Top 10 Best Diversified Emerging Markets Stock Mutual Fund of 2010

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Equity Mutual Funds or stock funds can be classified into 3 main categories: Domestic Stock Funds, International Stock Funds, and Emerging Market Stock Funds. There also can be several different investment style associated with these funds including value approach, growth fund, or blend or mix fund. Emerging Market Mutual Funds invest majority of fund's assets in the financial markets of a developing country, typically a small market with a short operating history. Compare to its counterpart in developed countries, this asset class is still small and has a lot of growth potential. These funds offer higher potential returns in exchange for greater risk (i.e. higher risk with higher reward). Most of this fund will invest in the following emerging markets countries like India, China, Brazil, Turkey, Russia, South Korea, Malaysia, Indonesia, and more.

More details about best mutual funds, please check my previous article.


Top 10 and Criteria

Looking at the top performer funds can provide a better understanding what is working and what is not working for 2010. This idea may provide insight about how to invest in 2011. The following top 10 best performer emerging market stock fund of 2010 has the following criteria

  1. The fund has the highest YTD in its category especially diversified emerging markets
  2. The fund has > 400 million assets
  3. It is not a short or leverage fund


The Top 10 Best Diversified Emerging Markets Stock Mutual Funds of 2010:

  1. Templeton Emerging Markets Small Cap A
  2. Wasatch Emerging Markets Small Cap
  3. DFA Emerging Markets Small Cap I
  4. Virtus Emerging Markets Opportunities A
  5. T. Rowe Price Em Eur & Mediterranean
  6. Invesco Developing Markets A
  7. Oppenheimer Developing Markets A
  8. Driehaus Emerging Markets Growth
  9. DFA Emerging Markets Core Equity I
  10. Northern Multi-Manager Emerging Mkt Eq


Top Emerging Stocks Fund of 2010 Info

(click column header to sort results)
No  
Mutual Funds Description  
Ticker  
Rank  
Yield  
Expense ratio  
Morningstar Rating  
Total Asset (Mil)  
Min. To Invest  
1
Templeton Emerging Markets Small Cap A
TEMMX
1
0.34%
2.10%
3
456.22
$1,000
2
Wasatch Emerging Markets Small Cap
WAEMX
1
0.34%
2.10%
5
598.07
$2,000
3
DFA Emerging Markets Small Cap I
DEMSX
2
1.37%
0.80%
4
1,800.00
$0
4
Virtus Emerging Markets Opportunities A
HEMZX
3
1.03%
1.72%
4
862.76
$500
5
T. Rowe Price Em Eur & Mediterranean
TREMX
6
0.00%
1.64%
1
771.64
$2,500
6
Invesco Developing Markets A
GTDDX
9
1.03%
1.66%
4
2,190.00
$1,000
7
Oppenheimer Developing Markets A
ODMAX
9
0.34%
1.35%
5
17,700.00
$1,000
8
Driehaus Emerging Markets Growth
DREGX
10
0.00%
1.75%
4
773.26
$10,000
9
DFA Emerging Markets Core Equity I
DFCEX
13
1.37%
0.67%
4
4,120.00
$0
10
Northern Multi-Manager Emerging Mkt Eq
NMMEX
17
0.36%
1.48%
N/A
2,430.00
$2,500
Templeton Fund Holding
Templeton Fund Holding

1. Templeton Emerging Markets Small Cap

Templeton Emerging Markets fund is seeking for long-term capital appreciation. Most of the net assets (around 80%) are invested in securities of small cap companies in emerging market countries, up to 20% in in developed market countries and 15% in illiquid securities. Furthermore, it also invests in debt obligations of issuers located in emerging market countries for up to 20%. Mark J. Mobius has been managed this fund since October 2006. It has 0.30% of 12b1 fee and 5.75% of front end sales load. This fund has 2.10% expense ratio which is quite high compared to the average in the category which is 1.76%. Other class tickers for Templeton Emerging Markets Small Cap A are TEMZX, TCEMX and TEEMX. This fund can be purchased from 64 brokerages such as Scottrade Load, TD Ameritrade Inc, Morgan Stanley, TIAA-CREF Brokerage Services, Wells Fargo Advisors, E TRADE Financial, and more.

Top 5 regions allocations for this fund are Asia (40.90%), Europe (30.40%), Mid East/ Africa (7.30%), Latin America/ Caribbean (5.30%) and North America (1.20%). The top 10 holdings for this fund include I.T Ltd., Anadolu Cam Sanayii A.S., Federal Bank Limited, Maharashtra Seamless Ltd., Synergy Co,Pinar Sut Mamulleri Sanayii A.S., Jiangling Motors Corporation, Ltd., Egyptian International Pharmaceutical Investments, Anhui Tianda Oil Pipe Co., Ltd. and Zhaikmunai LP GDR (ZKM).


