Vanguard MSCI Emerging Markets ETF (VWO), S&P 500 (.INX): Could Emerging Markets Finally Bounce Back?

But the troubling thing about how tenuous that rally seems to be is that the ETFs weren’t able to follow through with gains on Friday, even though U.S. stocks posted modest advances.

Until emerging markets are able to convince battle-scarred investors that they can put together a broad-based long-term recovery, investors are likely to be dubious about their prospects. Moreover, the U.S. market has been so easy to make money in that there doesn’t seem to be much reason to expand your horizons to seek out profits. As long as that trend lasts, emerging markets could continue to underperform badly compared to domestic stocks.

The article Could Emerging Markets Finally Bounce Back? originally appeared on Fool.com is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter: @DanCaplinger. The Motley Fool has no position in any of the stocks mentioned.

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