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These could be better bets in a post-Brexit world

Group of workers at a small parts manufacturing factory in China.
Mick Ryan | Getty Images

While many investors have shunned emerging markets for their volatility, the post-Brexit world has made them suddenly much more attractive.

Some fund managers have low exposure to emerging markets, having pulled out of and stayed out, as concerns about a sharp slowdown in Chinese economic growth weighed on the outlook.

After the U.K. vote to leave the EU put European growth in question, a global flight-to-quality trade has helped send the to all-time highs and long-end U.S. Treasury yields to .

Now, many analysts are concerned about how much further those gains in U.S. assets can go. If the Federal Reserve remains on hold and the dollar stays steady, several strategists see opportunity in diversifying to emerging markets where growth forecasts remain higher than those for developed markets.

"Having exposure to emerging markets is now part of having a balanced portfolio," BlackRock's global chief investment strategist, Richard Turnill, said Tuesday at the BlackRock Investment Institute's roundtable on the midyear global investment outlook.

The asset manager's report highlighted "growing" conviction on emerging market equities as "currencies and trade balances have adjusted, and we see less risk of a sharp U.S. dollar rise."