Daily Screen: Leading Emerging Markets Funds

Today's Daily Screen covers emerging markets funds, the kind of aggressive offerings that focus on stocks of companies based in developing markets, primarily in Latin America and Asia.

As usual, we've screened for funds that beat the category's average return over the last one- and three-year periods, according to Morningstar. The top 10 are ranked by one-year returns in the first table.

The second table lists the 10 most popular stocks among the funds on the top-10 list. It was compiled by creating an equally weighted portfolio of the 10 funds and screening for their 10 biggest holdings. Even though these funds have a broad range of companies and countries to choose from, they have many holdings in common and several are traded in the U.S. through American depositary receipts, or ADRs.

Leading Emerging Markets Funds These 10 have the highest one-year return among such funds that beat their average peer over the last one- and three-year periods.
Fund	1-Year Return	3-Year Annualized Return
(ODMAX Quote)Oppenheimer Developing Markets	40.7%	9%
(ETEMX Quote)Eaton Vance Emerging Markets	26.6	-4.3
(SDMGX Quote)Sit Developing Markets Growth	24.2	-1.9
(PEMFX Quote)Pioneer Emerging Markets	23.0	-3.1
(PRMSX Quote)T. Rowe Price Emerging Markets	20.5	0.8
(MSRAX Quote)Van Kampen Emerging Markets	15.5	-3.5
(LMEMX Quote)Legg Mason Emerging Markets	14.3	-1.2
(PRIAX Quote)Principal International Emerging Markets	14.0	-1.0
(FEMGX Quote)Fremont Emerging Markets	11.2	-6.7
(NEMAX Quote)Nations Emerging Markets	10.5	1.7
Avg. Emerging Markets Fund	6.9	-7.1
S&P 500	11.9	16.5
Source: Morningstar. Performance through Sept. 26.

Under the Hood The stocks with the biggest weighting in the combined portfolios of the funds listed above.
Stock	Weighting in Winning Funds	Number of Funds That Own the Stock
Samsung Electronics	4.0%	9
Taiwan Semiconductor(TSM Quote)	2.2	8
China Mobile HK(CHL Quote)	1.7	7
Grupo Televisa(TV Quote)	1.5	9
Telefonos de Mexico(TMX Quote)	1.3	4
Tele Norte Leste(TNE Quote)	1.2	9
Korea Telecom(KTC Quote)	1.1	9
SK Telecom(SKM Quote)	1.1	6
Hon Hai Precision Industry	1.1	6
Grupo Financiero Banamex Accival	1.0	4
Source: Morningstar. Holdings as of most recent portfolio reports.