ETF: Play an emerging markets comeback for cheap

NYSE exchange floor
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NYSE exchange floor

The inability of emerging markets to get up off the floor is stunning to me. Since the start of 2007, emerging market economies have gone gangbusters. Net GDP growth from 2007-14 by country are as follows:

  • China: 279 percent
  • India: 118 percent
  • Taiwan: 30 percent
  • South Africa: 29 percent
  • Brazil: 112 percent
  • Mexico: 33 percent
  • Russia: 88 percent

But broad-based emerging market ETFs like the Vanguard Emerging Markets ETF (VWO) are essentially flat over that same timeframe. So what should you do now?