With all the
media attention directed at emerging
markets, investors have been investigating options for investing in
emerging markets funds. Although specialized hedge funds exist, these
are geared towards higher net worth individuals. These funds can also
attract processing fees for entry and exit. Mutual funds can also be
higher cost investment vehicle that are subject to sign up and
redemption fees.
With the advent of
exchange traded funds, investors now
have a lower cost way of participating in emerging market funds. These
funds are traded on the exchange in much the same way as stocks. You
can purchase a position to go long, short, margin lend and use as part
of a hedging strategy. The costs are the same as for buying and selling
stocks. Data is readily available through most data vendors and
quotations and research can be sourced over the internet.
With the economic
woes currently confronting the US,
investors have been looking more and more to invest offshore. With
India, China, Russia and Brazil enjoying fast growth rates, many
emerging markets stock index funds have been listing on the exchange
with mandates that include holdings of stocks in these fast growing
regions. The following represents some avenues for investors who are
looking to invest in emerging market funds.
