iShares MSCI Emerging Markets ex China ETF

EMXC

Market cap $13.1B

The iShares MSCI Emerging Markets ex China ETF invests in emerging markets such as Taiwan, India, and South Korea. While recent headlines suggest tariffs on China will be reduced by 10%, they remain elevated at 47%, with tensions between the U.S. and China likely to simmer. Against this backdrop, EMXC offers investors the opportunity to benefit from attractive emerging markets valuations while mitigating the risk of new China tariffs.

Adventist Health System West sold 837,660 shares of EMXC valued at $52.9 million in the quarter. The change represented 8.6% of 13F reportable assets under management.

Carr Financial Group Corp added 59,138 shares of iShares MSCI Emerging Markets ex China ETF (EMXC), an estimated $3.82 million trade based on the average price for Q3 2025, according to an SEC filing dated October 7, 2025.

The on-again-off-again trade war between the U.S. and China is enough to keep investors guessing. Some investors are avoiding China stocks.

Emerging markets investing has had an overall positive year in 2025. Entering the year, with many U.S. investors underweight foreign equities, some market watchers anticipated big opportunities abroad.

Getting emerging market exposure is a viable option in the current market environment. That's especially so given the global de-dollarization and prospect of further rate cuts by the Federal Reserve.

The artificial intelligence sector is showing critical warning signs that suggest a significant correction may be approaching. Recent market analysis reveals that AI stocks, particularly the “Magnificent Seven,” have been making lower highs since December 2024, diverging from broader market performance – a pattern that historically precedes major corrections.

Emerging market investing has long been dominated by China's outsized role. The country once accounted for roughly 30%-40% of many EM indexes.

EMXC benefits from global supply chain shifts and friendshoring, focusing on high-growth emerging markets, especially India, South Korea, and Brazil. The fund is heavily weighted in tech (notably TSMC) and financials, offering exposure to digital growth and resilient banking sectors in emerging economies. Despite strong tailwinds, EMXC's concentration risks, currency exposure, and diluted focus make its risk/reward profile less compelling than sector-specific ETFs.

Diversifying into markets outside of the U.S. can be a smart move, especially if it means side-stepping any potential U.S.