Improving Investment Outlook for Emerging Market ETFs

Investors who are interested in the emerging markets have a number of ETF options available. For instance, some broad emerging market ETFs include the iShares MSCI Emerging Markets ETF (NYSEArca: EEM), Vanguard FTSE Emerging Markets ETF (NYSEArca: VWO) and Schwab Emerging Markets Equity ETF (NYSEArca: SCHE).

Related: WisdomTree Includes China A-Shares Exposure to Two EM ETFs

 

Alternatively, investors can also look to a number of new factor or smart beta ETF strategies that have hit the market.

“We’ve long been believers that a strategic approach to emerging markets can be beneficial for investors. This shift toward a more positive EM outlook among investors underscores the strong opportunities that can be uncovered in these markets and is critical to invest strategically and understand the nuances of each country or region,” CTI’s Head of Strategic Beta Marc Zeitoun said in a note.

Investors can also breakdown the emerging markets into even more focused strategies. For example, the Columbia EM Quality Dividend ETF (NYSEArca: HILO) provides a play on dividend-paying companies from developing markets, and the Columbia Emerging Markets Consumer ETF (NYSEArca: ECON) includes many high-quality consumer brands that cater toward a rising middle class.

For more information on the ETF market, visit our ETF performance reports category.