ETFs That Focus on Emerging Market Consumers | ETF Trends

Emerging market ETFs have become popular in recent years, and now there are funds that target specific sectors. The burgeoning middle class in countries such as Russia, China and India has become an area of the market that investors have shown interest in for good reason.

“The optimism in the market carries from expectation that central banks are moving toward a position of policy easing and stimulus support,” Aryam Vazquez, an economist for global emerging markets at Wells Fargo, said in a recent report.

The following ETFs allow investors to capture emerging markets consumers and takes the frustration out of the decisions, reports The ETF Professor on Benzinga. Since ETFs are well-rounded baskets of stocks, the exposure an investor gets is diversified enough to cut some of the risk. [Two ETFs Caputring Emerging Markets Middle Class Growth]

  • EG Shares Emerging Markets ETF (NYSEArca:ECON) The ETF has returned 6.4% in 2012. India,Malaysia, Mexico, Brazil and Chile are some of the countries that are represented. The focus is on consumer staples.
  • iShares Emerging Markets Consumer Discretionary Sector Fund (NYSEArca: EMDIThis ETF is down 8.2% in 2012. With $2.4 million in AUM and trading volume under 400 share per day, some investors may not have interest. South Korea and South Africa dominate the half of the funds’ assets.
  • EGShares India Consumer ETF (NYSEArca: INCOThe concentrated ETF is up 20.3% year-to-date. Personal goods and food dominate the portfolio, but the 0.89% expense ratio may keep some investors away. [ETF Chart of the Day: India]
  • Global X China Consumer ETF (NYSEArca: CHIQChina is the dominating country that highlights how lucrative an investment in consumerism can be. The fund has $109.3 million in asset under management.
  • Global X Brazil Consumer ETF (NYSEArca: BRAQThe fund is much smaller than CHIQ, with $22.8 million in AUM. The ETF is a mid-cap play and avoids the mega-cap companies entirely. [Best Emerging Market ETFs]
  • EGShares Emerging Markets Domestic Demand ETF(NYSEArca: EMDD) The ETF is just about one week old. It is a new play on internal consumption, and focuses on the export side of an economy. Mexico, Indonesia and Malaysia are some of the notable economies featured.
EG Shares Emerging Markets ETF
Tisha Guerrero contributed to this article. 

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.