2. Wasatch Emerging Markets Small Cap

Wasatch Emerging Markets Small Cap investment is seeking for long-term growth of capital. The major investment for this fund is in small emerging market companies. It searches for the companies in the emerging market countries with market capitalizations of less than $3 billion, and invests at least 80% of assets in their equity securities. The fund is well-managed by Roger Edgley since October 2007. There is no 12b1 fee as well as no front end sales load for this fund. The expense ratio is 2.10% per year.

The regions allocations for this fund are Asia (57.2%), Latin America (16.4%), Middle East/ Africa (14.3%), Eastern Europe (9.4%), Western Europe (1.6%) and North America (1.1%). Top 10 Holdings of this fund out of total 153 holdings as of January 2011 include Mr Price Group Ltd., PT Holcim Indonesia Tbk, Bata India Ltd., Clicks Group Ltd., Colgate-Palmolive India Ltd., CETIP S.A., Mahindra & Mahindra Financial Services Ltd., Cia. Hering, Tegma Gestao Logistica and Dynasty Ceramic Public Co. Ltd. Most of the holdings are Brazil companies.


3. DFA Emerging Markets Small Cap I

Dimentional Fund Advisors Emerging Markets Small Cap fund pursues for long-term capital appreciation. This fund is categorized as Feeder Portfolio, meaning it invests substantially all of its assets in its corresponding Master Fund, The Emerging Markets Small Cap Series (the Emerging Markets Small Cap Series) of The DFA Investment Trust Company (the Trust). While at least 80% of net assets of the master fund is invested in emerging market investments, which are purposely selected as Approved Market securities of small companies. In order to generate additional income, the fund can also lend its portfolio securities.

The fund manager is Karen Umland since December 1998. There is no 12b1 fee as well as no front end sales load for this fund. This fund has average annual return of 30.18% over the past one year and 17.51% over the past five years. This fund can be purchased from 24 brokerages such as Charles Schwab Institutional, Scottrade TF, Fidelity Institutional FundsNetwork, SunGard Transaction Network, TD Ameritrade Institutional Services, and more.

The top 10 holdings of this fund are Grupo Continental Sab De CV, Embotelladoras Arca Sab De CV, Tongaat Hulett Ltd, Brilliance China Automotive Holdings Ltd, Lojas Renner SA, Spar Group Ltd/THE, Foschini Group Ltd/THE, Semiconductor Manufacturing International Corp, JD Group Ltd/South Africa and Eletropaulo Metropolitana Eletricidade De Sao Paul.


Virtus Fund Holding
Virtus Fund Holding

4. Virtus Emerging Markets Opportunities A

The investment in Virtus Emerging Markets Opportunities Fund pursues for capital appreciation. The main net assets investment for this fund is in the equity-linked securities of companies located in countries defined by the World Bank and other agencies as emerging market countries. What is called as emerging markets countries mostly include every nation in the world with the exception of the U.S., Japan, New Zealand, Canada, Australia and most nations located in Western Europe. Other class tickers for this fund are PICEX and HIEMX.

Rajiv Jain has managed this fund since May 2006. It has 0.25% for 12b1 fee and 5.75% front end sales load. This fund has returned 17.16% over the past one year and 11.48% over the past five years.

The top 5 countries for the fund allocation are India (27.35%), Brazil (21.69%), Cayman Islands (8.10%), United Kingdom (6.42%) and South Africa (6.02%). Top 10 Holdings of this fund as of January 2011 include HDFC Bank Ltd., Housing Development Finance Corp. Ltd., Companhia de Bebidas das Americas ADS, Souza Cruz S.A., British American Tobacco PLC, ITC Ltd., Baidu Inc. ADS, Amorepacific Corp., Semen Gresik and Kangwon Land Inc.


5. T. Rowe Price Em Eur & Mediterranean

T. Rowe Price Emerging Europe & Mediterranean fund investment seeks for long-term growth of capital. As of its name, at least 80% of its net assets are invested in the emerging markets of Europe and the Mediterranean region. The fund plans to significantly make all of its investments in common stocks of companies located or having with the headquarters in the emerging market countries such as Czech Republic, Croatia, Estonia, Egypt, Israel, Hungary, Poland, Turkey and Russia. Therefore, the fund may purchase the stocks of companies of any size.

