Despite the performance shown by emerging markets in the last few months, there are still investors too skittish to take positions. By using exchange traded funds (ETFs) to get emerging market exposure, they may find it less daunting.
Many executive pension fund managers worldwide are pouring assets into emerging markets in an effort to gain more bang for the buck. As the recession has wound down, emerging markets generally have fared better than developed ones, making them an appealing destination for cash, reports Thoa Hua for Pensions & Investments.
Recently, long-held assumptions about emerging markets have been challenged, including their level of volatility, liquidity limits and their overall ability to survive an economic crisis. (Why ETFs are ideal as emerging market plays).
To the surprise of many, it was the emerging markets that recovered before the developed world even begin to dream of a turnaround. Gary Gordon for ETF Expert notes that while it’s true that emerging markets were among the first to fall, they were also the first to recover. (Six things you’re missing by not being global).