“While we would generally advocate an overweight to emerging markets in 2012, we believe investors can further improve performance by unbundling that exposure into more granular unites, i.e., country or regional exposures,” the strategist wrote.

In particular, investors “should overweight Latin America and to a lesser extent emerging Asia, while significantly underweighting emerging Europe.”

The iShares MSCI Emerging Markets has over 10% in emerging Europe, according to Morningstar.

To avoid Europe, investors might consider the relatively new iShares MSCI Emerging Markets Latin America (NasdaqGM: EEML) and iShares MSCI Emerging Markets Asia (NasdaqGM: EEMA), Koesterich said.