It is true that emerging market benchmarks are trading at a deep discount to developed markets, but the apparent divergence is explained almost entirely by the difference in sector weightings between emerging and developed indexes,” according to Gavekal Research by way of Dimitra DeFotis for Barron’s.

In October, a monthly fund manager survey from Bank of America Merrill Lynch, exposure to emerging market stocks remained at a record low, reports Dhara Ranasinghe for CNBC. Earlier this year, Barclays forecast better growth prospects in the developing economies, projecting a 12% earnings growth in emerging markets, compared to a 7% earnings growth in the U.S.

Vanguard FTSE Emerging Markets ETF