Is WEMG a good ETF?
WEMG is the State Street SPDR S&P Emerging Markets Carbon Aware ETF from State Street. We classify it under EM, Market-Cap, and ESG. With about $28 million in assets it is a relatively small fund (worth checking spreads and liquidity before buying).
On a total-return basis, WEMG has delivered 8.84% a year over 10 years (ranked 58th of 108 ETFs we track), 7.21% a year over 5 years (ranked 97th of 188 ETFs we track), 13.68% a year over 3 years (ranked 78th of 226 ETFs we track), and 11.45% a year over 1 year (ranked 110th of 308 ETFs we track).
The management fee of 0.35% is reasonable. For comparison, similar ETFs average around 0.32%. It pays a high 7.22% yield — generous income, but check it isn't a sign of a narrow or higher-risk portfolio. Bear in mind distributions are taxed each year at your marginal rate, so a high yield is less tax-efficient for higher earners and during the accumulation phase.
Over the past 10 years its volatility has been moderate (annualised standard deviation around 10.6%), meaning the kind of swings you'd expect from a diversified equity fund. Its 10-year Sharpe ratio of 0.65 is reasonable — that's the return it has earned per unit of risk taken (higher is better).
Strengths
- Low-cost: a 0.35% management fee keeps more of the return in your pocket.
- High 7.22% income yield — good for investors who want regular cash flow.
Things to watch
- Pricier than similar ETFs, which average around 0.32%.
- That income is taxed yearly at your marginal rate, so it's less efficient for higher earners.
What WEMG's categories mean for you
How each category this ETF belongs to tends to behave across market cycles.
Emerging markets — developing economies such as China, India, Brazil and Taiwan. High growth potential with materially higher volatility, currency and political risk.
- Market regime
- Often trades at cheaper valuations than developed markets and performs well in global risk-on phases and when the US dollar is weak. Can endure long stretches of underperformance.
- In a portfolio
- A satellite growth allocation for patient investors with a long horizon and tolerance for big swings.
Holdings are weighted by company size, so the largest companies carry the most weight. These funds are cheap, tax-efficient and self-rebalancing.
- Market regime
- Works in almost any regime as a low-maintenance core. The trade-off is concentration — you automatically own more of whatever has already become expensive at the top of a bull market.
- In a portfolio
- The classic buy-and-hold core of most portfolios. Well suited to long-term, hands-off investing.
Screens out, or tilts away from, companies on environmental, social and governance criteria — letting you align your money with your values.
- Market regime
- Performance broadly tracks the wider market, but can drift when excluded sectors (e.g. energy, mining, weapons, tobacco) have a strong or weak run. Fees are usually a touch higher.
- In a portfolio
- Suitable as a core or near-core holding for values-driven investors; just understand which sectors are excluded and why returns may diverge from the broad index.
General information only, generated from the fund's published data — not personal financial advice. Past performance is not a reliable indicator of future returns. Consider your own circumstances or seek licensed advice before investing.