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Passive ETFs Are Not The Answer To Emerging Markets Investing

FYI: When considering investments in emerging markets, many investors turn to passive exchange-traded fund strategies due to the common perception they offer a low-risk, inexpensive exposure to the equity markets of the developing world.

Passive ETFs are typically based on market capitalization indexes, with two popular solutions being Vanguard's FTSE Emerging Markets ETF (VWO) and iShares' MSCI Emerging Markets ETF (EEM). Historically these two funds account for a large portion of the inflows to emerging markets equities. Due to recent strong relative performance and favorable valuations, both are currently experiencing strong inflows, with VWO and EEM seeing a combined $4.1 billion of inflows quarter-to-date, as of Aug. 31
Regards,
Ted
http://www.investmentnews.com/article/20141015/BLOG09/141019960?template=printart
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