Should We Invest in Emerging Markets?

A total international fund will include some exposure to emerging markets. The question we cover in this video is whether we should seek additional exposure through an emerging market ETF or mutual fund.

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#emergingmarkets #international #robberger

ABOUT ME

While still working as a trial attorney in the securities field, I started writing about personal finance and investing In 2007. In 2013 I started the Doughroller Money Podcast, which has been downloaded millions of times. Today I'm the Deputy Editor of Forbes Advisor, managing a growing team of editors and writers that produce content to help readers make the most of their money.

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DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. Your investment and other financial decisions are solely your responsibility. It is imperative that you conduct your own research and seek professional advice as necessary. I am merely sharing my opinions.

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[evanwheeler]

3:36 Specific small cap value funds outperform because of their exposure to risk factors that carry empirically provable premiums, such as Size (small vs. big), Price (low vs. high), Profitability (more vs. less), Investment (less vs. more), and lastly, Market risk, which everyone gets if they broadly diversify their holdings. Anyone interested in better risk adjusted returns should read about factor investing and Eugene Fama and Ken French's groundbreaking research on the topic. Dimensional Fund Advisors and Avantis both have factor mutual funds and ETFs tailored to these investing strategies. YouTuber and wealth manager Ben Felix also has multiple podcast episodes and a community forum (Rational Reminder podcast and RR Community) focusing on these topics.

[mikephilpot]

For me, I’m definitely keeping emerging markets in my portfolio. I want to own the entire world market and I don’t want to miss out on the countries that are included in my emerging market funds. I just made sure to find the emerging market funds that complemented the rest of my portfolio. e.g. If I already had the South Korean market in an international fund, then I wanted to find emerging market funds that didn’t include South Korea. Definitely a crazy ride, but worth it, imho. Down this year, but it’ll be back up other years. I’m a firm believer in more diversity and without emerging markets, I’m gonna miss out on about 11% of the world’s equities by market cap. Plus, emerging markets make up 45% of the world’s GDP. I definitely want to participate in that. 👍

[okrajoe]

Personally, my roller-coaster ride on Emerging Markets was no fun...

[greggarner]

Hi, I think most Middle East/Africa and Latin America are considered Emerging Markets, so that adds another ~7% to the 16% you discuss in the video, right?

[IndexInvestingWithCole]

I liked this video because he confirmed my biases by liking the stocks I like!!

[GloriaReed-hd]

Eh, as globalization slowly ends, I recommend sticking with the USA. Even during the peak years of globalization Jack Bogle recommended US-only funds.

[FatherGapon-gwyo]

My India/Turkey/Japan mix is a serious performer with great dividends that make nutty US volatility look like an amateur circus.

[politicscommentator]

Me, personally, I like to have emerging markets within a total international fund. Less micromanaging. That is why I think 15%-20% in total international fund works fine with the percentage goal you are looking for in emerging markets.

[emrahgedik]

what is the difference between "İshares core MSCİ emerging" and "Vanguard FTSE Emerging"? inner is almost the same. OOk with country distribution. which one will be better? Have noticed that with "Vanguard emerging" no "samsung" is in the top 10-20.. Maybe that's a small difference. Thank you..

[joaopaulotavaresdasilva]

Brazil had 7 currencies since 1822. Our currency was only created in 1994 after many unsuccessful attempts to fight hyperinflation. We had dictatorships. Two presidents impeached in the last 20 years. There was a savings confiscation in 1990. And there are still many companies that manage to survive all that. And it's still profitable long term and a good idea to buy stocks here lol.

[hanwagu]

vanguard shows 26.80% emerging markets Regions.

[マリーゴ]

Investing is unstable, but it's a good learning experience I think

[jeffsim]

Yes. Emerging markets = exposure to commodities at low prices

[alex]

There is no country on the world map called “emerging markets.” These countries are called 🇨🇳 China, 🇮🇳 India, 🇧🇷 Brazil, 🇲🇽 Mexico and others. I prefer to choose. I don’t want my money to be where there is no democracy. I am just a foreign investor there with no rights.