Emerging Markets: Correlation Between Economic Growth and Stock Market Returns

The MSCI Emerging Market(EM) Index has posted an annualized return of 10.2% over the past 10 years thru the end of 2009. Due to this solid performance and other factors investors are increasingly attracted to EM equities. However many studies have proven that economic growth does not automatically translate into higher stock market returns. In …

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Why Country ETFs Are Not the Best Way to Invest in Emerging Markets

ETFs offer one of the simplest and easiest ways to gain exposure to emerging markets.Investors have poured billions of dollars in emerging market funds making them some of the largest in the fund universe.However investing in emerging markets via ETFs or an index fund is not the best way to capture the growth of these …

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Are Emerging-Markets Stocks Cheap?

Due to sluggish economic growth in the developed world and strong growth in emerging countries, investors are betting that emerging market equities will yield better returns. According to a story in the Journal: “In a recent report, Standard & Poor’s said that almost $50 billion flowed into emerging-markets equity funds this year through September, while …

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Ten Reasons to Invest in Emerging Markets

Emerging markets have been growing at an incredible pace in the past few years. Some of these markets have performed well this year also compared to the US. For example, the year-to-date returns of Brazil, India and Mexico are 4.3%, 17.1 % and 5.3% respectively. Despite the strong growth in recent years, emerging markets continue …

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Some Reasons to Invest in Emerging Market Small-Caps

One of the asset classes that investors often overlook is international small-caps. This is understandable since investing in any small cap is often considered to be extremely risky because of the volatility and other risks associated with them. Compared to domestic small caps, foreign small caps pose additional risks such as the lack of liquidity, …

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