Emerging markets are something that should be in everyones investment portfolio. Emerging markets are developing countries that are starting to emerge into the global market. These countries will have low average household income when compared to developed countries. They will also have functioning stock exchanges.
One of the reasons to invest in emerging markets is the potential for rapid growth. But they are also higher risk. So one of the best ways to invest in emerging markets is buying an emerging market fund. My own investment choice is EEM. EEM is an exchange traded fund from iShares that invests in emerging markets. It has been one of the better performers in my Roth IRA.
By buying a fund, your investment dollars are spread over a variety if emerging market investments. This helps minimize the risk by diversification. So if one part of the investment turns bad, it doesn’t wipe out the whole thing.