When we talk about emerging market equities today, we find that people are disappointed: there has been underperformance of late. Here, we use dividend yield to measure equity valuations, when searching for opportunities.
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.