Updated: Jul 16, 2020
The iShares Emerging Market ETF (EEM) was able to shrug off more troubling news regarding the relationship between the US and China. The ETF posted a healthy gain of 6.92% for the week. Recently EEM began purchasing stocks of Chinese companies listed on the Shanghai and Shenzen Stock Exchanges. Chinese stocks purchased on these exchanges are known as A shares. Historically, the Chinese government did not allow foreign investors to buy Chinese stocks listed in China. Investors had to purchase the stocks of Chinese companies listed on exchanges outside of China. Due to the regulatory changes and investor demand, the Chinese government opened its markets to foreign investors. By adding the Chinese A Shares to EEM, Chinese stocks now represent 40% of the ETF.
The Nasdaq 100 (QQQ) continues to plow ahead. It was the best performing ETF of the month and the year! It was up 6.1% in May and 16.7% year to date.