The iShares Core MSCI Emerging Markets ETF (IEMG) offers exposure to a diversified basket of EM stocks. It’s been a challenging decade for EM investors considering disappointing economic growth, a weak commodity pricing environment, and volatile currency exchange rates. Still, even as this year’s pandemic added a layer of uncertainty, the ETF is now approaching an all-time high, driven by a new sense of optimism for a strong recovery. We expect the fund to maintain this momentum and generate positive returns over the next year. We expect that a weaker U.S. dollar, coupled with an improving outlook for global trade, should be positive for EM. We view IEMG as a quality fund and our top pick among EM ETFs as a long-term holding.
IEMG, with $63 billion in total assets, tracks the performance of the MSCI Emerging Markets Investable Market Index, which includes large, mid-, and