It has been a tough year for emerging market ETFs but some funds that focus on dividend-paying stocks and the consumer sector have helped limit the damage.
The diversified iShares MSCI Emerging Markets (NYSEArca: EEM) is down about 5% year to date even though the ETF has shown some signs of life the past month.
Meanwhile, EGShares Emerging Markets Consumer ETF (NYSEArca: ECON) has managed to post a positive return in 2013. The ETF has also outperformed broad emerging market benchmarks the past three years. [Consumer Focus Powers Emerging Market ETF’s Outperformance]
Charles Sizemore at Sizemore Capital Management LLC says he uses ECON in his portfolios because it gives better access to the emerging market consumer.