As I discussed yesterday my Emerging Markets Allocation in my Low Charge Portfolio had fallen to 3.2% against a target allocation of 5.0%. This was a variation of 37% against my target which was by far the worst of any of my asset classes. I’ve therefore used 0.8% of my total portfolio value held in cash to buy into the db x-trackers MSCI EMERGING MARKETS TRN INDEX ETF with ticker symbol XMEM on Friday afternoon. This gives me an allocation to emerging markets now of 4.0%.
As always I checked the internet and can still only find 3 sensibly low cost ETF’s. These are the:
- db x-trackers MSCI EMERGING MARKETS TRN INDEX ETF with ticker symbol XMEM and a TER of 0.65%
- Lyxor MSCI Emerging Markets (TR) GBp (LSE) with ticker symbol LEME and a TER of 0.65%
- iShares MSCI Emerging Markets with ticker symbol IEEM and a TER of 0.75%
If anybody knows of any other options for UK investors then please leave a comment as I would love to know about it. I already hold XMEM but chose to buy again as when considering both fees and taxes, along with the fact that I am buying XMEM in my ISA, I still think it provides the minimum penalty when it comes to the cost of fees and taxes as I explained here. This is one of the cornerstones of my strategy – minimising fees and taxes. There are so many out there trying to get their hands on part of your return (HM Revenue & Customs, Financial Planners, Fund Managers) and given the miracle of compound interest I really am trying to minimise what I have to give away to maximise my return.
For those that are interested the reasoning behind my emerging markets allocation in my low charge portfolio can be found here.
As always do your own research.