5 Best Index Funds to Diversify Your Portfolio

1. Schwab Emerging Markets ETF (NYSEARCA:SCHE)

Yield (TTM): 2.78%

The Schwab Emerging Markets Equity ETF (NYSEARCA:SCHE) invests in growth and value stocks of mid-cap and large-cap companies in emerging markets. The fund tracks the performance of the FTSE Emerging Index and employs a representative sampling technique. The fund has a top 10 holdings concentration of 21.64% and has investments across the financial, industrial, technology, healthcare, and energy segments, among others. The fund has an expense ratio of 0.11% and a trailing twelve-month yield of 2.78%.

One of the top holdings of the Schwab Emerging Markets Equity ETF (NYSEARCA:SCHE) is the leading semiconductor manufacturer and supplier of Apple, Inc. (NASDAQ:AAPL), Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM). On July 14, Susquehanna analyst Mehdi Hosseini revised his price target on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) to $88 from $90 and reiterated a ‘Neutral’ rating on the shares.

In the second quarter of 2022, Fisher Asset Management raised its stake in Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) by 1%, ending the quarter with $2.15 billion in TSM shares. The investment covers 1.52% of Ken Fisher’s 13F portfolio.

Here is what The Mercator International Opportunity fund had to say about Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its second-quarter 2022 investor letter:

“Another example of this buyers’ strike is Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)  (1.81%), down 40% from its high and trading at less than 15 times forward earnings. When TSM announced better-than-expected earnings growth of 67% in the second quarter with no slowdown in sight, the stock barely gained a few percentage points. No matter how good the news, buyers are not showing up. Yet.”

You can also take a look at the 10 Best Index Funds to Invest In 2022 and the 10 Best Metaverse ETFs To Buy.

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