Many countries that fall under the emerging and or frontier market categories get overlooked, overshadowed by the BRIC wall. Some analysts say if you’re not looking at some other markets, you could be leaving a wide-open hole in your portfolio.

How much should be allocated to your portfolio, though, is a matter of debate.

Alexandria Zendrian for Forbes explains that a 50% emerging markets weight is not recommended, but at least 30% should be international.  The average portfolio has about a 2% allocation to emerging markets, which is underweight considering that two-thirds of the global market cap lies outside the United States. (Why consider frontier markets?)

There are many other economies besides China, Brazil, Russia and India that are emerging, and they have made it through the financial crisis better than most. Eastern Europe is an area that has made it through the banking crisis well, and has overcome a currency problem as well. (Check out other alternative ETFs for BRIC investors).

In fact, eight of the top 10 markets  that have performed well over the past quarter are from Eastern Europe. Those top 10 markets are: Lithuania (up 46%), Serbia (39%), Ukraine (39%), Macedonia (38%), Estonia (37%), Russia (35%), Kazakhstan (34.8%), Vietnam (26%), Cyprus (26%) and Argentina (25%). (What you’re missing when you’re not global).

For more stories about frontier markets or Eastern Europe, visit the category.

Other emerging markets investors can consider include:

• iShares MSCI Emerging Markets Eastern Europe Index Fund (NYSEArca: ESR): up 44% since inception

• Market Vectors Vietnam (NYSEArca:VNM): up 5.7% since inception

• Global X/InterBolsa FTSE Colombia 20 (NYSEArca: GXG): up 90.8% since inception

• Emerging Global Shares DJ Emerging Markets Energy Titans (NYSEArca: EEO): up 12.8% in the last three months

Although the pace may eventually slow down, Barron’s reports that emerging markets still have room left to grow in the long haul. And for the time being, they may be the place to hide out as developed markets still work toward normalcy. In the near-term, growth rates in developed nations are expected to be lackluster, and much less robust than those in the developing world’s. (What you’re missing when you’re not globally invested).

Countries that are resource rich and developing are stockpiling cash and shoring up their balance sheets for a strong recovery and a growth spurt unlike any seen before. Earnings and  economic activity have been revived. Morgan Stanley feels that earnings in emerging markets have bottomed in the third quarter and they’re now set to climb again. (Why frontier markets could be even bigger).

For more stores about emerging markets, visit our emerging markets category.

There are a variety of ways to play emerging markets. There are broad funds, such as iShares MSCI Emerging Markets (NYSEArca: EEM), Vanguard Emerging Markets (NYSEArca: VWO) and iShares MSCI EAFE Index (NYSEArca: EFA).

There are funds that focus on regions, such as Claymore/BNY Mellon BRIC (NYSEArca: EEB) and BLDRSAsia 50 ADR Index (Nasdaq: ADRA).

Finally, there are single-country funds, such as iShares MSCI Brazil (NYSEArca: EWZ) and Market Vectors Vietnam (NYSEArca: VNM).

Keep in mind that the narrower you get in your exposure to emerging and frontier markets, the higher your risk will be. Be sure to have an entry and exit strategy before you invest. (How to follow trends).

India’s economy is forecast to see “definite signs of recovery” in the second half of the current fiscal year, reports The Economic Times. Growth is predicted to be in the 6% to 6.5% range. But there are a number of investors who want to expand their horizons beyond the BRIC countries.

While BRIC countries have been growing and moving, the expansion of other developing nations is widening the choices investors have. For instance, Vietnam, Thailand and Turkey have all gone through growth that is every bit as significant, explains Don Dion for TheStreet.

While the idea of Vietnam or South Korea may appear refreshing if you’re looking for some fresh blood for your portfolio, it’s key to remember that emerging markets entail risk. The best thing to do is watch on the sidelines for the moving averages, then get in slowly. If you enter with a discipline and a sell point, you’ll check your emotions at the door.

As Don Dion for The Street explains, these funds can be volatile, so a small asset allocation to these funds is appropriate if you plan to take a buy-and-hold approach.

