EEM tracks the MSCI Emerging Markets Index, which holds large and mid-cap companies in emerging markets, with China, India, Taiwan and South Korea as the largest country weights. Semiconductors, internet companies and financials are among the largest holdings. It is one of the most liquid emerging-market ETFs, but its expense ratio is higher than that of broader alternatives such as VWO and IEMG. Emerging markets carry additional risk from politics, regulation, currency swings and capital controls.
