“The underlying companies get about 90% of their revenue from selling within their home markets and to other emerging markets,” he writes for MarketWatch.
“But there are other ways to slice and dice the emerging markets universe, such as by dividend yield,” Sizemore added, citing research that high-dividend stocks outperform by a wide margin in developing markets.
ETFs that focus on dividends include WisdomTree Emerging Markets Equity Income Fund (NYSEArca: DEM) and EGShares EM Dividend High Income ETF (NYSEArca: EMHD). [New Dividend ETF for Emerging Markets]
Full disclosure: Tom Lydon’s clients own EEM and DEM.