Experts agree: they still project emerging economies will expand faster than developed countries. The International Monetary Fund projects developed economies will grow by 2.5% this year while emerging markets could expand by 6.5%. [Faceoff: Developed and Emerging Market ETFs.]
At this point, however, EEM and Vanguard Emerging Markets (NYSEArca: VWO) are right around their long-term trend lines. The time to get back in – if that’s what you’re looking for – may not be until the negative performance goes positive.
For more information on the emerging markets, visit our emerging markets category.
Max Chen contributed to this article.