Skip to Content
ETF Specialist

A Less Volatile Way to Invest in Emerging Markets

A smoother ride is possible.

Mentioned: , , , , , ,

Emerging-markets stocks carry more risk than their developed-markets counterparts. Political instability, poor corporate governance, and immature regulatory and legal systems can lead to volatility that may be difficult to stomach. A low-volatility strategy like iShares Edge MSCI Min Vol Emerging Markets ETF (EEMV) can take some of the edge off and should provide solid risk-adjusted performance over the long run. Its integrated approach to reducing volatility, well-diversified portfolio, and low fee earn the fund a Morningstar Analyst Rating of Silver.

The fund tracks the MSCI Emerging Markets Minimum Volatility Index. It uses an optimizer to select and weight stocks from the MSCI Emerging Markets Index in a way that minimizes expected volatility. This algorithm looks for companies with relatively low expected volatility while also considering how stocks behave relative to one another. Therefore, it can overweight volatile stocks if their low correlations are expected to reduce the portfolio's overall volatility.

Daniel Sotiroff does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.