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11 Ways To Play Emerging Markets

FYI: Emerging markets look relatively inexpensive right now. Here are Morningstar analysts' best ideas.
Regards,
Ted
http://news.morningstar.com/articlenet/article.aspx?id=663002

Comments

  • Yeah ...

    Somehow I find it depressing that you can sit atop the world's most extensive collection of mutual fund data and probably the world's largest fund analyst corps and all you manage to ferret out are two huge funds standing in plain view.

    American Funds New World (NEWFX): $25 billion and a decent record as an EM fund over all trailing periods, especially given its muted volatility. One minor downside is that it doesn't particular invest in EM stocks conventionally conceived. By M*'s tracking, a third of its money is in EM stocks and two-thirds elsewhere. Where elsewhere? Toyota, Nestle, Novo Nordisk, Cummins Diesel, Samsung, Prudential ... The argument, of course, is that these firms sell a lot to the emerging markets but, Ms. Benz agrees, it might not be the best way to get EM exposure which leaves us with ...

    T. Rowe Price Emerging Market Stock (PRMSX): $7.8 billion and an utterly undistinguished record under its current manager. Since his arrival in September 2008 the fund has modestly trailed its peer group and the corresponding Vanguard index fund but does not seem to have compensated for that with noticeably lower volatility.

    Their only regional fund is Matthews China (MCHFX), at a sprightly $1.2 billion. On whole, I suppose if I want to pursue regional exposure in Asia I'd argue from a more broadly focused Matthews fund.

    Oh well, back to working on this afternoon's class.

    David
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