Top 6 Best Diversified Emerging Markets Stock Mutual Funds 2012

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Investors should invest in emerging markets sector especially investing in mutual fund. There are emerging markets stock and bond. The best emerging markets stock mutual funds include Oppenheimer Developing Markets A, Virtus Emerging Markets Opportunities A, etc.
Best Div. Emerging Markets Fund

Emerging Markets Stock Funds

Although investing in mutual fund is common, you can also choose other investment vehicles such as individual stock or bonds, exchange traded funds (ETFs), and Closed End Funds (CEFs). Emerging markets countries are Brazil, India, China, Russia, South Africa, Indonesia, etc. As noted early, this article will focus on the best emerging markets stock mutual funds.

According to many top fund managers, the developing countries or emerging market countries offer the best growth prospects among major stock categories over many years. For the past 3 years (2009 - 2011), the emerging market stock mutual funds have a strong performance so far. Investor shouldn't expect further gains over the next year or so. Having a diversified portfolio may help investor to reduce risk and achieve better return.

Best Emerging Markets Funds

The following best emerging markets stock mutual funds list has been compiled by sorting through its performance for the past 5 years. As part of international stock fund, these emerging markets equity funds are also rated among the best in their category. I have provided each of these top mutual fund review such as initial investment requirement, fund manager, its performance, sales load, expense ratio,  risk, top sectors, rating, top holdings, etc.

Top 6 Diversified Emerging Markets Stock Mutual Funds of 2012 are:
  1. Oppenheimer Developing Markets A (ODMAX)
  2. Virtus Emerging Markets Opportunities A (HEMZX)
  3. Wells Fargo Advantage Emerging Markets Equity A (EMGAX)
  4. DFA Emerging Markets Small Cap I (DEMSX)
  5. Aberdeen Emerging Markets A (GEGAX)
  6. DFA Emerging Markets Core Equity I (DFCEX)
Updated on 3/8/2012

previous: top performing emerging markets stock mutual fund

1. Oppenheimer Developing Markets A (ODMAX)

The Oppenheimer Developing Markets fund objective is to provide capital appreciation aggressively. This emerging markets stock mutual fund mainly invests in common stocks of issuers in emerging and developing markets throughout the world. This stock fund may invest <80% of total assets in equity securities of high growth companies of >3 developing markets.

Oppenheimer Developing Markets
This mutual fund has 5-stars rating from Morningstar. It also has Silver rating from the analysts. The fund total net assets are $22.51 billion. The fund has returned -5.93% over the past 1 year, 32.93% over the past 3 year, and 7.71% over the past 5 year.

This best diversified emerging markets mutual fund has an annual expense ratio of 1.30%. Justin Leverenz is the current fund manager. He has been the fund since 2007. The maximum sales charge is 5.75%.The 10-year annualized return is 18.14%. The other classes of this fund are: Class A with load waived (ODMAX.LW), Class B (ODVBX), Class C (ODVCX), Class I (ODVIX), Class N (ODVNX), and Class Y (ODVYX).

As of January 2012, the top 5 stocks in its holdings are Infosys Ltd (3.9%), America Movil SAB de CV ((3.7%), NHN Corp (3.1%), Fomento Economico Mexicano (2.3%) and BM&F BOVESPA SA (2.1%).

2. Virtus Emerging Markets Opportunities A (HEMZX)

The Virtus Emerging Markets Opportunities fund seeks capital appreciation. This emerging markets stock fund offers investors exposure to emerging economies through well-established companies. Typically, this fund invests most of its assets (>80%) in equity securities or equity-linked instruments of issuers located in emerging markets countries. It may invest in any capitalization of companies.

The current lead manager of this stock fund is Rajiv Jain. This HEMZX fund has a dividend yield of 0.49%. The most recent dividend distribution was in December 2011 ($0.03). The minimum initial investment for the brokerage account is $2.500.

The top sectors of this best fund as of December 2011 are Consumer Staples (43.86%), Financials (17.49%), Information Technology (10.84%), Utilities (7.33%) and Consumer Discretionary (7.31%).

