3

I'm a casual investor who is interested in diversifying into emerging markets. I have too much in US equities at the moment. Are there any good websites to research and track good investments in emerging markets?

  • Are you looking to invest broadly with, say, a single instrument (fund or ETF), or in specific-country indexes, or in actual individual companies? Are you already a stock-picker, or a fund-oriented type of investor? Is your investing for a set purpose, e.g. in a retirement account? – Chris W. Rea Aug 12 '14 at 17:35
4

Morningstar is often considered a trusted industry standard when it comes to rating mutual funds and ETFs. They offer the same data-centric information for other investments as well, such as individual stocks and bonds. You can consult Morningstar directly if you like, but any established broker will usually provide you with Morningstar's ratings for the products it is trying to sell to you.

Vanguard offers a few Emerging Markets stock and bond funds, some actively managed, some index funds. Other investment management companies (Fidelity, Schwab, etc.) presumably do as well. You could start by looking in Morningstar (or on the individual companies' websites) to find what the similarities and differences are among these funds. That can help answer some important questions:

  • what economies do the financial world consider to be "emerging"?
  • what is the distribution of world assets among these economies?
  • are there investment managers who believe certain emerging economies should be avoided/overweighted? Which ones?
  • what is the distribution of world assets between non-emerging and emerging economies?
  • are there investment managers who believe that emerging economies (as a whole) should be under-/over-weighted in your portfolio? Why?

I personally just shove a certain percentage of my portfolio into non-US stocks and bonds, and of that allocation a certain fraction goes into "established" economies and a certain fraction into "emerging" ones. I do all this with just a few basic index funds, because the indices make sense (to me) and index funds cost very little.

  • 1
    +1. For a casual investor just looking to diversify into emerging markets as a sector, index funds are the way to go (just like for most other sectors). – BrenBarn Aug 12 '14 at 19:04

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.