The consideration that goes into single-country ETFs is that as an investor, you are subject to politics, social traumas and reforms, and of course, concentration in a particular sector. This re-iterates the need for every investor to brush up and do some research before going in.

A sample of BRIC ETFs, and a couple alternatives:

• iShares MSCI BRIC (NYSEArca: BKF): up 66.9% year-to-date
• Claymore/BNY BRIC (NYSEArca: EEB): up 66.1% year-to-date
• Market Vectors Russia (NYSEArca: RSX): up 104.3% year-to-date
• iShares MSCI South Korea (NYSEArca: EWY): up 67.3% year-to-date
• Market Vectors Vietnam (NYSEArca: VNM): up 10% since Aug. 14 inception
• iShares MSCI Turkey (NYSEArca: TUR): up 84.3% year-to-date
• iShares MSCI Thailand (NYSEArca: THD): up 73.6% year-to-date

For more stories about BRIC ETFs, visit our BRIC category.

Since the 1970s, and even in the last decade alone, Vietnam has made strides so great that it could be one of the more intriguing emerging market stories around. Its stock market was non-existent before 2000, and increasing foreign investment has enabled this country to do a virtual 180 in many respects.

Van Eck, which last week launched the Market Vectors Vietnam (VNM), published some impressive statistics in a fact sheet:

• The proportion of households with electricity has doubled to 94% since the early 1990s
• Nearly all children attend primary school
• Of the country’s 85 million residents, half of them are younger than 25
• Foreign direct investment tripled between 2007 and 2008 to $60.2 billion

“The government has taken a disciplined approach to managing the economy. I think they’ve gotten some of these problems under control, ” says Harvey Hirsch, senior vice president of marketing at Van Eck. As a result, the investment conditions are more favorable than they have been in the past.

That doesn’t mean Vietnam doesn’t have its share of struggles. Inflation, while more under control, still remains an issue. The country lacks basic infrastructure in many areas and the country’s government has a history of corruption. Vietnam still has some room to grow in order to become an entirely free market – about 60% of it is free, Hirsch says.

Vietnam stands to benefit from a batch of partnerships with other countries and corporations around the world. Europe’s largest bank, HSBC, plans to open branches in Vietnam; Intel (INTC) has built a chipset assembly and testing plant in Ho Chi Minh City; Japan’s Olympus group, along with other electronics companies, are exiting China and moving to open plants in Vietnam instead.

VNM’s underlying index tracks companies that generate at least 50% of their revenues in the country, with financials, energy and materials getting the top weightings. Vietnam represents 67.9% of the index; Singapore, 7.5%; United Kingdom, 6%; Malaysia, 5%. Canada, South Korea, India and Thailand are also represented.

Like any emerging or frontier market, Vietnam should be handled with caution. It’s still a Communist country and could experience volatility as it continues to grow. We suggest having both an entry and an exit strategy to protect yourself and mitigate risk.

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

Van Eck Global is bringing investors an ETF that focuses solely on Vietnam’s stocks, as the interest in emerging markets is surging. Market Vectors Vietnam (VNM) is the first U.S.-listed ETF dedicated to Vietnam, and will track the Market Vectors Vietnam index.

Walter Brandimarte for Reuters explains that the index tracks companies that generate at least 50% of their revenues in the country, with financials, energy and materials getting the top weightings. Vietnam represents 67.9% of the index; Singapore, 7.5%; United Kingdom, 6%; Malaysia, 5%. Canada, South Korea, India and Thailand are also represented.

A few other interesting facts about Vietnam:

• The country has a population that is young and well-educated. Half of the 90 million residents are under 25, boosting prospects for local economic growth.
• The country has been increasingly making structural reforms in order to modernize itself, according to the CIA World Factbook.
• Vietnam joined the World Trade Organization (WTO) in 2007.
• Deep poverty has been on the decline and it’s now smaller than that of China, India and the Philippines.
• The labor force is growing by 500,000 people each year, pushing Vietnam to work hard to create jobs.
• The Vietnamese economy grew an estimated 3.9% in the first six months of 2009 from a year earlier, and a total of 5% growth is estimated for this year.

