This Emerging Markets ETF Beat the S&P 500 for 16 Years. Could It Happen Again?

The article analyzes the iShares MSCI Emerging Markets ETF (EEM), which has a history of outperforming the S&P 500, including a 16-year stretch from its 2003 inception. The fund holds over 1,100 stocks, heavily concentrated in Taiwan (27.8%), China (20.5%), South Korea (19.9%), India (11.6%), and Brazil (4.1%). Its top holdings include AI and semiconductor giants like TSMC, Samsung, SK Hynix, Tencent, and Alibaba. The ETF delivered 22.9% annualized returns over three years and 45.06% in the past year, beating the S&P 500. However, the article notes risks such as geopolitical instability (e.g., losses during the Iran war) and currency risk from a strong U.S. dollar. It questions whether the fund can sustain its outperformance.