“The emerging markets represent long-term value, and have been mispriced as capital flees to the dollar,” Matt Lasov, director of global research at Frontier Strategy Group, remarked.
Emerging market sector ETFs allow investors to gain targeted exposure to specific areas of in the emerging markets. For instance, EG Shares offers a wide range of sector ETFs based on emerging market companies. [Emerging Market ETFs Go Mainstream]
“The difficulty lies in the cost and the time and the complexity in getting into these markets,” Bob Holderith, president and founder of EG Shares, commented, reports Jason Abbruzzese for Financial Times. “We’ve learned how complex it is and we’ve learned how to navigate it.”
Holderith points out that these emerging market sector funds may help investors capitalize on specific economic trends within the emerging markets, more notably the “amount of money being spent on infrastructure and by the consumer.”
Besides EG Shares, Global X and Guggenheim also offer targeted exposure to markets in China and India. [The Growth Story Behind China’s Economy, ETFs]
- Vanguard Emerging Markets ETF (NYSEArca: VWO)
- iShares MSCI Emerging Index Fund
- EGShares Emerging Markets Consumer (NYSEArca: ECON)
For more information on the emerging markets, visit our emerging markets category.
Vanguard Emerging Markets ETF
Max Chen contributed to this article.