As investors look to diversify their exchange traded fund portfolios, people can include some emerging market allocations to help bolster a foreign equity position. However, you should be selective.

ETF Trends’ Tom Lydon recently sat down with Tyler Mordy, President and Co-CIO of HAHN Investment Stewards, to discuss investments in developing economies after years of lagging behind developed markets.

Tyler argues that investors should begin to pick and choose their emerging market country exposure.

“The danger for a lot of folks is they are throwing the baby out with the bath water,” Mordy said. “So, emerging markets as a broad asset class – historically ten years ago, let’s say – you could just buy, sort of, a one click EEM, or something like that. That’s not the case any more.”