Q: Can you please compare the following ETFs: ZEM vs VEE. In the past you had commented that ZEM may be more tax efficient because most stocks are held direct. Which ETF has the most exposure to China?
Thanks!
Thanks!
5i Research Answer:
VEE charges an MER of 0.25%, has AUM of $1.59B and a 12-month yield of 2.64%. VEE has 27% exposure to China. VEE seeks to track the performance of the FTSE Emerging Markets All Cap China A Inclusion Index. VEE has a net asset value return of +0.77% year-to-date.
ZEM charges an MER of 0.28%, net assets of $1.29B, and an annualized distribution yield of 2.77%. ZEM has 26% exposure to China. ZEM seeks to track the performance of the MSCI Emerging Markets Index. ZEM has a net asset value return of +0.46% year-to-date.
ZEM is a bit more tax efficient, as most securities are held directly. It does show one other ETF in its top 10 holdings.