State Street SPDR Portfolio Emerging Markets ETF

SPEM

Market cap $17.9B

Asia's smaller companies have delivered stronger returns than the region's large-cap stocks over the past five years, while also offering lower volatility and broader sector exposure, according to HSBC Asset Management. The firm said Asia small-cap stocks outperformed their large-cap counterparts by nearly 3% annualised at the index level over the period.

Two members of the U.S. House of ​Representatives on Monday will introduce ‌legislation to toughen a U.S. government ban on Chinese ​automakers from entering ​the American market just before ⁠President Donald Trump heads to China ​for talks.

CNBC's Dan Murphy delves into the Middle East's investment flows and provide insights on the global energy hub and the vast amounts of capital originating from the region on Access Middle East (12:00 – 13:00 SIN/HK). Please note this livestream is only available in Europe and India.

The Vanguard Total International Stock ETF gained nearly 37% in the past year. The Vanguard International High Dividend Yield ETF did even better, with a 37.1% return in the past year.

It's smart to diversify your portfolio beyond just U.S. stocks. These ETFs will quickly and easily have you invested in hundreds, if not thousands, of international stocks.

As U.S. fund outflows hit a 16-year high and volatility spikes, emerging market ETFs offer a path to diversification and growth.

State Street SPDR Portfolio Emerging Markets ETF remains a buy, supported by strong technicals, low valuation, and robust global equity momentum. SPEM offers broad EM exposure, a low 0.07% expense ratio, and a 2.58% dividend yield, with $16.7 billion AUM and high liquidity. The portfolio is large-cap and growth-heavy, with 23% in Taiwan (notably TSM at 11%), 30% in China, and 18% in India, creating concentration risk.

SPEM has delivered a 32% gain over the past year, outpacing the S&P 500's 16% return by a wide margin.

At the same time developed markets have been generating policy and macro noise, emerging markets have been quietly outperforming. The inextricable relationship between the direction of U.S. monetary policy and emerging market risk assets remains powerful, but this time the rally is not just about the Fed.

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.