E*Wade

More on Emerging Market ETFs EEM vs. VWO

Over the long haul (8+ years), Actively Managed Open-End Emerging Market Mutual funds have AVERAGED more than 300 basis point returns over indexing, which far outweighs the cost of 50 to 100 basis points in expenses. Sure, low cost Developed Market ETF's are a no-brainer, but I'm not sure I'm ready to trust political risk, purchasing power risk, currency risk, et cetera, inherent in emerging market investing, to indexing. Lack of transparency in those lesser known markets make the cost of active management worthwhile. Lastly, choosing a fund company with vast research and management resources is vital to going the active management route. Fidelity's Diversified International & Emerging Markets Funds are two standouts. Cheers!