Low Cost Emerging Markets ETFs

Brazil – The Classic

•    Brazil’s economy is closely tied to commodity markets, supplying nearly one-fifth of global iron ore and ranking among the top oil and agricultural product exporters.¹¹
•    With approximately 150 million working-age people¹², Brazil constitutes 50% of South America’s GDP¹³ and around two-thirds of its equity market capitalization¹⁴.
•    The Brazilian government actively implements supportive policies for business, such as implementing a more intuitive dual value-added tax system. This should foster a business-friendly environment for decades to come.¹⁵

China – The Giant

•    China boasts the world’s 2nd largest population and is also a giant in economic terms, contributing around 17% to global GDP⁹. Surprisingly, it represents only 3% of a typical market cap-weighted portfolio¹⁰. 
•    Despite occasional volatility, Chinese equities have consistently outperformed global emerging markets over the long term.^*
•    China’s ongoing transformation towards technology and high-value products positions it as a potential leader in various sectors. As a result, investors should consider a standalone allocation.

_{* Past performance does not predict future returns.}

India – The Ambitious

•    As Asia’s growth engine, India boasts the world’s 5th largest economy and is poised to climb to 3rd place within the next five years. 
•    With the world’s largest population, India’s GDP per capita has surged over the last decade², driving economic expansion. 
•    A strong consumer market fuels growth, while reform-oriented policies and a commitment to fostering global partnerships bolsters manufacturing. 
•    India’s embrace of the digital transformation is enriching its economy, fostering progress in finance and e-commerce.

Saudi Arabia

•    Open to foreign capital since 2015 and now easily accessible through investment funds.
•    Economy is diversifying from oil, making it more attractive to foreign investors.
•    Implementing ambitious plans, such as NEOM¹⁶ and Vision 2030, to transform its economy, with labour participation and digitization underpinning future growth.

South Korea – The Innovator

•    Korea is one the few countries able to produce cutting-edge processers⁶ and high bandwidth memory⁷ crucial for smart devices.
•    Renowned worldwide for its diverse consumer products, Korea’s offerings span from cosmetics and appliances to reliable cars. 
•    Government-led reforms in Korea aim to enhance corporate governance and shareholder value, alleviating concerns around the “Korea discount”.⁸

Taiwan – The Challenger

•    Despite occupying only 0.03% of the world’s land, Taiwan is a dominant force in the semiconductor industry³. 
•    Advanced technologies like artificial intelligence, smartphones, electric vehicles, and virtual reality all rely heavily on chips manufactured in Taiwan, with no viable alternatives.⁴
•    Taiwan’s pivotal role in global supply chains is reinforced by its strategic geographic location and prominent shipping capacity. 
•    Despite being classified as an emerging economy, Taiwan’s GDP per capita is comparable to developed economies like Japan.⁵