Is it time for you to buy stocks in emerging market funds? A
leading strategist for Wells Fargo Advantage Funds (
) says he'd go for it.
[caption id="attachment_64620" align="alignright" width="300"
caption="Seoul, South Korea: emerging high-rise city"]
Wells Fargo Chief Equity Strategist John Manley said in
I'd be a buyer of stocks.
The U.S. economy is doing OK. Obviously, there are lots of things
that could go wrong. We're going to have to see more agreements in
Europe. Yet valuation is attractive, the market is cheap."
Recent events have been
bullish for emerging market funds
. The SPDR S&P Emerging Markets (
) emerging market fund is up. WisdomTree Emerging Market
) rose 2.32%. In the last week, the Vanguard MSCI Emerging Markets
) finished higher by 3.21%. The iShares MSCI Emerging Markets
) climbed 3.38%.
These emerging market funds in the form of exchange traded funds
(ETFs) offer advantages for investors who are heeding Manley's
advice. The most obvious advantage is diversity. GMM, DEM, VWO and
EEM let emerging market investors buy a broad array of stocks in
one bundle. It is usually much more efficient for an investor to
buy an emerging market fund than to try to copy its holdings.
ETFs also have many more resources than investors do. They can
do more research, and they have buying power. Emerging market funds
get better service and pricing than an individual investor ever
can. They can also protect against currency fluctuations.
Many of the stocks that Wells Fargo's
Manley is so bullish about
are contained in ETFs such as SPDR S&P Emerging
Markets, WisdomTree Emerging Market Equity, Vanguard MSCI
Emerging Markets and the iShares MSCI Emerging Markets
Index. Buying these and other emerging market funds is a sound way
for individual investors to profit from the attractive valuations
on the financial exchanges.