As investors increasingly look to the emerging markets, investment choices have grown significantly. Rather than the standard broad-based, all-encompassing emerging market equity strategies of yesterday, we’re seeing investors looking to explore and understand more finely tuned exposures to this asset class.
The emerging markets have been one of the bigger disappointments in terms of performance over the last few years, but there are pockets of opportunity, with some regions displaying fewer imbalances than others.
With the plethora of emerging market equity indexes that have come into existence, there are more options for fine-tuning the type of emerging market exposure desired.
In a prior blog, my colleague looked at the dividend yield of the MSCI Emerging Markets Index (MSCI EM) as a potential indicator of the emerging markets being “inexpensive.” Here, I turn to the price-to-earnings (P/E) ratio —specifically the P/E ratio of sectors and countries within the MSCI EM.