Southern Copper Drove 96% of IEMG’s 50.4% Annual Return
SCCO•Southern Copper, despite a 0.1% weighting in iShares Core MSCI Emerging Markets ETF, was its single biggest contributor to the fund’s 50.4% gain over the past year. The fund’s five largest contributors, led by Southern Copper, produced about 96% of its combined gains, underlining a highly concentrated return profile.
1. Outsize Contribution from Southern Copper
Southern Copper made up just 0.1% of the ETF but emerged as the single largest positive contributor, accounting for a disproportionate share of IEMG’s 50.4% year-over-year return.
2. Concentrated Return Profile
The five biggest contributors, including SCCO, generated about 96% of the fund’s total gains, while the median of its largest positions rose just 2.7%, highlighting a significant gap between overall performance and broad holding returns.
3. Diversification Implications
Although IEMG holds 2,658 positions, its recent performance was driven by a handful of names, exposing investors to concentrated performance risk. Tracking the top contributors offers deeper insight into the ETF’s true exposure and potential volatility.
