EMXC ETF

With the launch of its 41st U.S.-listed ETF, Dimensional's newest fund covers emerging markets while excluding China. The Dimensional Emerging Markets ex China Core Equity ETF (DEXC) lists on the NYSE Arca with an expense ratio of 0.43%.

EMXC is an emerging markets fund excluding China, and this will avoid the risk of China as China's economy is going through challenging times. Tensions between China and the U.S. will result in ongoing global supply chain readjustment, and many emerging markets will benefit. Geographical allocation to Taiwan and South Korea provides exposure to vibrant technology industry, with expense ratio lower than EEM.

Recently, the U.S. stock market has focused heavily on technology stocks, especially those at the forefront of the artificial intelligence revolution such as NVIDIA. Following record highs, NVIDIA has become a popular investment choice, leading investors to seek out the next promising opportunity.

Chinese stocks are riskier than average, due to the country's unique regulatory and political environment. Avoiding or reducing exposure to Chinese stocks seems wise, but difficult for investors in international and emerging market equity funds. EMXC explicitly avoids investing in China, sidestepping these issues. The perfect choice for emerging market investors wary about China.

Today, Direxion added to its lineup of leveraged and inverse ETFs with the launch of a 2X fund that covers emerging markets but excludes China. The Direxion Daily MSCI Emerging Markets ex China Bull 2X Shares (NYSE Arca: XXCH) offers twice the daily performance of the MSCI Emerging Markets ex China Index.

iShares MSCI Emerging Markets ex China ETF has outperformed the largest EM ETF- VWO since its inception, and has also done a better job of juggling its risk profile. EMXC offers access to attractive growth regions, particularly India, which is expected to be the fastest-growing major economy in the world and will likely benefit from political stability. EMXC's lack of exposure to China has been beneficial as the Chinese economy and markets continue to struggle. However, this sectoral preference may soon work against EMXC.

In 2023, many people have had concerns about investing in broad emerging markets index ETFs. For some, this is based on fundamentals for Chinese stocks but for others it's national security.

iShares MSCI Emerging Markets ex China ETF offers an alternative investment strategy for those seeking international diversification. The fund primarily concentrates on the equity markets of Taiwan, India, and South Korea, which present relatively secure investment avenues. The EMXC ETF has a competitive expense ratio, low turnover ratio, and a lower volatility compared to U.S. markets.

Investors were looking for ETFs to buy after the five nations that comprise the BRICS nations recently met to invite six more emerging market countries to join their economic club. Brazil, Russia, India, China, and South Africa asked Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates to join with them in an economic and geopolitical union.