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In a global economy, where what happens in one country can have ripple effects around the world, investors are discovering the value of investing outside the United States. Emerging markets are countries that are in a strong growth phase, as opposed to more established nations that see more gradual growth. There are several benefits to investing in emerging markets; while this segment of the market is still viewed as risky, the higher returns often counter-balance this risk for investors seeking to jump-start their portfolio. The returns are also not necessarily correlated to the U.S. market, providing a diversification benefit [see also Free Report: How To Pick The Right ETF Every Time ].

While India, Brazil, China and other Asian countries usually receive the most press in terms of “emerging markets,” countries in Europe provide a whole other realm of potential. There are a number of Emerging Europe ETFs. providing access to countries like Russia, Poland and Turkey. These ETFs allow you invest in one particular country, or to invest in a group of emerging European nations.

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If you are looking to gain broad exposure to emerging European markets through one ETF, then you have two options:

• SPDR S&P 500 Emerging Europe ETF (GUR, B ): This fund invests in companies that are included in the S&P 500 European Emerging Capped BMI Index. It generally tracks the performance of the index, but may deviate since the fund doesn’t invest in all the stocks of the underlying index. The fund has significant weightings in Russia, Turkey and Poland, with small holdings in Czech Republic, Hungary, United Kingdom and the Netherlands. About one-third of the fund’s assets are in the energy sector [see Emerging & Frontier Markets ETFdb Portfolio ].

• MSCI Emerging Markets Eastern European Index Fund (ESR, B- ):  This fund seeks to correspond to the “general” price performance of the MSCI Emerging Markets Eastern Europe Index. This fund is slightly less diversified, having more assets in both the energy sector, and the vast majority of holdings are focused on Russia. The fund also has exposure to Poland, Czech Republic, Hungary and very small allocations in Ukraine and other countries.

Ticker Symbol ETF Assets Expense Ratio Largest Country Allocation Largest Sector Allocation