How to Choose Emerging Market ETFs | ETF Trends

Choices, choices, choices. Emerging market exchange traded funds (ETFs) are no longer just broad, all-purpose plays. There are sector funds, single country funds and, yes, there are still the broad funds. What you choose to own, though, depends on you.

Greg Savage, managing director of iShares portfolio management group at BlackRock, commented on how “investors are looking for investment opportunities that access economic growth around different parts of the globe,” and that the main way to access the globe is to specifically target countries and regions with the highest growth and/or exposure to specific sectors, reports Sheryl Nance-Nash for Daily Finance. [Emerging Markets and ETFs: What’s in a Definition?]

An increasing number of ETF providers are throwing their hats into the emerging market ring, including Emerging Global Advisors, who are known for their pioneering emerging market sector funds, iShares and Market Vectors.

The potential for greater returns in the emerging markets translates to added risk, and exposure to even narrower, or niche, categories in the emerging market space can carry even more. Mike Halloran, vice president of market strategy for BPU Investment Management, cautions that “you should feel comfortable with the political and economic environment of the country you’re investing in.”