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Discussion Starter · #1 ·
Claymore Investments has just unveiled its new Broad Emerging Markets ETF, to go with its pre-existing BRIC ETF, which of course was focused just on Brazil, Russia, India and China. The fee is higher than the equivalent Vanguard fund but it's hedged back into the Canadian dollar.

I know Emerging Markets got hammered more than most regions in the last 6 months but my impression is it's a region that may also recover more robustly if and when a recovery is enduring. The long-term growth story is well known but perhaps overly hyped?

Details in my blog today:
http://network.nationalpost.com/np/...ymore-unveils-broad-emerging-markets-etf.aspx
 

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Discussion Starter · #3 ·
If you've decided you DO want that market allocation to EM, the question you have to pose is whether the extra cost of the Claymore version vis a vis Vanguard is worth it in order to get the currency hedged back into C$. Usually, Claymore takes the position that it hedges back single-country funds like Japan or the U.S. The argument used to be that broad-based ETFs covering EAFE or now Emerging Markets are diversifying the currencies just by virtue of being in so many different countries.

So from that perspective, I find a currency hedged broad Emerging Markets ETF to be a bit strange. And not all that cheap if you buy the Advisor version.
 
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