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
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 Petrobras China Mobile |
| Alternatives |
Vanguard MSCI Emerging Markets |
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).
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