I think it is great that Claymore is out with the first broad market emerging market ETF in Canada. But I have minor quibbles as I note in today's post on the blog.Claymore Investments has just unveiled its new Broad Emerging Markets ETF, to go with its pre-existing BRIC ETF, which of course was focused just on Brazil, Russia, India and China. The fee is higher than the equivalent Vanguard fund but it's hedged back into the Canadian dollar.
I know Emerging Markets got hammered more than most regions in the last 6 months but my impression is it's a region that may also recover more robustly if and when a recovery is enduring. The long-term growth story is well known but perhaps overly hyped?
Details in my blog today:
While a good case can be made that emerging markets will experience rapid economic growth, it remains to be seen if such growth will translate into excellent stock market returns. Still, a market weighting of emerging markets in proportion to their float-adjusted market capitalization is certainly warranted. But I expect that this will remain a very volatile asset class.