The blind rush to emerging market exchange traded funds (ETFs) is slowing down as investors begin to selectively pick out potential winners from losers.

The markets were pleased with the higher percentage of corporations that beat their earnings and revenue forecasts, and investors have taken this mindset to include emerging market holdings, writes Gary Gordon for SeekingAlpha.

Gordon points out that investors are favoring dividend-oriented or equity income emerging market ETFs, such as the WisdomTree Emerging Market Small Cap Dividend (NYSEArca: DGS), WisdomTree Emerging Market Equity Income (NYSEArca: DEM) and SPDR Emerging Market Dividend Fund (NYSEArca: EDIV) while iShares MSCI Emerging Markets Index Fund (NYSEArca: EEM) and Vanguard MSCI Emerging Markets ETF (NYSEArca: VWO) have been lagging behind.

Emerging income and emerging dividend investors receive an income stream from less volatile holdings in economically sensitive, inflation-anticipating emerging markets, remarks Gordon.


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