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7 Emerging Market ETFs to Buy Now

By U.S. News & World Report

These are easy ways to invest internationally.

There’s a lot of talk about how America’s stock market rally is getting a bit long in the tooth. After all, we are in the midst of a bull market that ranks the second-longest in history; this 102-month rally is almost twice as long as the typical bull market length of just 54 months. As a result, some traders are looking overseas as an alternative. And why not, when some foreign stock markets are booming. There are a host of good emerging market ETFs that allow the typical American investors to access emerging markets without a lot of risk or knowledge required. Here are seven such funds to consider.

Vanguard FTSE Emerging Markets ETF (ticker: VWO)

The VWO is the largest emerging market fund by assets, with more than $85 billion under management. And as is typical of all Vanguard ETFs, it offers investors a way to deploy a focused strategy at a low cost; VWO charges investors 0.32 percent in fees, or $32 for every $10,000 you invest. The fund is admittedly a bit top-heavy, however. It’s biased toward the biggest emerging markets, with about 45 percent of the portfolio in China and nearby Taiwan alone. And its top 10 positions, including high-flying Chinese internet stock Tencent Holdings, represent about 20 percent of total assets.

iShares’ MSCI Emerging Markets ETF (EEM)

A similar fund worth a look is the EEM. It’s huge, with more than $36 billion under management, and it’s largely invested in the biggest emerging markets out there, with China at the top of its list. But practically, the fund is very different in that it is formulated to track an MSCI emerging market index instead of the FTSE one. And that means a few notable differences in holdings — the largest being that South Korea is 15 percent of the portfolio, second only to China’s 30 percent weight.

Goldman Sachs ActiveBeta Emerging Markets Equity ETF (GEM)

If you’d prefer not to simply buy an index fund with a fixed list of emerging market names, the GEM is a more active ETF that hand-picks its components based on the investment bank’s assessment of a stock’s “good value, strong momentum, high quality and low volatility.” That manifests itself in a very different makeup than other ETFs; right now, Alibaba Group Holdings (BABA) and Samsung are top holdings that both the VWO and EEM funds haven’t prioritized. Tactical allocations like this theoretically fuel outperformance — so long as the managers at Goldman are making wise picks, of course.

Guggenheim MSCI Emerging Markets Equal Country Weight ETF (EWEM)

What if you want to play emerging markets, but aren’t sure which countries you should be biased toward and which ones you should try to avoid? Then let the EWEM take the guesswork out of the equation. A twist on the previously mentioned iShares EEM fund, this ETF uses the same index but requires all countries to be equally represented in the portfolio. The approach helps smooth out volatility if one region has a bad run. But the drawback is that if one country is hot, the fund cannot put more money into that opportunity.

iShares MSCI Minimum Volatility Emerging Markets ETF (EEMV)

Another approach to emerging markets that could smooth out the bumps along the road is the EEMV. As the name implies, the strategy of this fund involves investments in faster-growing nations but with an eye toward keeping risk relatively low. The EEMV does this primarily through sector allocations. While tech and finance companies still play a big role, as in other funds, the top picks tend to be more entrenched companies. Case in point: $190 billion chipmaker Taiwan Semiconductor Manufacturing (TSM) makes the top five. There also is more attention paid to low-risk industries that provide reliable cash flows, like telecommunications.

SPDR S&P Emerging Markets Dividend ETF (EDIV)

Speaking of entrenched emerging markets plays, what if you’re looking to play the biggest names in these regions for long-term returns and potential income? If you are, take a look at the EDIV. The fund delivers a roughly 3.8 percent yield, which is almost twice what the typical domestic large-cap fund will pay you right now. An added plus for risk-averse investors looking for long-term returns: EDIV rebalances regularly with a mandate that no single company can be allocated at more than 3 percent of the total portfolio.

iShares MSCI Frontier 100 ETF (FM)

Of course, you may be wondering why we still consider China an emerging market when it’s second only to the U.S. in terms of gross domestic product. Isn’t the biggest opportunity in a region like this mostly in the rearview mirror? If you’d prefer to get in on the ground floor of the next generation of emerging markets, then consider the FM. The top three regions this fund targets are Kuwait, Argentina and Vietnam — smaller and much more volatile nations, yes, but also ones that theoretically have the highest ceiling for future growth. This is a far more aggressive play, but potentially a more rewarding one.

More from U.S. News

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7 Emerging Market ETFs to Buy Now originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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