For more stories about Vietnam, visit our Vietnam category.

On average, American investors have anywhere from 2%-20% exposure in foreign markets. This can prove dangerous for a few reasons.

Tim Hanson for The Motley Fool says that this leaves you too vulnerable to the slowing in the United States’ economy. Declining home values, a weaker dollar and a beat up portfolio are not a good mix.

Second, when you ignore foreign markets, you’re all but assuring that you are going to miss out on the greatest economic growth forecast to come in the next 10 to 15 years. From a growth standpoint, China, India, Brazil and even Vietnam and Mexico have more potential going forward.

While growth has slowed or even reversed course in most markets in the world, domestic and global, this won’t always be the case. Valuations on emerging markets may be looking ripe in the near future.

Foreign markets have been beat up along with everyone else. Some might take longer to recover, while others may bounce back nicely. Be sure to have a strategy in place before jumping back into the market. The 50-day moving average is a good place to start, and moving incrementally instead of all at once will give you more control.

• PowerShares BLDRS Asia 50 ADR Index Fund (ADRA): down 51.3% year-to-date

• Vanguard European (VGK): down 49.8% year-to-date

Standard & Poor’s has launched the first index tracking the largest and most liquid companies in Vietnam. The S&P Vietnam 10 Index adds to the Asian line of equity indexes within the S&P family. Previously, Vietnam was only tracked within the broad-based Asian indexes, so says Index Universe staff.

Companies to be included in the index must have a float-adjusted market capitalization above $50 million and a three-month average daily trading value above $250,000, and must trade on local Vietnam exchanges. Sectors covered include consumer discretionary, energy, financials, industrials, information technology, materials and utilities. Vietnam is currently classified as a frontier country, and has gained much attention from speculators.

According to insiders, the biggest challenges Vietnam faces right now are human resources development, infrastructure development and economic stability. According to Prime Minister Nguyen Sinh Hung, the Vietnamese has overcome its toughest period. The price growth has reduced, the economy has stabilized and social security is insured, reports Nahn Dan.

While the crisis in the United States will have a negative impact on the country, there are steps they can take to reduce that exposure, such as by diversifying their export markets and increasing trade with other developing countries.

For exposure to emerging markets, why not look into PowerShares Emerging Markets Sovereign Debt Portfolio (PCY). It was launched last October, and has behaved according to the recent roll out of emerging markets.

Roger Nusbaum for The Street explains that PCY is dollar-denominated, so the greenback’s moves are not totally responsible for the decline; the price has pulled back because of the capital rotating out of emerging markets’ assets. Nusbaum describes PCY as doing very little, and then rolling over slightly in June. Price leadership should return once U.S. rates start to rise.

A closer look into PCY shows exposure to 22 countries from places such as Vietnam, Brazil, Turkey, Poland, Qatar and Uruguay. Venezuela is the riskiest holding, because if the country cancels its debt, the ETF would instantly lose  4.5%. The bonds held in the ETF are dollar-denominated so you won’t be exposed to small devaluations. 39% of holdings mature between 5-10 years, and another 39% matures within 20+ years.

PCY is down 5.6% year-to-date.

Inflation is rising the fastest it has in a decade, and the bank cautioned that more increases were possible, says Suttinee Yuvejwattana for Bloomberg. The rate is now at 3.5%.

The baht also fell on concern that the increase wasn’t going to be enough to do the trick and cool the inflation rate, which hit 8.9% last month. The rising cost of food and oil have been forcing central banks from Vietnam to Pakistan to raise borrowing costs, despite a slowdown in the United States that has cooled demand for Asian exports.

Thailand’s key stock index slid for three straight days, losing 3.4% today.

As part of an effort to help the nation’s poor, Thailand’s prime minister announced a $1.4 billion program to cut fuel taxes, offer free electricity and water and waive fares for bus and train seats.

The iShares MSCI Thailand Investable Market Index (THD) seems to reflect the ailing state of the country’s economy these days, as it’s down 25% since its April 1inception. Will the rate cuts be enough?

