FYI: Thirty years ago, emerging markets made up about 1% of world equity market capitalization and just 18% of GDP. As such, there was a very limited ability to invest in emerging markets—the few funds that were available were high cost, actively managed funds.
Today, the world looks very different. Emerging markets represent about 13% of global equity capitalization and more than half of the global GDP. And the costs of obtaining exposure to emerging markets has significantly decreased. For example, the expense ratio of Vanguard’s Emerging Markets Stock Index Fund (VWO) is just 0.14%.
Regards,
Ted
http://www.etf.com/sections/index-investor-corner/swedroe-dont-underestimate-emerging-markets?nopaging=1