“The study indicates there is no longer a blanket acceptance of the emerging market story. Investors’ return expectations have dropped markedly for equities and bonds,” Nick Lyster, European CEO of Principal Global Investors Europe, said in the article.
Consequently, investors are now more likely to examine countries and their economic benefits individually. For instance, countries that can push through economic reforms remain attractive, with one third of respondents pointing to China, which is in the middle of shifting over to a domestic consumption-oriented economy.
ETF investors interested in gaining targeted exposure to China have a number of options available. ETFs like the iShares China Large-Cap ETF (NYSEArca: FXI), iShares MSCI China ETF (NYSEArca: MCHI) and SPDR S&P China ETF (NYSEArca: GXC) provide exposure to Chinese equities that are listed on Hong Kong or New York Stock Exchanges. Additionally, a new line of China funds that provide direct access to Chinese A-shares market have recently launched, including China A-shares ETFs, like the db X-trackers Harvest CSI 300 China A-Shares Fund (NYSEArca: ASHR), KraneShares Bosera MSCI China A ETF (NYSEArca: KBA) and Market Vectors ChinaAMC A-Share ETF (NYSEArca: PEK). [Big China ETFs Rally, but Investors Hardly Notice]
According to XTF data, there are 170 ex-US country specific ETFs available to investors that track prominent emerging market countries like Brazil, Russia, India and China to frontier, or pre-emerging, economies like Nigeria and Vietnam. The ETF universe does not cover every developing market, or at least not yet.
For more information on developing economies, visit our emerging markets category.
Max Chen contributed to this article.