The iShares Core MSCI Emerging Markets ETF (IEMG) is a high-yield ETF. iShares Core MSCI Emerging Markets shares are currently trading at an average uptick of ~0.2% per day. A weak U.S. Dollar will deal a major blow to emerging markets, and the U.S. dollar is likely to continue its moderate weakening cycle. Continuation of this trend in 2024 is imminent, and quantitative tightening will likely be canceled again. It’s a well known fact that emerging Markets ETFs are heavily weighted in Chinese stocks. For example, the iShares MSCI Emerging Markets ETF (EEM) has an exposure to China of 25%, which is not surprising given China's bear market in recent years.

On Monday, February 5, trading, shares of the iShares Core MSCI Emerging Markets ETF hit a 200-day high of $48.91, with shares changing hands at $48.94 a share.

IEMG's overall P/E ratio is around 12.5. This compares attractively to the S&P 500's P/E of 22, with plenty of room for multiple expansions if interest rates decline. Indeed, interest rate cutting cycles have already begun in many emerging markets as central bank policies tend to tilt the G7 countries toward China, and given the bear market that has developed there in recent years, this country's more profound monetary actions seem likely.