The Rogers Van Eck Hard Assets Producers Index (RVEI) gives investors a chance to ride the commodities bull by accessing a universe of producers from all over the world. Most of the index’s components are producers of raw materials for agriculture, alternative energy, base and industrial metals, energy, forest products and precious metals.

“From what I can see, there is not another index like it,” he told us. “There are no indexes that are specifically targeted at stocks that are major producers of commodities.” The others, he says, are primarily made up of American and Australian companies.

His new index is a global one made up of 39 countries, meant to truly capture the global commodities boom, because countries such as the United States and Canada aren’t the only major producers. The United States is 35.8% of the fund and Canada is 12%. Britain is 5.9%, Russia is 5.1%, China is 4.8% and Brazil is 4.1%. Another 33 countries make up the remaining 32%.

“The whole world is represented, and most countries produce one or two commodities,” Rogers says.

The inspiration for the index came from conversations Rogers continually was having with people who would tell him they couldn’t bring themselves to invest in commodities.

“Until they change their views or the world changes, we decided we should be able to offer them a choice. I won’t get into who’s right and who’s wrong.”

Up, Up and Away

High commodity prices could be here to stay, he says, although he points out that there have been corrections. Since the current oil boom began in 1999, the prices have gone down 40% to 50% three times. “Everything can go down and correct, but that’s not going to be the end of the bull market,” Rogers says.

He points out, too, that any number of catastrophic events can emerge from out of the blue to send prices down sharply, but that the bull market isn’t over until someone discovers more energy in areas that are accessible.

As for blaming speculators? Hogwash.

“Whenever there’s supply and demand, the money goes there, whether it’s stocks, bonds or currency,” Rogers says. Eliminating speculation would simply eliminate all investment and eventually just drive it overseas.

He also points out that in the 1990s, the fundamentals in commodities were negative, and it kept investors out. When fundamentals shift to the positive, they come in and prices go up. “They wouldn’t go higher if the fundamentals weren’t positive.”

Staying Out of It

Roger cautions against ignoring economists’ warnings, citing the 1930 Hawley-Smoot Tariff Act as a prime example of the dire consequences of doing so. In the United States, more than 1,000 economists signed a petition against the legislation that would raise tariffs on imported goods to record levels.

The law passed anyway, and many countries retaliated with their own tariffs. Exports and imports plunged by more than half. Many now blame the act as a major cause of the severity of the Great Depression.

The moral of the story? Don’t ignore the economists. They know what they’re talking about. Unfortunately, Rogers says, “Even if the economists say it’s wrong, the politicians will do it anyway.”

As a result, “a lot of what’s going on is because of the American government. They may wind up eliminating investment in America.”

The best approach to an ailing economy is a hands-off one, because if the government steps in and starts regulating, the effect will only be a temporary one that would eventually create an even bigger bull market.

“If you drive down the price of rice, farmers just won’t produce more rice, because it’s too cheap. Supply and demand will be worse than it is now,” Roger says.

He doesn’t foresee that things will improve with the next presidential administration, either.

“Neither of the candidates understands the dire straits the world is in,” he says. “No matter who wins, we’ll be worse off, unless you happen to be friends with or in cahoots with those who win.”

Living in Asia

Rogers left New York and moved his family to Singapore last year, based on his belief that Asia has a strong future ahead of it. He says Americans and the rest of the world need to let go of how they view some countries there – for example, a Vietnam ravaged by war or an India ruined by Indira Ghandi.

“That’s not Asia anymore,” he says.

He believes so much in the changes Asia is going through and the work ethic and dedication of its population that he’s raising his daughters to speak Mandarin Chinese, because he wants them to be prepared for life in the 21st century. Being there to witness these changes has only affirmed his view.

Rogers is known for making some bold predictions that have come to pass, including sounding the alarm a few years ago that America was headed for a recession. He’s got some predictions this time around, too, but it’s a just little good news and mostly bad news, at least in the short-term.

The good news? “No bull is indefinite.”

However… “The recession will probably last longer because the Central Bank is making big mistakes. I can’t believe how stupid they are.”

“I’m not terribly optimistic that it’s going to end anytime soon. We’ll have problems for awhile.”