Overview: The iShares Edge MSCI EM Minimum Volatility UCITS ETF (symbol: EUNZ) is an exchange-traded fund that aims to replicate the performance of an index composed of selected companies from emerging markets. This ETF focuses on companies exhibiting lower volatility characteristics compared to emerging equity markets as a whole, making it an appealing choice for investors looking to minimize fluctuations in their portfolio.
Benefits: One of the main advantages of this ETF is its investment strategy focused on reducing volatility. By selecting companies with lower volatility characteristics, this ETF can provide some protection against market downturns while allowing investors to benefit from exposure to emerging markets, which are often perceived as having high growth potential. Additionally, the diversification offered by a basket of stocks can help reduce company-specific risk.
Risks: Like any equity investment, this ETF carries risks, including the inherent volatility of emerging markets. Although the low volatility approach aims to mitigate these fluctuations, investors should be aware that emerging markets can be influenced by economic, political, and social factors, which can lead to significant price variations. Furthermore, focusing on low-volatility companies may limit return potential in a bull market.
Investor Profile: This ETF is particularly suitable for investors seeking exposure to emerging markets while wishing to limit portfolio volatility. It may be appropriate for cautious investors, those approaching retirement, or those looking to diversify their geographical exposure while minimizing risks associated with market fluctuations.
Total Annual Returns, Including Dividends
The drawdown measures the decline in price from its historical high. It helps assess the fund's downside risk. The calculation includes dividends.
| Volatility | Max drawdown | Sharpe ratio | |
|---|---|---|---|
| 1 year | |||
| 3 years | |||
| 10 years | |||
| Max |