“Uncertainty around the outlook has increased. Escalating trade tensions and fears of U.S. overheating, along with rising interest rates, have contributed to a stronger U.S. dollar and tightening financial conditions. This has hit EM assets the hardest and created pockets of value, in our view,” said BlackRock.

Related: Bulls Ready to Wrestle Emerging Markets ETFs from Bears

Earnings growth in developing economies could be a sign of upside to come for emerging markets stocks and ETFs.

“EM earnings momentum is solid and increasingly broad-based. The median earnings growth for stocks in the MSCI EM Index for 2018 and 2019 is forecast to be 10.1% and 13.6%, respectively,” said BlackRock. “EM earnings growth was disproportionately concentrated in the tech sector in 2017, but eight of 11 sectors are forecast to deliver double-digit  earnings growth in 2018. Several other trends underpinning the appeal of EM equities are intact.”

For more ETF trends in emerging markets, click here.