Assets flowing into exchange traded funds (ETFs) that target certain market sectors illustrates that more and more investors are getting hip to their benefits and realizing the positive role they can serve in their portfolios.

ETFs are designed to mimic the index that they track, which also gives investors the flexibility to invest by single country or region, not just a particular industry. ETFs are also bought and sold throughout the day, so they have the ease of a single stock rather than closing once at the end of the trading day.

As a result, some trends have been presenting themselves in certain areas as investors learn about these tools.

More emerging market investors are shifting from actively managed mutual funds and putting their capital into ETFs, which have doubled their market share over the past year. Veronica Navarro Espinosa for The Washington Post reports that the number of available funds from this category have risen from 99 to 111, according to Credit Suisse facts.

The amount of assets in emerging markets is at $365 billion, with 30% of this invested in ETFs. Investors seem tired of the high fees associated with mutual funds, making ETFs attractive. More and more are realizing the benefits of ETFs over other investments.

ETFs also work to spread the risk around when it comes to certain sectors, such as financials. Don Dion for TheStreet notes that when it comes to that sector, picking individual stocks now could be hazardous. Funds instead will help make your portfolio less vulnerable to a single bank.

Dion wonders what’s better when it comes to the sector, though – a financial mutual fund or ETF? For many investors, the answer may come down to fees. The iShares Dow Jones U.S. Regional Banks (IAT) has a 0.48% expense ratio, while FBR Small Cap Financial (FBRSX) clocks in at 2.10%. There are other things to consider, of course, but it shows the benefits ETFs offer to investors who seek them out.

• iShares MSCI Brazil Index (EWZ): up 44.9% year-to-date

• iShares MSCI Emerging Markets Index (EEM): up 22.3% year-to-date

For more stories on emerging markets, visit our emerging markets category.

Tags: Brazil, EEM, Emerging Markets, ETF 101, EWZ, Financial, Global ETFs, Sector ETFs