Investors turn to emerging market ETFs

Emerging market ETFs are gaining traction with investors as providers generate new strategies for emerging markets exposure. With the introduction of funds based on emerging market local currency government bond indexes, and others targeting specific themes and sectors, it no longer makes sense to view emerging market ETFs as a single, homogenous asset class

Exchange-traded funds (ETFs) and emerging markets are not a new combination. Exposure to seemingly illiquid corners of the globe has been a hallmark of ETFs since their inception and continued innovation is a mark of the sector. Gone are the days when ‘emerging markets’ stood simply for one investment position; the ETF emerging markets universe has reached a new level of sophistication. In 2011, ETFs linked to local currency emerging markets bonds were issued in Europe, and ETFs targeting single