It tracks the MSCI Emerging Markets Min Vol Index. Starting from the broad emerging markets index, it applies volatility constraints to select and weight stocks so that overall portfolio volatility is minimized.

It suits medium- to long-term investors who want emerging market equity exposure but wish to reduce price volatility risk compared with the standard emerging markets index.

It is a passive (index-tracking) ETF launched by BlackRock (iShares) in 2011.

Using the Barra multi-factor model, it adjusts holdings and weights across emerging market large- and mid-cap stocks so that the portfolio's overall absolute volatility is minimized. Minimum and maximum weight constraints by country and sector are applied, so the portfolio is designed to avoid excessive concentration in any single country or sector.

• Designed for lower portfolio volatility than the broad emerging markets index
• Diversified across 26 emerging countries, with country and sector weight constraints to prevent concentration

Assets under management (AUM) stand at $3.5B, and the expense ratio is 0.25% per year.

It applies the same minimum volatility approach as global funds but focuses only on emerging markets, so its country exposure differs from global minimum volatility ETFs that include developed markets.

Emerging market assets have been highly sensitive to a strong US dollar, the interest rate environment, and uncertainty over China's economy. In such environments, minimum volatility strategies tend to reduce drawdowns relative to the standard emerging markets index, but their participation in gains may be limited during emerging market rallies.

When investor sentiment toward emerging markets weakens, money tends to move into defensive minimum volatility products. Conversely, when emerging markets as a whole are strong, capital may concentrate in standard emerging markets index ETFs, which can slow relative inflows.

Its core strength is dampened emerging market volatility, while limited gains in bull markets and currency exposure are the main risks.

You can compare it with EFAV, which uses the same minimum volatility approach but targets international equities including developed markets, ACWV, which covers the whole world including developed markets, and EELV, which pursues a similar low volatility strategy in emerging markets. IDLV focuses on low volatility exposure to developed markets excluding emerging markets, while QLVD is a blended dividend and low volatility strategy for developed markets. If your goal is exposure to the entire emerging market, standard emerging markets index ETFs such as EEM or VWO can also be considered as alternatives.

These are the key items to review before investing in EEMV. It is important to understand in advance the risk factors specific to emerging markets, the characteristics of the minimum volatility strategy, and the cost structure before entering a position.

Political and economic instability across emerging markets, a strong US dollar, and weakness in emerging market currencies are the main risk factors. Even a minimum volatility strategy cannot fully eliminate the macro risks specific to emerging market assets.

It is a suitable choice for investors who want to diversify into emerging market equities while reducing the burden of volatility. If your goal is to maximize returns in an emerging market rally, standard emerging markets index ETFs such as EEM or VWO may be more appropriate.