Investing in Emerging Markets

[Bubbagump]

I'm relatively new to investing. Currently I have a 401K through my job that accounts for 75% or my total portfolio. In addition, I've also got a Roth IRA with 10% and a scottrade account with 15%. My 401k and and Roth are invested soley in mutual funds and I have been using my Scottrade account to invest in stocks. Currently my porfolio is 100% invested in domestic(US) stocks or mutual funds and I'm looking to move some of it into a foreign investment. I was thinking about India. Anybody else have anything invested in this country? What are your thoughts on the countries economy? Anybody have any better recomendations for a foreign investment?

Thanks,

Bubba

[Oak Bull]

Do you like India as an opportunity for large short term returns, or are you more interested in diversifying globally?

Many "experts" argue that India has a financial infrastructure that will be able to support more rapid economic growth than other "emerging" countries. Of course they could be wrong, although results have been pretty positive recently.

Another issue is how closely can you afford to manage your investment?

One advantage of using a general international or developing markets mutual fund is that the money will be actively monitered by the fund's management team. They will probably be more aware of the economic and political situations overseas than you can be, and will get out of certain countries or regions if things start to get ugly. Since emerging countries are generally more volatile than developed ones, this can be especially important.

Again, the first step is to determine what your objective is for this portion of your portfolio. There are many good options for participating in global economic growth, and choosing the right mix depends on the specifics of your situation.

[MowrMowr]

China > *

[KaneKungFu123]

careful latin america with all the socialists.

[terminated]

I like VWO, the Vanguard Emerging Markets ETF. It tracks an emerging market index of 500 stocks in various countries. However, this [censored]'s been on a tear, so a pullback is likely in the near future.

[Bubbagump]

[ QUOTE ]
Do you like India as an opportunity for large short term returns, or are you more interested in diversifying globally?

Many "experts" argue that India has a financial infrastructure that will be able to support more rapid economic growth than other "emerging" countries. Of course they could be wrong, although results have been pretty positive recently.


[/ QUOTE ]

I consider myself a long term investor. I am looking to put a percentage of my overall portfolio into either a fund or ETF that covers a broad range of global markets for diversification purposes. But I was also considering putting a small portion of that money into something that specifically covers India as a short-term speculative play.

[ QUOTE ]
Another issue is how closely can you afford to manage your investment?

One advantage of using a general international or developing markets mutual fund is that the money will be actively monitered by the fund's management team. They will probably be more aware of the economic and political situations overseas than you can be, and will get out of certain countries or regions if things start to get ugly. Since emerging countries are generally more volatile than developed ones, this can be especially important.


[/ QUOTE ]

Good points. Right now I'm managing my portfolio pretty closely. Mainly because I'm new at this and am trying to learn as much as possible. That may change in the future. But I'm also fairly young (36) and am willing to accept a higher level of risk for a small percentage of my overall portfolio.

[MowrMowr]

TREMX is something to look at also. As of the latest quarter, they are 33% Russia, 26% Turkey, 16% Egypt if those are markets you're comfortable with. Their 3 year return is something ungodly like 400%.

[ChromePony]

I'm looking at throwing some money into one of these, can anyone help clear up the difference between VWO and VEIEX which is the vanguard emerging market index.

VEIEX has a .5% fee on both ends of the transaction, and a $10/yr penalty for having less than 10k.

VWO seems like it is sold flat commission, I believe ~$25, probably on each end as well

Is this accurate? How about differences in the funds themselves, and what might be best for someone like me with about 5k to put in a more specific fund than S&P...all information is appreciated, clearly I dont know a whole lot. Thanks,

[ChromePony]

Just as quick bump.

I think I understand the differences between indexes and ETFs, but Im not sure if Im missing something because I really dont see a reason to pick one versus the other.


[ QUOTE ]
I'm looking at throwing some money into one of these, can anyone help clear up the difference between VWO and VEIEX which is the vanguard emerging market index.

VEIEX has a .5% fee on both ends of the transaction, and a $10/yr penalty for having less than 10k.

VWO seems like it is sold flat commission, I believe ~$25, probably on each end as well

Is this accurate? How about differences in the funds themselves, and what might be best for someone like me with about 5k to put in a more specific fund than S&P...all information is appreciated, clearly I dont know a whole lot. Thanks,

[/ QUOTE ]

[Mr. Now]

You can trade ETFs intraday. You can short them. Etc. Any order type that is valid for stock is valid for ETF.

These are the essential differences.