Investors in emerging markets exchange-traded funds have heard this before. Not long after the widely followed MSCI Emerging Markets Index began swooning in earnest five years ago, investors have continually heard that developing world equities are inexpensive relative to their developed market counterparts.
While that is true, compelling valuations have not been enough to bolster emerging markets stocks, nor have those discounts been enough to prevent advisors and investors from departing emerging markets ETFs.
Year-to-date, the Vanguard Emerging Markets Stock Index Fd (NYSE: VWO) and the iShares MSCI Emerging Markets Indx (ETF) (NYSE: EEM), the two largest emerging markets ETFs by assets, have lost about $3 billion in assets after losing over $9.4 billion combine last year.
In 2015, EEM and VWO were two of the four worst ...
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