Advisers Get Specific in Emerging-Markets Investing

Patrick R. McDowell, CFP®, AIF® was quoted in a Wall Street Journal article by Daisy Maxey discussing emerging-markets.

Financial advisers are getting pickier about how they put client money into emerging markets…

Patrick McDowell, a planner at Arbor Wealth Management in Miramar Beach, Fla., says he stopped using broad emerging-markets funds in 2008 or 2009, and now has little emerging-markets exposure. But he is now considering a small allocation to a few country-specific ETFs, including PowerShares India ETF, he says.

“The emerging-markets world is not what it used to be, and ETFs didn’t reflect that change until recently,” says Mr. McDowell, whose firm manages $110.2 million. “Pre-2008, you could buy almost any emerging-markets ETF and cash in on relentlessly dependable growth. It seemed like the population growth alone in most of these countries would power investment gains for a long time.”…