In a recent report, Dutram points to Turkey as "a rapidly growing country that often doesn't get the respect it deserves." Despite having GDP output that's larger than Taiwan's, the nation makes up just 1.3% of the MSCI Emerging Markets Index, while the latter country has a double-digit share.

One ETF, the iShares MSCI Turkey Investable Market Index Fund (TUR) offers exposure to about 100 Turkish market securities. Because it has more than 40% of its assets in financials, the ETF fell sharply last year. But Dutram believes that the Turkish market stands to benefit as the European debt crisis moves to the back burner and investors feel more comfortable with financial stocks.

Another focused play Dutram likes is Indonesia. Unlike export-dependent companies in Southeast Asia, he says, those in Indonesia rely mainly on domestic consumption and are less sensitive to slowdowns in developed world economies. Two ETFs zero in on this country: the Market Vectors Indonesia index ETF (IDX) and the iShares MSCI Indonesia Investable Markets Index (EIDO). (Dutram discloses that he has a personal investment in the Market Vectors ETF.)

Ned Davis research analyst Anthony Welch is bullish on Brazil, Russia, India and China, better-known over the last decade as the BRIC nations. "With a miserable year in 2011 behind us, we expect the BRICs to help lead the global market upward," wrote Welch in a report to clients in late January. He said these countries have demonstrated their ability to manage the delicate balance between controlling inflation and maintaining economic growth. For that reason, as well as the signs of stabilization among global economies, his outlook is optimistic.

BRIC markets also tend to have a high correlation to commodity prices, which the firm expects will rise this year. Although Welch does not make specific investment recommendations, the iShares MSCI BRIC Index fund (BKF), the Guggenheim BRIC ETF (EEB) and the SPDR BRIC 40 fund (BIK) all focus on the space.

An iShares report earlier this year points to Latin America as "our favorite region within emerging markets. We expect Latin America to post good relative growth this year." The report also notes that the region has good corporate-sector profitability and is less likely to default than some other emerging market countries, especially those in Europe, the Middle East and Africa.

The firm also likes Russia as "a short-term tactical play for more aggressive investors looking to increase emerging-markets exposure. Russia's economy continues to hold up well, reflected in Russia scoring well against other countries on leading indicators; it has little debt, and its core inflation is stabilizing."

The iShares S&P Latin America 40 ETF (ILF) and the iShares MSCI Russia Capped Index fund (ERUS) are two ways to implement those recommendations. Other options that focus on those locales include the Direxion Latin America Bull 3X fund (LBJ), which uses leverage, and the Market Vectors Russia fund (RSX).

First « 1 2 3 » Next