Emerging-Market ETFs Like VWO, EEM, EWT, EWY, INP Have An Edge, Says Barron's

Exchange traded funds or ETFs are some of the best performers which is evident from the iShares MSCI Emerging Markets Fund (NYSE: EEM) that rose 66% in 2009 with a market value of $37 billion. The biggest emerging ETF markets include Vanguard Emerging Markets (NYSE: VWO), iShares MSCI Taiwan Index (NYSE: EWT), South Korea Index Fund (NYSE: EWY), and iPath MSCI India Index (NYSE: INP) among other from the BRIC bloc that includes Brazil, Russia, India, China. The market may be moving at a slower pace but is expected to grow as expert advisors and investors turn to ETFs as a major investment.

For instance, in China, purchasing shares in manufacturing and consumer-oriented sectors is a better option since the iShares FTSE/Xinhua China 25 has already a large base in financial companies and telecoms. Another strong factor in favor of the Chinese market is a GDP growth rate that is expected to be double that of the USA. Moody’s recent upgrade of Brazil’s sovereign debt to investment-grade is also a good sign for the ETF market. U.S. pension funds are also likely to see an increase in allocations of the next few years due to regulations, which can get a boost from the high-yielding ETF markets.