Hello
First of all I live in Belgium, not the US. I started investing a few months ago, learned everything by reading stuff online and am considering to start investing in emerging market funds to complete my portfolio. Especially now, it seems like it is a good moment. (Although I heard that trying to time the market is non-sense) Below is a short overview of how I proceeded to choose an appropriate index fund for me. As said I am a beginner, so feel free to criticize any of those steps:
1. Google:
I googled "top 10 best emerging market funds of 2017". Below are the ones that appeared the most often:
- Invesco China Technology ETF (CQQQ)
- KraneShares CSI China Internet (KWEB)
- iShares MSCI India Small-Cap ETF (SMIN)
Just googling "top 10"... I guess that's how the pro's do it as well, right? /s
2. Expense ratio:
I am more keen to use to not have a manager actively manage the money I invest in the fund. Because those are unnecessary costs considering the fact that I am interested in having my money stay there for the next 40 years. That being said... When looking at eg how this fund did the last ten years, I think that simply leaving my money there for fourty years, will just be useless. As you can see, the market went up and down but on average it actually stayed at the same level. Maybe that if I pay for a manager to do some active managing I will not be in that situation.
3. Tracking error:
I'd like to compare their performance with the performance of the index they are tracking, but I couldn't find on morningstar which index they are actually tracking.
So far I am still left with those 3 funds to choose from. How much do I actually know about China and India? Not much. But as I am going for the long run, I guess that doesn't really matter. I heard it is good to diversify your portfolio.
Based on which next criteria do you think I should choose the right fund to invest in out of those 3?
Side question:
- I didn't find the Vanguard Emerging Markets Stock Index (VEIEX) fund through my Dutch broker. So I think I cannot invest in that fund via my current broker. I was however wondering: does it make sense for me as a European to invest in Vanguard? I think people from the US, get some additional fiscal advantages when investing in those funds (I may be totally wrong), but we don't...
Thanks!
Submitted July 16, 2018 at 11:06AM by investment_questions https://ift.tt/2mjYVVf
