How to Play It Without Getting Your Hands Dirty
So, how does one get a piece of this action without booking a flight to Mumbai and trying to pick a winning bank? Frankly, that sounds like far too much work. A far more sensible approach, in my view, is to look at exchange traded funds, or ETFs. They allow you to buy a slice of the entire market, diversifying your risk across dozens of companies and countries.
You could look at a broad fund like the iShares MSCI Emerging Markets ETF (EEM), which gives you a stake in the biggest companies across all the key growth economies. It’s a simple, one stop shop. For those who watch the pennies, the Core version (IEMG) does a similar job but with lower fees, which is never a bad thing. If you want to be more direct, a fund like the iShares Global Financials ETF (IXG) focuses squarely on financial institutions, many of which have significant and growing operations in these high growth regions. It’s about choosing your weapon for the job.