Last, make sure to check out the sector components. If an over-allocation to financials or energy is selected, then the fund may become too volatile and diversification is not going to be as promising.
iShares’ filing is just the latest in growing interest in emerging markets. Both Global X (Check out their new ETFs) and Emerging Global Shares (See their latest offerings) have added to their line-up of emerging market offerings. PowerShares has the PowerShares Emerging Markets Infrastructure (NYSEArca: PXR), as well. It’s up 86.3% year-to-date.
Now that the many broader developing regions and countries have been targeted with ETFs, it seems providers are increasingly turning to sectors in these markets to give investors more options for their portfolios. As with any emerging market fund, follow the trend lines in order to protect yourself. (How to follow trends).
For more stories about new ETFs, visit our New ETF category.