Russian companies, fueled by the rapid growth and profitiability of its energy sector, have risen the ranks of the top ten companies in the emerging market index and the exchange-traded funds that track it such as (EEM).
The top ten holdings in this ETF basket in order of weighting are:
Gazprom (Russia)
Samsung Electronics (South Korea)
Posco (South Korea)
Taiwan Semiconductor (Taiwan)
Kookmin Bank (South Korea)
Silicon Precision (Taiwan)
Lukoil Holdings (Russia)
Chungwa Telecom (Taiwan)
China Mobile (Hong Kong)
United Microelectronics (Taiwan)
It may be surprising to many investors to see Taiwan with four out of the ten top holdings. China is also making progress and in the MSCI World index has pulled even with Taiwan and has also matched Hong Kong in terms of country weighting.
PetroChina announced today it would launch one of the biggest ever initial public offerings on the mainland market, becoming the latest large state-owned company to seek a Shanghai listing. The oil and gas group said it would issue up to 4bn shares in Shanghai which at Tuesday share price in Hong Kong, where it is already listed, would raise around $5.7bn
By Carl Delfeld of the Chartwell ETF Advisor
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