheet (in pdf)

Sources:

Earlier:

Related ETFs:

  • iShares MSCI Emerging Markets ETF (EEM)

The iShares ETF has an asset base of over $31 billion. The Vanguard MSCI Emerging Markets ETF (VWO) is benchmarked to the FTSE Emerging Markets Index and not the MSCI Index. A few years ago Vanguard switched their benchmark to the other index provider FTSE. The fund has over $72 billion in assets.

Disclosure: No Positions

World Equity Market Highlights 2016 In Three Charts

Global equity markets had a subdued growth in 2016 according to a report by The World Federation of Exchanges. The global market capitalization increased by 4.4% and value of stocks traded declined by 27%. Much of this fall can be attributed to sharp sell-off on Chinese exchanges and restricted trading there. Number of newly listed companies were also down by 36%.

The following are three charts from the 2016 WFE Market Highlights report.

1.Domestic market Capitalization by region:

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2.Number of new listings by region:

3.Number of listed companies by region:

Source: WFE