Forget the BRICs: How to Invest in Emerging Markets

Decoding the BRICs, growth markets, and frontier markets.

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[See 12 Reasons to Invest in Africa.]

For investors interested in the new "growth markets," there are two country-specific options: iShares MSCI Mexico (EWW) and iShares MSCI South Korea (EWY). Remember, the more specialized and focused an ETF is, the more risky and volatile it becomes. Lydon also points to a few small-cap, country-specific funds: IQ South Korea Small-Cap (SKOR), EGShares India Small-Cap (SCIN), Guggenheim China Small-Cap (HAO), and Market Vectors Brazil Small-Cap (BRF). These funds may only be appropriate for the most sophisticated investors.