Are Emerging Market stocks the next best bet?

As emerging market bonds enjoy success, many expect emerging market stocks to be the next best bet in the market.

The bonds, which have gained more than 12 per cent this year so far, are preferred for their above average yield yet come with more credit risk.

The top three emerging market bond ETFs are: iShares JP Morgan USD Emerging Markets Bond ETF; VanEck Vectors JP Morgan EM Local Currency Bond ETF; and Powershares Emerging Markets Sovereign Debt Portfolio.

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Emerging market local currency bonds have also performed well as they allow investors preferred flexibility to adjust exposure to credit and interest rate trends in addition to foreign exchange momentum.

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Read more at ETF Daily News.