More To VWO's Asset Loss Than Meets The Eye

December 06, 2012


Part of the reason Vanguard’s MSCI Emerging Markets ETF (NYSEArca: VWO) lost $887 million last month is clearly a reaction to its plan to switch over to the FTSE emerging market index, however increased competition for investor dollars most likely plays a bigger role than many may think, according to an article on Benzinga.

Even with its recent asset losses, the $56.8 billion VWO remains the largest emerging markets ETF. The fund’s primary rival, the iShares Emerging Markets Index Fund (NYSEArca: EEM), brought in $2.34 billion during the month of November, the article said.

In addition to VWO’s  longstanding battle for assets with EEM, recently marketed funds focused on developing markets such as the iShares Core MSCI Emerging Markets ETF (NYSEArca: IEMG) carry lower fees than Vanguard’s huge fund.

Also, funds like the iShares MSCI Emerging Markets Minimum Volatility Index Fund (NYSEArca: EEMV) and the PowerShares DWA Emerging Markets Technical Leaders Portfolio (NYSEArca: PIE) are increasingly competing for investor assets too, writes Benzinga.

Visit to find out more on VWO and its rivals.

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