To The Moon

🌟🌟🌟Emerging markets offer significant investment potential due to their growth and global  integration.  $Vanguard FTSE Emerging Markets ETF(VWO)$ invests in stocks of companies located in Emerging Markets around the world such as China, Brazil, Taiwan and South Africa.  VWO's goal is to closely track the return of the FTSE Emerging Markets All Cap China A Inclusion Index. 

In just 1 ETF, I gain access to 5917 stocks in Emerging Markets globally.  The Top 10 holdings include Taiwan Semiconductor Manufacturing, Tencent Holdings, Alibaba Group, Reliance Industries, HDFC Bank, PDD, Infosys, Meituan Dianping, Hon Hai Precision Industry and China Construction Bank. 

The Top 10 weightage is 23%.  Total number of holdings is 5917.  The expense ratio is 0.08%, the lowest among competing Emerging Markets ETFs.  Dividends are paid every 3 months.  The current dividend yield is 3.12%.  VWO goes ex dividend on September 18 2024.

$Taiwan Semiconductor Manufacturing(TSM)$  is Asia's most valuable company with a market capitalisation of USD 776.60 billion.  TSMC produces an estimated 90% of the world's super advanced semiconductor chips which are used to power everything from smartphones to AI applications. 

TSMC's share price has been on a tear.  It is up 69% year todate and 81% in the past year.  Most of the leading fabless semiconductor companies such as Nvidia, AMD, Broadcom, ARM and Qualcomm are customers of TSMC. 

$TENCENT(00700)$  is among the largest social media, venture capital and investment corporations in the world.  Its services include social networks such as  WeChat, music, web portals, ECommerce, mobile games, Internet services, payment systems, smartphones and multiplayer online games. 

On August 14, Tencent's Q2 24 quarterly profit jumped 82% and beat top and bottom line estimates.  This is due to its growth in its key gaming unit division.  Its online advertising business brought in RMB 29.9 billion in revenue in Q2 24, up 19 % year on year which also helped its overall numbers.

Tencent's share price is up 28% year todate and in 2023, it has risen 17%.

$Alibaba(09988)$  is one of the world 's leading wholesale online market places.  Alibaba' s primary focus is about facilitating online buying and selling through its various ECommerce platforms as well as providing cloud computing and digital payment services. 

Due to competition from JD.com and PDD, its share price has been volatile.   Alibaba is currently up 9% year todate but has dropped 9.7% in 2023.  Fortunately there are green shoots of recovery as Alibaba is channeling its focus on areas like lower prices and better user experience by leveraging AI and its massive supply chain resources. 

Reliance Industries is India's largest public company by market capitalisation and revenue.  Its businesses include energy, petrochemicals, natural gas, retail, entertainment, telecommunications, mass media and textiles.  Reliance's Chairman is Mukesh Ambani who is the richest man in Asia. 

HDFC Bank is one of India's largest banks.  It offers a full range of banking services which include wholesale banking, retail banking, treasury, auto loans, personal loans, housing loans, and credit cards. 

These are some of the best holding companies within VWO.  The Top 3 countries covered by VWO are India, China and Taiwan.  These are followed by Brazil, Saudi Arabia,   South Africa, Mexico, Malaysia, Thailand and many more. 

Performance wise VWO is up 10% year todate and in 2023, VWO has risen 9%.

India and China have the world's largest population with India at 1.45 billion people  while China has 1.41 billion.  With VWO, I can tap into these fast growing economies with just 1 trade. 

I have invested in VWO since 2023 because I believe it is important to have diversification in my portfolio.  While the US market has been hitting record highs year todate, the Emerging markets have greater potential for high growth. 

I like VWO ETF as it is low cost and offers international  diversification in my portfolio.  In the future, the most growth and the highest returning stocks are to be found in Emerging Markets and with VWO, I have it all. 

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