This article originally appeared on ETF Daily News. The link can be found here.
Investors who put their money into emerging markets back at the beginning of this decade have been rewarded with…well, pretty much nothing! An investment in the iShares MSCI Emerging Markets ETF (NYSEARCA:EEM) at the beginning of 2010 would have produced a total return of -2.3%.
During that same time frame, the S&P 500 has returned more than 116%.
But the tides may be beginning to turn. Emerging markets are up 15% in 2016, while dividend paying emerging markets equities are performing even better. Investors reaching into equities for higher yields are pushing the valuations in traditionally conservative areas like utilities and consumer goods to very rich levels making them less attractive on a relative basis. Long-term bonds look even worse following a decades-long bull market and the Fed poised to begin lifting