For the year to date through Oct. 31, investors poured $33.7 billion into diversified emerging-markets funds and ETFs, the fifth most popular fund category. And what do they have to show for it?
So far this year, not much.
After an 18% category return in 2012, diversified emerging-markets funds are essentially flat year to date, while the S&P 500 is approaching a 30% return over the same time period.
Is this just another case of investors' bad timing? Were we oversold on the growth promise of developing economies? And are new risks emerging as China undergoes big changes and the Fed begins tapering its stimulus programs?
During Morningstar.com's Emerging-Markets Week, we'll cover the basics, deliver tips for including developing-markets exposure in a long-term portfolio plan, forecast the prospects for EM, and of course offer up some of our favorite investments for emerging-markets investors.
Stay tuned each day this week as we post new reports to this page.
Emerging Markets 101
What is an emerging market, and what do you get when you buy a diversified EM fund? Plus, learn why economic growth doesn't equal portfolio growth, and understand the risks associated with frontier markets.
- What's an Emerging Market, Anyway?
- Economic Growth Doesn't Equal Portfolio Growth
- Don't Make Emerging Markets Your Investing Blind Spot
- Is 'Frontier' the New 'Emerging'?
Strategic: Portfolio Planning and Emerging Markets
How much emerging-markets exposure do you need (and do you already have it)? Plus, chart the fund flows into emerging-markets vehicles, understand how currency risk affects you, and learn how investors are rethinking the ways in which they get exposure to emerging markets.
- How Much Emerging-Markets Exposure Do You Need? (And Do You Already Have It?)
- Knowing Where to Look
- Individual Investors Stick With Emerging Markets
- How Currency Risk Affects You
- Archive: You May Have More in Emerging Markets Than You Thought
- How Do You Approach Emerging Markets?
Tactical: Emerging Markets' Prospects Today
After a streak of disappointing performance, are emerging markets cheap today? Plus, get expert insights on China's secular changes, the Fed's impact on emerging markets, and potential pockets of opportunity in the developing world.
- Emerging Markets Not Really a Bargain
- Emerging Markets: Great Potential for the Patient
- Picking Spots in Emerging Markets
- Health Care the Next Chapter of China's Growth Story
- Ranking Economic Vulnerability in Emerging Markets
- Brighter Days Ahead for Emerging Markets?
- Rek Report: Are Emerging Markets Now a Danger?
Our Emerging-Markets Stock Picks
Get our favorite emerging-markets stocks today for both direct exposure and through multinational companies. Also see our favorite emerging-markets stock funds and diversified foreign funds that give you EM exposure, plus our top picks in factor-based emerging-markets vehicles.
- Kinnel's Fund Picks for Emerging Markets
- The 'Chicken' Approach to Emerging Markets Could Be Just the Ticket
- Factor Investing in Emerging Markets
- The Safer Play on Emerging Markets
- Prescribe to Pharma for Emerging-Markets Growth
Brush up on emerging-markets bond basics, including the different types of EM bonds, and get our top emerging-markets bond mutual fund and closed-end fund picks.