Four Under Appreciated EM ETFs to Consider

So many emerging markets ETF, so little time. Seriously, ETF investors know there's a dizzying array of options for accessing emerging markets. Even with a lineup of funds that seemingly grows by the day, two ETFs dominate the emerging markets landscape and they do the same thing.

Of course, we're talking about the Vanguard MSCI Emerging Markets ETF (NYSE: VWO) and the iShares MSCI Emerging Markets Index Fund (NYSE: EEM). Combined, that pair has over $81 billion in assets under management.

They're known quantities to many investors, maybe even downright “safe” if there's such a thing with EM ETFs. That doesn't mean they're the best funds though. Check out this list of unheralded EM ETFs that investors with broader time horizons should take a look at.

Global X FTSE Andean 40 ETF (NYSE: AND): The only combination Chile/Colombia/Peru ETF on the market today, the Global X FTSE Andean 40 ETF has basically been in stealth mode since its February debut. An asset haul of over $6.6 million ensures AND will survive for a while, but that number is bound to grow as investors realize there's far more to LatAm investing than just Brazil. All three of the economies represented by AND have big-time potential and far better inflation situations than Brazil.

EGShares Telecom GEMS ETF (NYSE: TGEM): Even newer than AND, the EGShares Telecom GEMS ETF made its debut in June and is shaping up to be an unheralded EM play for conservative investors. And don't sell TGEM short. It has outperformed EEM over the past three months. Home to 29 stocks, China, Mexico and South Africa account for over 46% of TGEM's weight.

Guggenheim International Small Cap LDRs ETF (NYSE: XGC): We're not going to lie. The Guggenheim International Small Cap LDRs ETF has been a slack performer over the past three months. That said, if the combination of emerging markets and small caps comes back into style, this is one ETF you'll want to be aware. China, Brazil and Mexico combine for over 61% of the ETF's weight. An expense ratio of 0.45% is decent for this genre.

iShares MSCI Emerging Markets Minimum Volatility Index Fund (NYSE: EEMV): We highlighted the iShares MSCI Emerging Markets Minimum Volatility Index Fund on Wednesday as a valid low volatility EM option and said that investors have bought into that thesis as EEMV has over $10.3 million in AUM after debuting on Oct. 18. There's some data available on EEMV now. China, Taiwan, South Korea and Brazil account for over 52% of the fund's weight. EEMV holds 190 stocks and the top-10 represent just 15.82% of the ETF's total weight.

Bull case: Obviously emerging markets need to be favored again, perhaps voraciously, to jolt these ETFs. EEMV and TGEM would be the picks to consider for truly conservative investors.

Bear case: Europe stumbles more and inflation continues to stymie Brazil and China.