But, Kang notes, if the story is a long-term one, there will likely be more emerging market-focused managers appearing on the scene. “I believe the emerging market story will be with us for awhile,” Kang says. “And more product providers will appear in the space just like we see now.”
These providers are simply trying to meet market demand for new ways to play emerging markets. This also fosters a healthy competition within the industry and keeps things fair. Having a range of options is never a bad thing for investors.
Has the proliferation of emerging market ETFs caused a bubble? That remains to be seen, but investors can protect themselves from bubbles by having (and using) a pre-set exit strategy. (Is there a bubble?)
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