BKF vs XCEM

BKFDiShares MSCI BIC ETF

XCEMAColumbia EM Core ex-China ETF

In short

BKF A survivor of the BRIC trade. Launched in 2007, BKF now packs just Brazil, India and China into one ticker: a concentrated take on three big emerging economies instead of the whole developing world.

XCEM The original ex-China emerging markets fund. Columbia launched XCEM in 2015, back when carving China out of an EM sleeve was a fringe idea rather than a crowded shelf. Roughly 150 EM stocks, no China, 0.16% a year.

Stated mandate

BKF The fund seeks to track an index composed of Brazilian, Indian, and Chinese equities and offers targeted exposure to those three major economies.

XCEM The fund seeks investment results that correspond to the performance of the EGAI Emerging Markets ex-China Index before fees and expenses. It generally invests at least 80% of net assets in index companies and seeks to replicate the index.

Why people hold it

• BKF Three economies, one ticker. The MSCI BIC index keeps it to Brazil, India and China, with no Taiwan, Korea or Mexico in the mix.ishares.com
• Roughly 700 stocks across those three markets, so it reads as a broad slice of each country rather than a short list of mega-caps.
• Trading since 2007 under the iShares roof, it has tracked its index through several full emerging-market cycles.

• XCEM Launched in 2015 as the first broad emerging markets ETF built to leave China out, and it has since grown into a billion-dollar-plus fund.morningstar.com
• 0.16% a year, well under the typical fund in its emerging markets cohort, for a portfolio of about 150 stocks.
• Plain mandate, closely followed: at least 80% of net assets in index companies, replicated rather than approximated, with tracking that has stayed tight.
• One of the strongest implementations in its emerging markets peer group, and liquid enough that getting in and out is rarely the hard part.

Worth knowing

• BKF The 0.72% expense ratio sits above the typical emerging-markets fund, and broad EM rivals like BKEM (0.11%) and VEXC (0.07%) charge a fraction of that.
• It is a small fund that trades thinly, so spreads can run wider than at the giant EM index funds.
• Three countries means concentration. A rough patch in China or Brazil has no 20-country EM lineup around it to soften the blow.

• XCEM No China means no Tencent, no Alibaba, no A-shares. If that exposure belongs in the portfolio, it has to come from somewhere else.
• Emerging market stocks swing hard and currency moves add to the ride. This is one of the higher-volatility corners of equity investing.
• Cheap, not cheapest: VEXC runs the same ex-China EM idea at 0.07%. XCEM's edge is a decade of history, not the lowest fee on the shelf.

Full BKF profile⁠

Full XCEM profile⁠