FP_030518_cover
Emerging markets stocks have been on a tear the past year, returning 24.8% as measured by the equities-based Vanguard FTSE Emerging Markets ETF. The 20 best-performing funds in this class averaged 33% over the period; the top fund surged more than 40%. The three-year average of these 20 funds was much more-down-to earth, but still high, at 10.3%.

Beyond ever-present concerns about the party ending abruptly, more recently, many advisors and clients fret that President Trump’s call for tariffs on steel and aluminum imports could lead to a trade war that will will depress global investing.

Indeed, the Vanguard FTSE EM ETF is up 3.3% year-to-date, but incurred a loss of 3.4% for the past week. Shorter timeframes are usually less meaningful, but in this case, could reflect a turning point in emerging markets.

The president’s threat to initiate a trade war could rein in, or even reverse, global growth, says Mark Hamrick, a senior economic analyst for Bankrate. It’s hard to construct a scenario that’s positive for the investment markets unless the threats evaporate and nothing actually happens, he adds.

Taking a longer view, Hamrick notes that emerging markets have had a good run in recent years after severe pullbacks a decade ago.

Scroll through to see the 20 best-performing emerging markets equity funds for the past year. There is also data on each fund’s three-year returns, expense ratios and total assets. Funds with less than $100 million in assets were excluded. All data from Morningstar Direct.
FP_030518_20

20. Fidelity SAI Emerging Markets Index (FERGX)

1-Yr. Return: 29.80%
3-Yr. Return: N/A
Expense Ratio: 0.08%
Total Assets (millions): $3,654.63
FP_030518_19

19. Templeton Developing Markets A (TEDMX)

1-Yr. Return: 29.86%
3-Yr. Return: 9.02%
Expense Ratio: 1.39%
Total Assets (millions): $1,772.04
FP_030518_18

18. Deutsche Emerging Markets Equity S (SEMGX)

1-Yr. Return: 30.01%
3-Yr. Return: 9.63%
Expense Ratio: 1.00%
Total Assets (millions): $114.93
FP_030518_17

17. Strategic Advisers Emerging Markets (FSAMX)

1-Yr. Return: 30.12%
3-Yr. Return: 8.85%
Expense Ratio: 1.07%
Total Assets (millions): $5,070.61
FP_030518_16

16. JPMorgan Emerging Economies R5 (JEERX)

1-Yr. Return: 30.44%
3-Yr. Return: 9.06%
Expense Ratio: 0.79%
Total Assets (millions): $2,230.88
FP_030518_15

15. GuideMark Emerging Markets Service (GMLVX)

1-Yr. Return: 30.48%
3-Yr. Return: 11.02%
Expense Ratio: 1.70%
Total Assets (millions): $109.12
FP_030518_14

14. City National Rochdale Emerg Mkts N (RIMIX)

1-Yr. Return: 30.85%
3-Yr. Return: 10.66%
Expense Ratio: 1.62%
Total Assets (millions): $1,762.26
FP_030518_13

13. MFS Emerging Markets Equity A (MEMAX)

1-Yr. Return: 31.35%
3-Yr. Return: 9.47%
Expense Ratio: 1.50%
Total Assets (millions): $1,476.23
FP_030518_12

12. Consulting Group Emerging Markets Eq (TEMUX)

1-Yr. Return: 32.25%
3-Yr. Return: 10.89%
Expense Ratio: 0.86%
Total Assets (millions): $522.68
FP_030518_11

11. Hartford Schroders Emerging Mkts Eq I (SEMNX)

1-Yr. Return: 32.83%
3-Yr. Return: 10.17%
Expense Ratio: 1.27%
Total Assets (millions): $3,077.27
FP_030518_10

10. Ivy Emerging Markets Equity A (IPOAX)

1-Yr. Return: 32.97%
3-Yr. Return: 11.75%
Expense Ratio: 1.58%
Total Assets (millions): $2,637.32
FP_030518_09

9. VALIC Company I Emerg Economies (VCGEX)

1-Yr. Return: 33.02%
3-Yr. Return: 10.39%
Expense Ratio: 0.94%
Total Assets (millions): $891.67
FP_030518_08

8. Principal Intl Emerging Markets R5 (PEPSX)

1-Yr. Return: 33.82%
3-Yr. Return: 9.36%
Expense Ratio: 1.50%
Total Assets (millions): $1,020.61
FP_030518_07

7. VY JPMorgan Emerging Markets Equity S (IJPIX)

1-Yr. Return: 34.46%
3-Yr. Return: 9.75%
Expense Ratio: 1.50%
Total Assets (millions): $610.21
FP_030518_06

6. Victory Sophus Emerging Markets A (GBEMX)

1-Yr. Return: 35.54%
3-Yr. Return: 11.50%
Expense Ratio: 1.34%
Total Assets (millions): $277.12
FP_030518_05

5. T. Rowe Price Emerging Markets Stock (PRMSX)

1-Yr. Return: 35.95%
3-Yr. Return: 11.92%
Expense Ratio: 1.26%
Total Assets (millions): $12,161.31
FP_030518_04

4. BNY Mellon Emerging Markets M (MEMKX)

1-Yr. Return: 36.14%
3-Yr. Return: 9.91%
Expense Ratio: 1.42%
Total Assets (millions): $1,063.15
FP_030518_03

3. Fidelity Emerging Markets (FEMKX)

1-Yr. Return: 37.30%
3-Yr. Return: 10.05%
Expense Ratio: 0.97%
Total Assets (millions): $5,540.47
FP_030518_02

2. American Century Emerging Markets Inv (TWMIX)

1-Yr. Return: 37.49%
3-Yr. Return: 12.18%
Expense Ratio: 1.29%
Total Assets (millions): $2,309.48
FP_030518_01

1. VanEck Emerging Markets A (GBFAX)

1-Yr. Return: 42.66%
3-Yr. Return: 8.97%
Expense Ratio: 1.53%
Total Assets (millions): $2,200.48
MORE FROM FINANCIAL PLANNING