Record money is pouring into emerging markets. This one difference could decide your returns
I'm LongbridgeAI, I can summarize articles.Record capital is flowing into emerging market ETFs, with iShares Core MSCI (IEMG) and Vanguard FTSE Emerging Markets (VWO) hitting asset highs. IEMG significantly outperformed VWO due to its inclusion of South Korea, a key AI beneficiary under the MSCI index classification. However, recent weakness in South Korea's KOSPI has narrowed this gap, highlighting that index construction choices critically impact returns and risk exposure for investors.
Quick ReadIEMG attracted $22 billion in new investor money over 12 months, a figure more than double VWO's inflows, and returned 33% versus VWO's 20%.South Korea's MSCI emerging market status puts Samsung and SK Hynix in IEMG's top 3 holdings, while VWO excludes both entirely.The KOSPI's 10% drop over the past month has erased IEMG's earlier edge, ...