An emerging reality

Rising equity returns in some emerging markets have attracted the attention of institutional investors, keen to diversify portfolios. Increasingly, they are using exchange-traded funds to gain quick exposure to these markets. Ryan Davidson reports

Emerging markets have been one of the bright spots in an otherwise taxing year. While equity indexes in more developed markets have whipped around violently and credit markets continue to endure pain, many emerging markets in Asia, Latin America and eastern Europe have recorded positive returns.

Institutional investors have been increasingly keen to jump into these regions to bolster equity portfolios - the problem is how. Many smaller investors in Europe and the US do not have the relevant