Emerging-Market ETFs Are April's Star Performers

Emerging-market ETFs have seen a strong jump in April as strength in China, Russia and even long-forgotten Brazil add to gains in foreign stocks. Investors have scrambled to pick up publicly traded companies in these undervalued countries as oil prices stabilize and growth prospects brighten.

Vanguard Emerging-Markets ETF

The Vanguard Emerging Markets Stock Index Fd VWO is a broad-based index of developing nations that tracks over 1,000 stocks. VWO is the largest emerging market ETF of its kind, with over $46 billion in total assets and sporting a minimalist 0.15 percent expense ratio.

Through the first quarter of this year, VWO had notched a gain of 2.30 percent. Nevertheless, this fund has surged over 8 percent this month (through Thursday).

That sort of vertical ascent shows just how quickly these high-growth stocks can ramp higher given the muted expectations in the developed world.

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Chinese Emerging-Market ETF

Russian Emerging-Market ETF

Catalysts Of Movement

Fund flows to these two broad emerging market ETFs have actually been negative this year, which may suggest this recent move has yet to convince big money investors. The majority of overseas asset flows have been in currency-hedged ETFs tracking Europe and other international indices.

Disclosure: Clients of FMD Capital Management own shares of VWO at the time this article was published.