Traditional emerging market investors may be overexposed to regional risks. Instead, traders may consider an alternative to cap-weighted index strategies, such as a smart-beta exchange traded fund that takes a more balanced macro approach the the developing countries.
On the upcoming webcast, Define Your Emerging Market Smart Beta Strategy, Mike LaBella, Portfolio Manager at QS Investors, and Brandon Clark, Director & Product Manager at Legg Mason Global Asset Management, will explain the potential pitfalls of a cap-weighted emerging market approach and offer a potentially better way to access the developing economies.
Related: Emerging Market ETFs Are Turning Around
Positive economic development over the past two decades has supported emerging markets. However, the positive momentum is not shared equally with the broad emerging market group. Developing economies are heterogeneous with significantly variant economic, political and developmental differences.
Consequently, investors should be aware of the potential opportunities and risks that the divergence reflects in the emerging markets.
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