iShares MSCI Emerging Markets Asia ETF

EEMA

Market cap $1.66B

Retirees seeking geographic diversification face a fundamental tension: emerging markets promise growth but deliver volatility.

The iShares MSCI Emerging Markets Asia ETF (EEMA) offers concentrated exposure to high-growth Asian economies, with a 0.49% management fee and strong 2025 performance. EEMA's portfolio is heavily weighted toward IT and tech sectors, benefiting from surging AI demand and robust export growth in Taiwan and South Korea. China presents a compelling value opportunity, trading at 12.7x forward earnings, with government investment and export diversification supporting 5% growth expectations.

EEMA and EDZ saw trading volumes soar to more than double their averages, signaling rising investor focus on emerging market ETFs.

As Trump and Xi are expected to meet at the APEC Summit, optimism grows for Asia-Pacific Emerging ETFs poised to gain from a U.S.-China trade thaw.

The dollar selloff is helping developing countries' stocks.

Among APAC equity markets, Australia has a higher beta to oil prices while India, Indonesia and Thailand have lower betas. Domestic political uncertainties have been one main reason for the decoupling trend seen in Indonesia and Thailand.

Even with the world on edge, with rising geopolitical tensions, uncertain interest rate moves and tech stocks showing some mood swings, ETF investors aren't running scared. They're doing something smarter: diversifying their bets.

Now that inflation is making its way back into the economy, the yield curve will be one indicator that investors need to watch out for. The yield curve is made up of the 10-year bond yields minus the two-year bond yields, and a steepening curve means that 10-year yields rise faster than the two-year yields.

For investors seeking momentum, iShares MSCI Emerging Markets Asia ETF EEMA is probably on the radar. The fund just hit a 52-week high and is up 24.42% from its 52-week low price of $60.36/share.

Courtney Garcia, Payne Capital Management senior wealth advisor, joins 'Power Lunch' to discuss finding opportunities in emerging markets.