3. Wells Fargo Advantage Emerging Markets Equity A (EMGAX)

Wells Fargo Advantage Emerg Mkts Eq
The investment objective of Wells Fargo Advantage Emerging Markets Equity fund is to provide long-term capital appreciation. This mutual fund invests majority of net assets (>80%) in emerging market equity securities included in the MSCI Emerging Markets Index and countries with low- to middle-income economies according to the International Bank for Reconstruction and Development. It may use futures, options or swap agreements, and derivatives, to manage risk or to enhance return.

This emerging markets stock mutual fund was first introduced to public in September 1994. The total net assets of this fund are $2.54 billion. The annual holdings turnover of this fund as of February 13, 2012 is 5.0%. This fund is currently managed by Yi (Jerry) Zhang. You can also find the other classes of this fund such as Class A with load waived (EMGAX.LW), Class B (EMGBX), Class C (EMGCX), Class I (EMGNX), and admiral class (EMGYX).

The fund has recorded 12 years of positive return within 17 years in the market. The 3-year annualized return is 26.84%. It has YTD return of 9.50%.

4. DFA Emerging Markets Small Cap I (DEMSX)

The DFA Emerging Markets Small Cap fund seeks long-term capital appreciation. This international stock mutual fund uses its asset to buy the companies in the Emerging Markets Small Cap Series. It may invest in frontier markets and other Approved Market securities of small companies.

This Dimensional Fund Advisors fund has YTD return of 11.27%. The fund has 12-month dividend yield of 2.17%. Morningstar gave this fund 4-star rating. This DFA mutual fund is available for purchase through 25 brokerages. The annual expense ratio is 0.79%.

The top holdings as of January 2012 are Arca Continental SAB (0.86%), Lojas Renner (0.44%), Spar Group Ltd (0.42%), Tongaat Hulett Ltd (0.39%) and Cia Hering (0.39%).

5. Aberdeen Emerging Markets A (GEGAX)

Aberdeen Emerging Markets
The Aberdeen Emerging Markets fund seeks long term capital growth. This emerging markets stock fund utilizes most of its net assets (>80%) to purchase equity securities issued by companies that are located in developing market countries. It may invest in common stock, preferred stock, securities convertible, foreign investment funds or trusts and depository receipts.

Joanne Irvine is the current fund manager of this fund. The minimum initial purchase of this fund is $1.000. This applies for either brokerage or retirement account. The 12b1 fee is 0.25%. The maximum sales charge is 5.75%.

The top asset allocation is Non U.S. Stocks (92.24%), Other (4.00%) and Cash (3.76%). The top sectors are Financial Services, Energy, Consumer Cyclical, Basic Materials and Consumer Defensive.

6. DFA Emerging Markets Core Equity I (DFCEX)

The DFA Emerging Markets Core Equity I fund purchases a broad and diverse group of securities associated with emerging markets, including frontier markets. This mutual fund has annual expense ratio of 0.67%. This figure is lower than the average in the Diversified Emerging Markets (1.64%).  The total net assets of this fund are $6.61 billion. The fund has 055% management fee.

The 5-year annualized return of this mutual fund is 6.13%. As of December 2011, the top country allocations are Brazil (15.04%), China (14.96%), South Korea (14.91%), Taiwan (12.13%) and South Africa (8.63%).

Disclosure: No Position

Top Funds Performance

NoNameTicker1 Year Return %3 Year Return %5 Year Return %10 Year Return %Expense Ratio
1Oppenheimer Developing Markets AODMAX-5.71%30.26%7.64%18.14%1.30%
2Virtus Emerging Markets Opportunities AHEMZX10.39%27.09%7.39%14.98%1.67%
3Wells Fargo Advantage Emerg Mkts Eq AEMGAX-3.30%28.64%6.75%16.63%1.82%
4DFA Emerging Markets Small Cap IDEMSX-10.09%34.36%6.64%17.48%0.78%
5Aberdeen Emerging Markets AGEGAX2.09%32.25%6.35%15.82%1.78%
6DFA Emerging Markets Core Equity IDFCEX-8.41%30.26%6.13%-0.65%
7Invesco Developing Markets AGTDDX0.39%31.62%5.88%15.98%1.53%
8DFA Emerging Markets Value IDFEVX-12.57%29.76%5.60%18.34%0.60%
9Lazard Emerging Markets Equity OpenLZOEX-3.31%27.80%5.57%16.51%1.49%
10DFA Emerging Markets IDFEMX-6.10%27.48%5.44%14.75%0.60%

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