The fund is managed by S. Leigh Innes since September 2007. It has 0.00% 12b1 fee but with no front end sales load. It has 1.64% expense ratio per year. The minimum balance to invest in this fund is $2,500 for brokerage account. This fund can be purchased from 66 online brokerages such as Vanguard, Firstrade, TD Ameritrade Retail, E TRADE Financial, UBS Financial Services Inc, T Rowe Price, and more.

The major allocation of this fund is in Russia, which takes about 61.4% of the total fund. The next is Turkey with 10.1%, and the remaining countries receive less than 5% allocation each. The top 10 Holdings of this fund as of 01 February 2011 include CTC Media, Gazprom, Globaltrans Investment, MHP, Magnit, Novatek OAO, Rosneft Oil, Sberbank of Rusia, TMK OAO and X5 Retail Group. This Emerging Europe and Mediterranean Fund had a total of 45 holdings as of 31 December 2010.


6. Invesco Developing Markets A

The investment in Invesco Developing Markets seeks long-term capital growth. Most of the fund is invested in the securities of companies in the developing markets countries that are not included in the MSCI World Index. Normally the calculation is that it invests in issuers in at least three countries, with no more than 25% of assets investment in issuers in any one country. Beside securities, it may invest in lower-quality debt securities and in any one foreign currency and securities denominated in or indexed to such currency.

The Fund Manager is Borge Endresen since May 2003. The expense ratio of this fund is 1.66%, and it has 0.25% for 12b1 fee and 5.50% for front end sales load. The minimum balance to invest in this fund is $1,000 for brokerage account. This fund has returned 15.84% over the past decade. Other class tickers for Invesco Developing Markets A fund are GTDBX, GTDCX, GTDYX and GTDIX.

The top 5 countries allocations for this fund are Brazil (15.64%), China (10.34%), Mexico (10.11%), Philippines (8.20%) and Indonesia (5.97%). The top 10 holdings of this fund as of 31 January 2011 include Banco Bradesco Adr, Taiwan Semiconductor Man, America Movil Series L Adr, Ind & Comm Bk Of China H, Perusahaan Gas Negara Pt., Grupo Televisa Sa Adr, Philippine Long Dist Tel, Fomento Economico Mexicano Sab Adr, Cielo Sa and Naspers Ltd N Shs.


Oppenheimer Fund Holding
Oppenheimer Fund Holding

7. Oppenheimer Developing Markets A

The investment in Oppenheimer Developing Markets is mainly seeking for capital appreciation. It highlights the investments in growth companies which can be in any market capitalization range. The net assets, plus borrowings for the investment purposes are mainly invested in equity securities of issuers whose main activities are in at least three developing markets. This fund may invest up to 100% of its total assets at times in foreign securities.

This fund is managed by Justin Leverenz since May 2007. It has 0.25% for 12b1 fee and 5.75% for front end sales load. The expense ratio of this fund is 1.35% per year. The minimum balance to invest in this fund is $1,000 for brokerage account. This fund has returned 15.10% over the past one year and 2.05% over the past three years. This fund can be purchased from 103 online brokerages such as Northwestern Mutual, Firstrade, ING Financial Advisers, Schwab Institutional Load Waived, UBS Financial Services Inc, T Rowe Price, and more.

You may find other asset class funds which don’t have front end sales load and lower expense ratio as this fund is also offered in most 401K fund selection. Other tickers of Oppenheimer Developing Markets are: ODVBX, ODVCX, ODVYX, and ODVNX.

Asia (exclude Japan) has 38.5% of the total percentage of assets investment and 29.4% for Latin America. Top 10 holdings of this fund as of 31 January 2011 include Infosys Technologies Ltd., High Tech Computer Corp., Petroleo Brasileiro SA, America Movil SAB de CV, NHN Corp., Magnit, Impala Platinum Holdings Ltd., Taiwan Semiconductor Manufacturing Co. Ltd., CNOOC Ltd. and Fomento Economico Mexicano SA de CV, Sponsored ADR.


8. Driehaus Emerging Markets Growth

Driehaus Emerging Markets Growth fund investment is seeking for capital appreciation maximizing. The fund invests not less than 65% of its net assets in the equity securities of companies in emerging markets around the world. It may invest in companies with limited operating histories. The fund is managed by Howard Schwab since January 2008. It has neither 12b1 fee nor front end sales load. The expense ratio for this fund is 1.75%. The minimum balance to invest for brokerage account is $10,000.

