ETFs are so-called passively managed products that give investment exposure to a similarly wide range of countries and regions as country funds but carry much lower management costs because they are composed of the same securities as various market indexes. And the longer-term record of these funds isn't enticing. See a table of Tracking Exchange-Traded Portfolios Still, country funds can offer a viable option for investors looking for deals amid the current investment gloom. In the closed-end fund market, you can buy a lot of assets for less than a dollar. Mr. Perry is among those who note the structure of closed-end funds gives them an advantage during a severe market downturn like the current one.
Diversification is another strong point cited by country-fund supporters.
He still cautioned that a steadier global economy and more investor appetite for risk will be needed before emerging markets can begin to recover more significantly. This would help delay possible tax implications if a fund rises significantly. During the first quarter, for example, the Mexico Fund proposed a plan to repurchase shares in the fund as often as every quarter. But while investors may benefit from these moves, they also mean that the number of shares in closed-end funds and the number of funds themselves are shrinking rapidly. Inc. All Rights Reserved.