Many investors and advisors remain cautious on the emerging markets because of perceived risks, such as the housing bubble in China and the drug war in Mexico, but some exchange traded funds that track these emerging markets are painting a different picture.

Prominent hedge fund manager, James Chanos, president and founder of Kynikos Associates, an investment firm known for its short selling, has warned that China is in a property bubble that could mirror the U.S. meltdown, writes Gary Gordon for TheStreet.

However, the Guggenheim China Real Estate Fund (NYSEArca: TAO), which tracks real estate investment trusts that generate revenue from real estate development, management and/or ownership of property in China, Hong Kong and Macau, has gained 37.1% year-to-date and is hovering around its 52-week high.

Guggenheim China Real Estate Fund

In Mexico, the border towns have been ravaged by drug cartel violence and real estate activity has also stagnated after the 2008 collapse.

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