List of Emerging Market ETF with Advantages and Disadvantages of investing in Emerging Market ETF
In this article, we are going to provide a detailed List of Emerging Market ETF’s and also list out the advantages and Disadvantages of investing in Emerging Market ETF’s

Emerging Market ETF List

Let’s start with some basic details about the Emerging Market ETF’s

Emerging Markets ETF is an investment option that lets the investor exploit the prospects of emerging economies. This lets the investors to invest indirectly in a country and generate profit in turn.

Some of the ETFs are listed below which are worth investing:

The first ETF in our list is Market Vectors Indonesia ETF (NYSE: IDX):
This ETF is for Indonesian market. Indonesia is considered world’s fifth best performer.
In past one year, it has shown a steady growth of 20%, which is very good. Besides this,
Indonesian market is perceived to be far more reliable on comparison with other emerging markets.
The next name that comes after IDX is the iShares MSCI Indonesia Investable Market Index Fund (NYSE: EIDO).

The next ETF in our list of emerging market ETF is iShares MSCI Thailand Investable Market Index Fund (NYSE: THD). This ETF is for Thailand market along with Indonesia the Thailand market is also expected to give positive returns in this year 2011. If you go by numbers and calculations, the price-to-book ratio for Thailand stands at 2.24 times which is very good.
If we look at last year’s records, then Thailand stock market has given 12% upward returns compared to similar MSCI world index which reported a loss of 2.5%

The next ETF is Global X FTSE ASEAN 40 ETF (NYSE: ASEA).
This ETF is the best suggestion for those who are confused between Indonesia
and Thailand. ASEA is the best option to invest as Thailand and Indonesia contributes
about 20% of the total weight of the ETF.


The next ETF in our list is Global X FTSE Colombia 20 ETF (NYSE: GXG).
The two major factors which affects this ETF are Declining prices of oil and weak Brazilian stocks.
There is no cure for the oil prices as well as Brazilian stocks. Columbia is planning to decouple from Brazil.
Even though GXG is facing these problems, it is the best or we can say it is the least bad among other LatAm country ETFs.


The last ETF of our list is iShares MSCI Philippines Index Fund (NYSE: EPHE).
This ETF is for Philippines, but it bears only a small portion of ASEAN group.
EPHE is considered as the best and the only possible way to get pure benefit of
Philippines economy. Since one year, this ETF has sharply outperformed among the four
major ETFs of BRIC countries and has faced only 2% decline in this period of time.

Now we'll talk about the Advantages and Disadvantages of Emerging Market ETF investments:

The main features which attracts investers to invest in emerging economies are as follows:
- labor is inexpensive.
- They sustain well in difficult times.
- Cash flow is comparatively good.
- There's always a chance for growth.
- The work force is willing.

Advantages of Emerging Markets ETF:
The advantages related to these ETFs are listed below:
- Since, there are differences in local and foreign markets. If we don't find profit in one economy or if we face any losses, then it can be recovered by investing in other economy.
- The value of the ETFs’ depends upon the emerging economies. Thus, any fluctuation in them increases as well as decreases the value of ETFs.

Disadvantages of Emerging Markets ETF:
The disadvantages of these ETFs are:
- In difficult times like recession, the decreased money flow can limit the growth of emerging market and the impact can be seen directly on the value of the ETF.
- If the ETF has two or more markets which are interlinked together of they depend on any common market,
then even a small small fluctuation in any one of them will create a big turbulence on the rest of the markets.

Even with all these disadvantages, the traders have invested in the emerging markets ETFs due to their promising returns and continue to do so