Emerging market equities have shown strong performance in 2024, with the iShares MSCI Emerging Markets ETF (EEM) rising 5.7% year-to-date, despite persistently high U.S. interest rates.

The EEM boasts a dividend yield of 2.45%, manages assets worth $17.32 billion, and has a net expense ratio of 0.7%.

In comparison, the Vanguard FTSE Emerging Markets ETF (VWO) has a significantly larger asset base of $77.55 billion, a lower expense ratio of 0.08%, and a higher dividend yield of 3.63%.

EEM's largest holding is Taiwan Semiconductor Manufacturing Co. (TSM), which constitutes 9.57% of the fund, with considerable geographical exposure to India (18.9%) and Taiwan (18.6%).

Similarly, VWO's largest holding is also TSM at 8.3%, with the fund having the most exposure to India (23%) and Taiwan (19.7%).

The iShares MSCI South Africa ETF (EZA) has gained traction as the South African Rand strengthens, offering a dividend yield of 3.62% and tracking the MSCI South Africa Index.

EZA's top holding is Naspers Limited, and it has a significant sector exposure to Financials, accounting for 36.5%.

Despite its potential, EZA has lower daily trading volume and market capitalization compared to larger emerging market ETFs like EEM and VWO.

A recent decline in the U.S. dollar against several emerging market currencies, including the South African Rand and Chinese Yuan, suggests a potential shift in global economic dynamics.

As capital flows into emerging markets increase due to the dollar's decline, investors may find new opportunities in this sector.