Small caps drive emerging market growth

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Investors are increasing their exposure to the emerging markets by investing in small cap ETFs tracking the region, according to a report by Standard and Poor's.

In the past six months, the iShares MSCI Emerging Markets Small Cap ETF has seen net assets shoot up from $70m to $212m. This compares to relatively sluggish growth of just $45m over the first year from its inception in March 2009. S&P vice president of global equities Alka Banerjee says the last ten years have seen a big change in the transparency of small-cap companies in emerging markets. For example, almost all have adopted international accounting procedures. While smaller companies get only limited exposure in the media, Banerjee says that the information is there if investors w...

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