Additionally, emerging market consumers will play an increasingly larger role ahead. Only about 4% of the world’s population was middle class living in emerging countries back in 2000, but it is expected to rise to 15% by 2030, according to the OECD Development Center. As the middle-income class grows, this could translate to increased discretionary spending, which could fuel growth in the emerging consumer sectors.
ETF Investors may gain broad exposure to the emerging markets thorugh options like the Vanguard FTSE Emerging Markets ETF (NYSEArca: VWO), iShares Core MSCI Emerging Markets ETF (NYSEArca: IEMG), EGShares EM Core ex-China ETF (NYSEArca:XCEM) and Columbia EM Quality Dividend ETF (NYSEArca: HILO).
Something like the Columbia Emerging Markets Consumer ETF (NYSEArca: ECON) can also help investors focus on the many high-quality consumer brands that cater toward a rising middle class.
For more information on the developing economies, visit our emerging markets category.