iShares MSCI Emerging Markets ETF

EEM

Market cap $23B

As concerns over Fed independence, credit card rate caps and international conflicts weigh on U.S. markets, emerging market ETFs offer a path to diversification and growth.

@Theotrade's Don Kaufman is back to being a bear on today's Big 3. He explains his bearish theses and offers example options trades in Costco (COST), the iShares MSCI Emerging Markets ETF (EEM), and Broadcom (AVGO).

Stocks in emerging markets seem untroubled by geopolitical risk in Venezuela, at least so far, even on the exchange in Caracas.

The iShares MSCI Emerging Markets ETF ( NYSE:EEM ) surged 39% in 2025 and added another 3.9% in the first week of 2026.

Market Catalysts anchor Julie Hyman breaks down the latest market moves for January 6, 2026. Investors are becoming bullish toward emerging markets as more investing shifts away from the United States.

Ben Harburg, Portfolio Manager at CoreValues Alpha, says overheated U.S. markets are driving investors toward emerging markets. He argues China is oversold, leading in next-gen tech and exports, and best accessed through diversified ETFs.

VWO charges a fraction of EEM's expense ratio and sports a higher dividend yield. EEM has delivered a stronger one-year return but saw a deeper five-year drawdown than VWO.

Emerging markets show strong momentum. With diversification flows rising, a weakening dollar and potential Fed cuts, here are the ETFs to tap the trend.

Emerging-market stocks have broadly crushed the U.S. equities market this year, in one of the biggest market surprises of 2025.

Emerging markets equity returns have been driven by extreme mega-cap concentration, with index breadth collapsing to historic lows and masking weakness across much of the opportunity set. This concentration has distorted relative results for active managers, particularly those constrained by diversification rules or broad benchmarks, as small-cap underperformance and index construction limit flexibility.