$EIMI (-1,42%) vs. $EMXC (-2%) + $ICHN (-4,22%) ? ( #anfänger )
Hello dear community :)
About me:
Since a few months, I (27) also count to the illustrious circle of stock owners and follow with huge interest the many instructive discussions on getquin. Thank you for the many insights!
About my PF:
Besides very small short term investments in single stocks (to satisfy my gambling needs) I invest monthly in ETFs. Here, I would also like to track emerging markets to a certain extent (approx. 20-25%). However, I have been put off by the high proportion of Chinese stocks in mainstream EM ETFs. Personally, I am just not comfortable with around 30% China in the emerging market portion. I would actually like to have less China allocation, manage the allocation flexibly in case the situation improves at some point and also not have to sell the entire EM ETF in case China goes completely belly up....
My (possibly naive) idea was to split off the China portion to be able to manage shares and risks more flexibly. So I currently invest 85% of my EM volume in the $EMXC (EM Ex China)
and 15% in the $ICHN (-4,22%) (MSCI China). I am aware of many of the "downsides" such as rebalancing expense, slightly higher TER, Taiwan portion remaining in the Ex China ETF. My following question is more about my general ETF understanding.
About my problem/question:
Actually, I assumed that a blend of 70% MSCI EM Ex-China + 30% MSCI China should perform very similar to a common MSCI EM (which usually include 30% China). This is what my splitting logic is based on. However, as you can probably guess now, this is not the case ;-) Especially the $EIMI (-1,42%) seems to perform differently than this mix now and also in the last years.
Where is the flaw in my logic?
And what are your thoughts and recommendations on flexibly managing China risk in the ETF portfolio?
Would be extremely happy to receive explanations! :)
