Update: All ETFs aren't created Equal..................
In 2011 when I first wrote about this idea 5 full years of data weren't yet available on all the components. Here's the data as of MorningStar's review today:
Emerging Markets ETFs
Category EEM DEM VWO PXH
52 Week Hi/Low Ratio 1.24 1.21 1.22 1.27
Annual Expense Ratio 0.69% 0.63% 0.20% 0.49%
Dividend (TTM) 1.69% 3.31% 2.19% 2.08%
12 Month Price Performance +1.32% -0.04% +1.68% -3.12%
Up/Down Capture Information
Category EEM DEM VWO PXH E.M. Category
Upside 1 Year Capture 74.79 60.15 76.36 75.92 77.93
Downside 1 Year 110.39 83.05 109.25 135.76 103.99
Up/Down Ratio 0.68 0.72 0.69 0.56 0.75
------------------------------------------------------------------
Upside 3 Year Capture 93.73 85.44 94.09 94.49 86.21
Downside 3 Year 92.93 70.59 90.73 102.73 82.36
Up/Down Ratio 1.01 1.21 1.04 0.92 1.05
------------------------------------------------------------------
Upside 5 Year Capture 118.94 107.31 117.92 123.94 109.70
Downside 5 Year 110.91 84.03 110.20 115.26 102.42
Up/Down Ratio 1.07 1.27 1.07 1.08 1.07
------------------------------------------------------------------
Summary:
In 2011
ETF Rank 52 Week Hi/Low Annual Expense Dividend Performance 3 Year Up/Down Ratio
EEM 2 3 3 1 3
DEM 4 2 1 3 1
VWO 3 1 4 2 2
PXH 1 4 2 4 4
--------------------------------------------------------------------------------------
Thru 2012
EEM 2 4 4 2 3
DEM 4 3 1 3 1
VWO 3 1 3 1 2
PXH 1 2 2 4 4
By "score" the lowest should be the "best" overall. That puts them in 2011 as 1-DEM, 2-EEM &VWO (tie), 3-PXH. Today they are ranked 1-VWO, 2-DEM, 3-PXH, 4-EEM.
I like to look at 1)Price appreciation over time, 2) Dividend capture over time and 3) Profitable Volatility Capture over time. It appears that price amplitude is about the same for all four funds, so for volatility capture they're all about equal. On dividend capture, DEM stands out. On a 5 year Total Return basis, DEM wins again with the best price appreciation.
The Up/Down capture ratio at one, three and five years shows one clear standout with the other three trailing. This is what has helped the overall price appreciation of DEM. Capturing a better upside and lesser downside put them in the overall lead.
Interesting stuff! Comments?
Best regards,
