3 Choices for Those Expecting an Emerging-Markets Rebound
Innovative emerging-markets funds may catch the eye, but the traditional type has the edge for most investors.
Investors who believe that the sell-off in the developing world is a buying opportunity will find that they have an abundance of options. Indeed, as we wrote in our recent research paper, “The Growing Complexity of the Emerging-Markets Fund," there now are more than 300 funds in the diversified emerging-markets Morningstar Category (open-end and exchange-traded funds combined). A daunting task faces investors looking over this group. The emerging-markets equity-fund landscape now includes four separate varieties besides the traditional type of portfolio: geographically flexible offerings, small-/mid-cap funds, multiasset offerings, and frontier-markets funds.
William Samuel Rocco does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.