Playing The Emerging Markets Through Small Cap ETFs

Emerging markets ETFs have become tremendously popular in recent years, as investors frustrated by the stagnant growth in the developed world have been lured in by the impressive economic expansion occurring in the developing world. Though there are many options available, the most popular way to play emerging markets is through VWO or EEM; two ETFs linked to the MSCI Emerging Markets Index. That benchmark is a cap-weighted index that consists of the largest publicly-traded companies listed and operating in emerging markets. The tilt towards large cap stocks is common in international equity ETFs, many of which are linked to cap-weighted indexes. But in recent years investors have become increasingly interested in rounding out emerging markets exposure by investing in small cap stocks of the developing world, an asset class that often maintains a risk/return profile very different from large cap stocks [see also Guide To Small Cap [...] Click here to read the original article on ETFdb.com. Related Stories: Emerging Markets ETFs: Where’s The Consumer Exposure? Does Your Portfolio Need Another Emerging Markets ETF? Emerging Markets ETF To Bulk Up China, Brazil Exposure