It's worth paying another 50 or 60 basis points in expenses for a good ETF product not tracking a vanilla index, says RiverFront Investment's Rod Smyth at a Barron's ETF roundtable. One favorite in emerging markets is PowerShares' FTSE RAFI Emerging Markets Portfolio (PXH) which tilts towards factors like book value and cash flow and offers bigger weighting to sectors like energy. Bullish on Japan, his pick is WisdomTree's Japan SmallCap Dividend Fund (DFJ). Another favorite is PowerShares' FTSE RAFI Developed Markets Ex-U.S. Portfolio (PXF).
Emerging markets ETFs: EEM, VWO, DEM, EDC, DGS, EDZ, EEMV, EEB, SCHE, EDIV, DVYE, IEMG, BIK, BKF, EEV, EWX, PIE, CEW, ADRE, HILO, EUM, FNI, EET, GMM, EEMS, PXH, EELV, BBRC, FEMS, EMDD, EEME, BICK, EMCR, DBEM, EWEM, JEM, FEM, EVAL, TLTE, EMLB, EEHB, EGRW, EMSA, EMFT, EMHD, EMDR, FNDE