Emerging Markets ETF’s 50.4% Return Driven by Five Key Stocks
IEMG•IEMG delivered a 50.4% gain over the past year while its 14 largest holdings had a median return of only 2.7%. Just five stocks—led by Southern Copper (0.1% weight)—accounted for 96% of gains while PDD (0.5% weight) was the biggest drag, underscoring extreme return concentration.
1. Performance Overview
Over the past 12 months, the fund delivered a 50.4% total return while its 14 largest positions posted a median gain of just 2.7%, signaling uneven performance among top holdings.
2. Top Contributors and Drags
Southern Copper, despite a 0.1% fund weighting, was the single largest positive contributor, while PDD, at 0.5% weight, was the biggest drag, illustrating outsized effects from small positions.
3. Concentration Analysis
Five names generated 96% of combined gains among the top holdings, and the fund’s top five positions represent 28.8% of total weight, underlining the narrow base of returns despite 2,658 total stocks.
4. Implications for Diversification
Although the fund holds 2,658 emerging-market stocks for broad exposure, a large share of its return came from a few companies—most notably Taiwan Semiconductor Manufacturing at a 12.7% weight—emphasizing concentrated risk.
