Many investors in emerging market funds got a message from the fund warning that turmoil in relations between the United States and Russia could effect fund assets or performance. Notices looked something like this:
According to this news report:
U.S. securities regulators contacted fund firms with holdings in Russia last month, to make sure they were properly managing risk and disclosing the assets to investors.
But we do think that, despite the risks, emerging markets is still a good investment. Russia represents a small portion of the typical emerging market fund:
- 5.14% of iShares MSCI Emerging Markets ETF (EEM)
- 5.8% of FTSE Emerging Markets ETF (VWO)