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Tickers in this Article: VWO, CHL, TEVA, EEM, GMM, PXH
President Obama's April 14th speech on the economy reminded viewers that the U.S. housing bubble led to global recession. He touched upon the importance of emerging markets as steps towards recovery. While the S&P 500 Index is the benchmark, many professional investment advisors rely on the performance of the investments they choose, while others expand their portfolio mix by including emerging market ETFs. Let's take a look at the components of a top emerging market ETFs. (For a quick refresher on emerging markets, read What Is An Emerging Market Economy? and Finding Fortune In Foreign-Stock ETFs.)

Around The World With Vanguard
The Vanguard Emerging Markets ETF (NYSE:VWO) is one of the best options an investor can choose, given its low 0.20% expense ratio. The VWO fund has a regional focus heavily concentrated the Asia ex-Japan market and Latin America, with over 50% of its assets divided between South Korea, Brazil, China, Taiwan and South Africa. Top holdings in the VWO fund include Hong Kong-based telecommunications provider China Mobile (NYSE:CHL), the Russia-based oil and gas services company Gazprom and Israel's generic pharmaceutical provider Teva Pharmaceuticals (NASDAQ:TEVA).

Brief Highlights

Communications
China Mobile reported a 15.5% increase in operating revenue and a 29.4% increase in basic earnings per share for 2008 over the prior year. The increase in revenues was driven both by an increase in new subscribers from the rural market and expanded usage of value-added businesses like mobile video and mobile gaming.

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Oil & Gas Services
Led by sales of gas to far abroad regions outside of Russia and the former Soviet Union, Gazprom doubled its operating profits for the first nine months of 2008 over the same period the previous year. At the end of the third quarter in 2008, management stated concerns over the inaccessibility of capital and possible constraints to the company's future cash flow.

Generic Pharmaceuticals
Teva Pharmaceuticals is one of the world's top generic drug makers. Teva expects net sales between $14.1 billion and $14.6 billion in 2009, up from $11.1 billion in 2008. At the beginning of April, Teva began commercial shipment of its generic version of Shire Pharmaceutical's Adderall XR for the treatment of Attention Deficit Hyperactivity Disorder (ADHD).

Variety of ETFs
Emerging market ETFs, with a similar objective as the VWO fund, include the iShares MSCI Emerging Markets (NYSE:EEM), the SPDR S&P Emerging Markets (NYSE:GMM) and the PowerShares FTSERAFI Emerging Markets (NYSE:PXH).

Final Thoughts
The U.S. does not exist in a bubble and the same is true for investors who have the luxury of time on their hands to absorb the additional risks associated with investing in emerging markets. An investor's best approach involves building a diversified portfolio of investments, while including emerging market ETFs as a growth driver. (For further reading on this subject, see Re-Evaluating Emerging Markets.)

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