In 2009, most emerging markets funds doubled in value from the March lows. In 2010, returns have been closer to developed markets. The iShares MSCI Emerging Markets ETF is only up 1.9% year-to-date versus the FTSE 100's 4%, but has gained 78% on a 12 month basis. The actively managed and top performing Templeton Emerging Markets investment trust (TEM) run my Mark Mobius is up 7.4% year to date (98% on a 12 month view), three and half times the exchange traded fund, partly because the EFT is a dollar denominated fund and the dollar has signficantly strengthened against the pound in recent months . In this weekend's Barrons, Mobius says "If you're coming in now, make sure you dollar-cost average, and be ready for corrections," but Mobius expects emerging markets to post gains "in the teens or double digits in 2010, even with corrections along the way."
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