Lead the Rush Back into Emerging Market ETFs

Risk is back on and that means Champagne corks are again popping in emerging markets.

Since the world is not ending, money should start rushing back to emerging markets as cheap (read free) US dollars seek out positive returns.

Where else is there growth? Sure ain't much in the US or in Europe.

"Go East, young man," is the new mantra for investors looking to make serious coin. And "Go South of the US too."

After a couple of weeks of huge losses in the global markets, now could be the perfect time to get back into emerging markets using exchange-traded funds.

From the beginning of August through last Friday, iShares MSCI Emerging Markets Index (NYSE: EEM) is down over 12%. EEM seeks results that correspond to the price and yield performance of publicly traded equity securities in global emerging markets.

A potentially great play in emerging markets over the next few years is India. Unlike China, the demographic picture in India is youthful; something else to think about is that India needs to build its infrastructure, which can be termed rudimentary if you are polite.

To get into India through an ETF, try PowerShares India Portfolio (NYSE: PIN). PIN recently hit its 52-week low and is down over 9% since August 1.

Looking south, you can see opportunity in the host of the 2014 FIFA World Cup. The Land of "The Beautiful Game" has been anything but pretty for investors of late: iShares MSCI Brazil Index (NYSE: EWZ) is down over 13% since August 1.

If the world's not ending, investing in EWZ now could have you dancing the samba in a couple of months.

ACTION ITEMS:

Bullish:
Traders who believe that money will again rush to emerging markets might want to consider the following trades:

• iShares MSCI Emerging Markets Index (NYSE: EEM)

• PowerShares India Portfolio (NYSE: PIN)

• iShares MSCI Brazil Index (NYSE: EWZ)

Bearish:
Traders who believe that we are at the beginning of a bear market and emerging markets will be hit hard may consider these alternate positions:

• Direxion Emerging Markets Bear 3X Shares (NYSE: EDZ)

• Direxion Daily India Bear 2X Shares (NYSE: INDZ)

• ProShares UltraShort MSCI Brazil (NYSE: BZQ)

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