My First Dip – iShares MSCI Emerging Markets (IEM) ETF

In my introduction to Exchange Traded Fund (ETF) entry, I wrote that I plan to allocate some money towards Exchange Traded Funds (ETFs). Well, I just did.

I took a position in an ETF last week.

The process was rather simple. I logged onto my online trading platform, placed an order with my broker, wait for my order to be executed, and voilà!

I only took a small position in that fund with brokerage fees totalled $19.95. If I decide to exit in the future, it’ll be another $19.95. All in all, to enter and exit my ETF position, it’ll cost me around 1.97% of my total investment (compare that to 5% charged by Malaysia’s mutual funds). By the way, my broker only charges $19.95 to buy and $19.95 to sell for any amount up to $25,000 and 0.12% for trades above $25,000. So, do check with your broker about their brokerage fees and calculate your own cost.

The name of the ETF is iShares MSCI Emerging Markets (ASX Code: IEM). It was designed to track the MSCI Emerging Markets Index. I am constantly on the lookout for exposure to developing markets out there, so this fund fits into my portfolio perfectly.

The annual management expenses and fees as at 01/01/08 is 0.74%.

The fund’s average annualised performance since inception (inception date 07/04/2003) stands at 28.05% p.a.. Morningstar gives this fund 3 stars.

Anybody out there who have invested in ETFs or are about to invest in ETFs, do share your experience here.

Now enjoy a song by Sara Bareilles entitled “Love Song”.


Cheers folks.


Disclaimer: This article is not a specific nor general advice on managing or investing your money. This article does not constitute a recommendation nor does it take into account your investment objectives, financial situation nor particular needs.

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