Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the BLDRS Emerging Markets 50 ADR Index (Nasdaq: ADRE ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at BLDRS Emerging Markets and see what CAPS investors are saying about the ETF right now.
BLDRS Emerging Markets facts
| Inception |
November 2002 |
| Total Assets |
$401 million |
| Investment Approach |
Seeks to provide investment results that correspond to the Bank of New York Emerging Markets 50 ADR Index, which tracks approximately 50 emerging market-based depositary receipts. |
| Expense Ratio |
0.30% |
| Dividend Yield |
2.9% |
| 1-Year / 3-Year / 5-Year Annual Returns |
(19.8%) / 12.2% / 1.5% |
| Top Holdings with High CAPS Rating (4 or 5 stars) and Portfolio Weight |
Taiwan Semiconductor Manufacturing (NYSE: TSM ) (6.7%)
Petrobras (NYSE: PBR ) (5.9%)
China Mobile (NYSE: CHL ) (5.4%) |
| Alternatives |
Vanguard MSCI Emerging Markets (NYSE: VWO ) Guggenheim BRIC (NYSE: EEB ) |
Source: Morningstar and Motley Fool CAPS.
On CAPS, 97% of the 463 members who have rated BLDRS Emerging Markets believe the ETF will outperform the S&P 500 going forward. These bulls include macaroniBBQ and All-Star NoVaAmPro, who is ranked in the top 5% of our community.
Having gotten on board a few years ago, macaroniBBQ nicely summed up the opportunity: "This ETF invests in companies with strong valuations, growth potential (while still being value picks), which also tend to yield dividends; that's why the beta is so low while still managing to be an 'emerging market' ETF."
In fact, BLDRS Emerging Markets sports a dividend yield of 2.9%. That's higher than that of other emerging market ETFs such as Vanguard MSCI Emerging Markets (2%) and Guggenheim BRIC (2.3%).
CAPS All-Star NoVaAmPro elaborates on the bull case:
This fund takes the top of the developing world's companies, which is a plus -- investing in places relatively poor in capital gives a bigger return on investment, but at a greater risk (because financial markets, and even political systems, may not be fully-formed or insulated against shocks as in the developed world). This one is kind of having it both ways -- the best companies (lower risk) in more dynamic, emerging economies (higher return).
What do you think about BLDRS Emerging Markets, or any other ETF for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional ETFs is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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