The growing gap in economic expansion between the world's rich and developing countries is clear. Gonzalo Pangaro, manager of T. Rowe Price Emerging Markets Stock Fund (symbol PRMSX), notes a similar polarization of performance and outlook among emerging economies. Pangaro, who was born in Argentina and is based in London, favors countries, such as Brazil and China, with healthy fiscal and trade balances. In his globally diversified fund, he's shying away from Eastern Europe, where finances are less sound.
He's also focusing on populous emerging markets with expanding domestic demand for basic consumer goods and services. For example, Wal-Mart de Mexico is a large holding. He's a big fan of Mexico's América Móvil, which is to Latin America what China Mobile is to China. The fund, a member of the Kiplinger 25, has one-fourth of its assets in bank stocks, including Itaú Unibanco. The fund returned 84% over the past year as of February 15.
Matthews Asia Dividend (MAPIX) is an intriguing fund. Yields are higher in Asia than in the U.S., earnings and dividends are growing faster, and several of the currencies, including the Chinese yuan, are under structural pressure to appreciate. This fund yields a juicy 4.5% and, as dividend-oriented funds have demonstrated elsewhere, the portfolio is much less volatile than a market index.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Manager Jesper Madsen splits Asia Dividend's assets almost evenly among small, midsize and large companies (the fund can also invest in Japanese and Australian stocks). He prefers domestically oriented businesses (his current top five holdings are all Asian telecommunications operators, which tend to pay lush dividends and generate strong and stable cash flows). Over the past year, the fund returned 60%.
The Price and Matthews funds both charge annual fees of 1.32%. If you seek a lower-cost way of investing in the developing world, consider Vanguard Emerging Markets Stock (VWO), an exchange-traded index fund that charges only 0.27% a year. Its one-year return: 72%.
-
-
Four Threats to the Distribution Phase of Retirement
Keep challenges such as inflation, market volatility and more in mind when it’s time for you to shift from saving for retirement to spending.
-
Using a 529 Plan? Here’s What to Keep in Mind
As the school year progresses, ensure you’re using the money for qualified expenses and keeping track of documentation. Taxes and options for unused funds are also considerations.
-
Best Banks for High-Net-Worth Clients
wealth management Kiplinger's 2023 list of the best banks for higher-net-worth clients.
-
Stock Market Holidays in 2023: NYSE, NASDAQ and Wall Street Holidays
Markets When are the stock market holidays? Take a look at which days the NYSE, Nasdaq and bond markets are off in 2023.
-
Stock Market Trading Hours: What Time Is the Stock Market Open Today?
Markets When does the market open? While it's true the stock market does have regular hours, trading doesn't stop when the major exchanges close.
-
Bogleheads Stay the Course
Bears and market volatility don’t scare these die-hard Vanguard investors.
-
I-Bond Rate Is 4.30% for Next Six Months
Investing for Income I-Bonds issued May 1 to October 31 will have a rate of 4.30%.
-
What Are I-Bonds?
savings bonds Inflation has made Series I savings bonds enormously popular with risk-averse investors. So how do they work?
-
This New Sustainable ETF’s Pitch? Give Back Profits.
investing Newday’s ETF partners with UNICEF and other groups.
-
As the Market Falls, New Retirees Need a Plan
retirement If you’re in the early stages of your retirement, you’re likely in a rough spot watching your portfolio shrink. We have some strategies to make the best of things.
