SPEM ETF

The SPDR Portfolio Emerging Markets ETF is an affordable option that invests in promising small companies in developing markets. Recently, it has gained from its 30% investment in Chinese stocks due to the government's announcement of stimulus plans. Although there are risks, especially if China does not continue its support, I still recommend buying SPEM because of its current growth and potential for further gains.

Stretched valuations in US equity markets raise concern and suggest investors should look globally for investment opportunities. The SPDR Portfolio Emerging Markets ETF is a solid low-cost investment vehicle providing exposure to the investable universe in Emerging Markets. SPEM's ability to invest in smaller-cap equities allows it to outperform other EM funds that focus solely on large- and mid-cap equities.

I analyze the characteristics of the SPEM ETF, which focuses on emerging markets. The overexposure to China has impacted the ETF's performance, but its position in the Indian market seems promising. SPEM has good sector diversification, outperforms the category average in terms of risk performance, and has strong liquidity and low expenses.