EWM offers investors exposure to the emerging market of the Malaysia by investing in securities of companies that are based in the nation. Since many of the large caps in this fund are likely to not be found in other EM funds, EWM could make for an interesting satellite holding but is probably not appropriate as a core holding in a diversified portfolio. For investors seeking greater exposure to the Malaysian market, EWM is one of the only ‘pure play’ option available.
Malaysia is part of the EAGLEs (emerging and growth-leading economies), whose contribution to world economic growth in the next ten years is expected to larger than the average of the G6 economies (G7 excluding the US).