According to UBP (Union Bancaire Privée), the upside potential of emerging markets is far from being exhausted, especially because the small caps have not yet taken off. Indeed, the cycle of local consumption has not yet recovered.
Emerging small cap stocks could therefore benefit from the evolution of the economic cycle of their zone in the future given their high exposure to their domestic market.
This theme can be played through several ETFs: SMIN (iShares, in USD) replicates a Small Caps Indian Index, HAO (Guggenheim, in USD) a Chinese Small Caps Index, and BRF (VanEck, in USD) a Small Caps Brazilian Index .
BRF (VanEck Vectors Brazil Small Cap ETF) : weekly data
