Emerging market exchange traded funds (ETFs) posted phenomenal growth last year, but some investors are beginning to turn their eyes back to developed economies as Western countries show they are back in business.

On the pro-developed markets side: the U.S. is posting better-than-expected growth, Germany is doing quite well and the rest of Europe may dodge a financial meltdown, remarks Alex Frangos for The Wall Street Journal. [5 ETFs for the U.S. Equity Boom.]

Meanwhile, emerging markets like India, China, Brazil and Indonesia, are struggling to subdue their high inflation rates, and observers are anxiously waiting to see if policymakers will overreact. Additionally, some of these markets, stocks and bonds are hovering around all-time highs. [Emerging Market ETFs: VWO Takes the Lead.]

Citigroup analysts Geoffrey Dennis and Jason Press note that emerging market stocks are trading at a 10% discount to developed markets on a forward price-to-earnings ratio. Citi projects that emerging markets will continue to grain 30% this year.