As developed economies stagnate under the burden of rising unemployment and deteriorating fiscal situations, investor interest in emerging markets continues to climb. The gap in growth potential between the developed and emerging worlds has never been wider, while the gap in risk has perhaps never been more narrow. Through the first nine months of 2010, cash inflows into the Emerging Markets ETFdb Category topped $20 billion, or nearly twice the amount that flowed into domestic equity ETFs. The majority of cash inflows are into broad-based funds linked to cap-weighted indexes dominated by mega cap firms, such as the MSCI Emerging Markets Index (both EEM and VWO–aggregate assets of more than $81 billion–seek to replicate this benchmark). But many investors are now beginning to realize that the exposure offered by large cap-heavy ETFs doesn’t necessarily line up with the thesis behind an investment in emerging markets and the factors responsible for impressive [...] Click here to read the original article on ETFdb.com. Related Stories: Emerging Global Launches Emerging Market Consumer ETF (ECON) ETFs To Play The Emerging Markets Consumer Emerging Markets ETFs: Where’s The Consumer Exposure?