Emerging market exchange traded funds (ETFs) are gaining momentum as investors are flocking to them, pumping them with assets and taking them to new highs.

John Spence for MarketWatch reports that two diversified choices for this sector,Vanguard Emerging Markets ETF (NYSEArca: VWO) and iShares MSCI Emerging Markets Index (NYSEArca: EEM) are among the top five U.S. ETFs by assets. [How to Capture Global Consumer Spending With ETFs.]

In August, for the second straight month, international stock ETFs led all asset classes in terms of net inflows. This was powered by strong demand for emerging markets funds. One explanation for their popularity is the dismal outlook for U.S. equities and the fate of long-term Treasuries if interest rates rise. [Comparing Latin American ETFs.]

Meanwhile, the Claymore/BNY Mellon Frontier Markets ETF (NYSEArca: FRN) has surpassed $130 million in total assets. FRN gives investors exposure to frontier markets, including Argentina, Chile, Colombia, Czech Republic, Egypt, Georgia, Kazakhstan, Lebanon, Nigeria, Oman, Pakistan, Peru, Poland, Qatar and Ukraine.

When investing overseas, have a strategy that has you in place for potential long-term uptrends and out before you’ve ridden a position to the bottom. Here’s one we use.

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. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. 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.