Risk aversion with exchange traded funds (ETFs) appears to be oh-so-stylish right now.

That’s what Michael Kahn for Barron’s is noticing. Investors are pushing aside anything that isn’t blue chip, regardless of its asset class. This has wreaked havoc in Asia.

And while Asia might not look so hot in the short-term, the long-term growth potential in China, India and other emerging markets is still there. But, Kahn says, things might get worse before they begin to get better.

He cautions that the current market conditions are not the time to try and pick bottoms, but instead, look at the relative performance. Although it has seen big price declines, the Shanghai index is still beating the United States. This is also true of the iShares MSCI Emerging Markets Index (EEM), as shown in the chart below.

When this market turmoil nears its end and you’re considering going bargain hunting, these areas of the world might be worth some investigation.

Tags: Asia, China, Emerging Markets, India