This Emerging Markets ETF Charges Just 0.07% and Ran Way Past The S&P 500

Core Insights - The SPDR Portfolio Emerging Markets ETF (SPEM) has achieved a 32% gain over the past year, significantly outperforming the S&P 500's 16% return, driven by growth in emerging market economies, particularly in Asia and Latin America [2][7] Performance Overview - SPEM provides diversified access to emerging markets with an expense ratio of just 0.07%, tracking over 800 holdings across countries like China, India, and Brazil [3] - Notable individual stock performances include Nu Holdings, which rose 28% with 41% earnings growth, while PDD Holdings fell 8% due to a focus on market share over profitability [7] Currency Impact - Currency movements, particularly the strength of the U.S. dollar, significantly influence emerging market returns; a weaker dollar enhances the value of local currency-denominated assets [4] - Monitoring the DXY Dollar Index is crucial, as a sustained move below 100 could support emerging market strength, while a rise above 108 may create challenges [5] Volatility Factors - Individual stock performance within SPEM can vary widely; for instance, PDD Holdings' decline illustrates the trade-offs between growth and profitability that many emerging market companies face [6]