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Investing In Emerging Markets Using Funds


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Investing In Emerging MarketsBy

While investing in developed world countries like Germany, Japan, and the United States is the cornerstone of many investment strategies, investing in emerging markets is a good way to capture the higher economic growth that occurs in emerging market countries. There are billions of people in emerging market countries that are working hard to improve their lives, which in turn is causing explosive growth in their economies, which is eventually reflected in the price of stocks. Savvy investors looking to beat the stock market averages look for investment opportunities in emerging markets economies. One of the safest ways to capture emerging markets growth without exposing an investment portfolio to excessive risk is using funds, including mutual funds and exchange traded funds (ETFs) to invest in securities of companies either located in emerging markets or that derive a significant portion of their revenue and income from operating in emerging markets.

Investing In Emerging Markets Using Funds

The following are some fund ideas for investing in frontier market and emerging markets. Frontier markets are emerging markets that are at the lower range of market capitalization and liquidity in the spectrum of emerging markets. It is important to keep in mind that some of these funds have sales loads and past performance is not an indication of future performance.

– BLDRS Emerging Markets 50 ADR Index (NASDAQ: ADRE) – The BLDRS Emerging Markets 50 ADR Index is an ETF that invests in companies in the Bank of New York Emerging Markets 50 ADR Index.

– SPDR S&P Emerging Markets Small Cap (NYSE: EWX) – The BLDRS Emerging Markets 50 ADR Index is an ETF that tracks stocks in the small capitalization segment of emerging market countries. The fund generally tracks the performance of the S&P Emerging Markets Under $2 Billion Index.

– Wasatch Frontier Emerg Sm Countrs Inv (WAFMX) – Wasatch Frontier Emerg Sm Countrs Inv is a mutual fund that invests of its assets in equity securities of companies that do business in small emerging market countries and frontier markets.

– HSBC Frontier Markets A (HSFAX) – HSBC Frontier Markets A is a mutual fund that tries to achieve long-term capital appreciation through investments in equity securities of companies that generate a majority of their revenues and income in frontier markets.

– CNI Charter Emerging Markets N (RIMIX) – CNI Charter Emerging Markets is a mutual fund that invests with the gaoal of long-term capital appreciation. The fund invests in equity securities of companies that operate mainly in emerging market countries, with a focus on Asia.

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