Due in part to those compelling valuations and improved investor sentiment toward once downtrodden markets such as Brazil, VWO has climbed almost 13% in the past 90 days. There are key differences between VWO, which S&P Capital IQ rates overweight, and rival emerging markets ETFs.

For example, VWO’s underlying index does not view South Korea as an emerging market. Therefore the ETF holds no South Korea stocks. Some of that weight is deferred to China and Brazil. Those countries combine for almost 34% of VWO’s weight compared to 26.6% of the MSCI Emerging Markets Index. [South Korea Remains an Emerging Market]

Windham’s strategy also includes exposure to ETFs that track alternative asset classes, including the PowerShares DB Commodity Index Tracking Fund (NYSEArca: DBC) and the Vanguard REIT ETF (NYSEArca: VNQ).

Signs of a recovering U.S. economy and falling interest rates have been stoking investor interest in REIT ETFs. Only three ETFs have taken in more new assets this than the marketweight-rated VNQ. The ETF is up nearly 15% year-to-date.

Vanguard Total Stock Market ETF