The top 5 regionals allocations for this fund are Asia (46.0%), Americas (22.5%), Europe (15.0%), Africa (7.0%) and Middle East (4.2%). Top 10 holdings of this fund as of January 2011 include Samsung Electronics Co. Ltd., Banco do Brasil S/A, Petrobras Petroleo Brasileiro, Companhia Brasileira de Distribuicao Grupo Pao de Acucar, Vale S.A. ADS, Urakali JSC ADS, Cosco Pasific Ltd., Taiwan Semiconductor Manufacturing Co. Ltd., Sasol Ltd and Sberbank.


9. DFA Emerging Markets Core Equity I

This Dimensional Fund Advisors Emerging Markets Core Equity fund investment is seeking for long-term capital appreciation. With the maximum of 25% assets investment in any one industry, it invests at least 80% of the assets in the securities of emerging market small capitalization companies. This DFA Emerging Markets fund may also invest up to 10% in the equities of other investment companies in emerging markets. Karen Umland has managed this fund since April 2005. This fund has neither 12b1 fee nor front end sales load. The expense ratio for this fund is 0.67% which is quite low compared to the other fund in the class.

Top 5 sector allocations for this fund are Financials (23.3%), Materials (16.4%), Information Technology (11.2%), Industrials (11.1%) and Energy (11.1%). Top 10 holdings of this fund as of January 31, 2011 include Samsung Electronics Co Ltd, Gazprom OAO, Petroleo Brasileiro SA, Vale SA, China Mobile Ltd, Petroleo Brasileiro SA, Banco Bradesco SA, Itau


10. Northern Multi-Manager Emerging Mkt Eq

The investment in Northern Multi-Manager Emerging Market Equity pursue in providing long-term capital appreciation. Normally, at least 80% of net assets investment is allocated in equity securities of issuers domiciled in emerging and frontier markets. It utilizes a multi-manager approach. It means that while the fund assets are allocated to one or more sub-advisers, in percentages determined at the discretion of the Investment Advisers: Unibanco Holding SA, Industrial & Commercial Bank of China and China Construction Bank Corp.

George D. Mussalli has been the fund manager since November 2008. This fund has 0.00% for 12b1 fee with no front end sales load. The fund has returned 19.10% over the past one year. The minimum balance to invest is $2,500 for brokerage account.

The assets allocation is 96% in stocks and 4% in cash. Top 5 countries allocations for the fund are Brazil, China, South Korea, Taiwan and South Africa. Top 10 Holdings of this fund out of 374 total holdings are Samsung Electronics Co Ltd, America Movil SA, Itau Unibanco Holding SA, NCsoft Corp, China Mobile Ltd, Truworths International Ltd, Petrol Brasileiros SA, Taiwan Semiconductor Manufacturing Co Ltd, Vale SA and CNOOC Ltd.


Disclosure: I have no affiliation with any of these funds. I also have no position in these funds. Please do your own research for additional details. Please trade and invest responsibly. Past Performance is No Guarantee of Future Results

Top 10 Best Stock Fund Performance

(click column header to sort results)
No  
Mutual Funds Description  
Ticker  
1 Yr  
3 Yr  
5 Yr  
10 Yr  
1
Templeton Emerging Markets Small Cap A
TEMMX
29.99%
-0.60%
N/A
N/A
2
Wasatch Emerging Markets Small Cap
WAEMX
56.10%
6.19%
N/A
N/A
3
DFA Emerging Markets Small Cap I
DEMSX
29.89%
4.20%
17.69%
19.16%
4
Virtus Emerging Markets Opportunities A
HEMZX
17.16%
-2.59%
11.48%
14.70%
5
T. Rowe Price Em Eur & Mediterranean
TREMX
30.41%
-10.72%
3.40%
15.12%
6
Invesco Developing Markets A
GTDDX
14.87%
-1.02%
13.50%
15.84%
7
Oppenheimer Developing Markets A
ODMAX
15.10%
2.05%
13.45%
18.00%
8
Driehaus Emerging Markets Growth
DREGX
19.21%
-3.24%
14.05%
17.06%
9
DFA Emerging Markets Core Equity I
DFCEX
20.42%
1.35%
14.74%
N/A
10
Northern Multi-Manager Emerging Mkt Eq
NMMEX
19.10%
N/A
N/A
N/A
11
Columbia Emerging Markets A
EEMAX
10.89%
-5.81%
8.64%
14.07%
12
DFA Emerging Markets Value I
DFEVX
18.28%
-0.12%
16.33%
20.52%
13
Lazard Emerging Markets Equity Open
LZOEX
19.06%
0.64%
12.76%
17.33%
14
Harding Loevner Emerging Markets
HLEMX
18.10%
-3.30%
10.63%
15.61%
15
Russell Emerging Markets A
REMAX
10.81%
-3.62%
11.21%
14.61%

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