Meanwhile, in China, authorities are tackling debt problems and President Xi Jinping is consolidating his power, which could potentially fuel political risks and hinder growth.
On the other hand, according to a recent Bloomberg survey, investors pointed to selective emerging market opportunities, such as Mexico and Brazil, which were among the most favored emerging market investment destinations.
ETF investors can also gain broad exposure to the emerging markets through options such as the Vanguard FTSE Emerging Markets ETF (NYSEArca: VWO) and the iShares Core MSCI Emerging Markets ETF (NYSEArca: IEMG), the two most popular and largest EM-related ETFs on the market.
Investors can also gain targeted exposure to specific emerging economies through country-specific ETFs, such as the iShares MSCI Mexico Capped ETF (NYSEArca: EWW) and iShares MSCI Brazil Capped ETF (NYSEArca: EWZ).
For more information on the developing economies, visit our emerging markets category.