Investors should consider diversifying with emerging market ETFs, suggests Genia Turnanova, although the advisor cautions that investors should stay mindful of risks, as these markets are typically volatile. Here, the editor of Leeb Income Performance highlights two exchange-traded funds.

We believe SPDR S&P Emerging Markets Dividend ETF (EDIV) remains a good way to invest in the potential recovery in emerging markets.

Brazil is its number one country, with 22% of the ETF's total assets invested there. Other countries represented: China (13%), Taiwan (13%), South Africa (10%), Poland (10%), Turkey (8%), Thailand (5% on total assets), and more.

To ensure diverse exposure, no single country or sector has more than a 25% weight and no single stock has more than a 3% weight in the index. Top sectors are financials, with about 24% of the fund's assets, utilities with 19%, materials with 17%, and telecoms at 12%.

Stocks in the index trade at a forward P/E of ten, price-to-book ratio of 1.3, and a yield of 6.8% that collectively present an attractive relative valuation case.

WisdomTree Emerging Markets Equity Income ETF (DEM) is designed to track the performance of the high-yielding subset of the dividend paying segment of 18 emerging-markets nations.

Eligible companies are ranked by dividend yield and companies that are ranked in the top 30% are included in the ETF. Individual components are weighted based-on annual cash dividends paid.

The WisdomTree ETF should complement the SPDR S&P Emerging Markets Dividend ETF and it is also well diversified across countries and industries.

As opposed to the SPDR S&P Emerging Markets Dividend ETF, Brazil holds the number four place when it comes to the fund's total assets, with 9%.

The top three counties are Russia, accounting for about 20% of total assets, China (about 17%), and Taiwan (14%). South Africa, with 9% of total assets, holds the fifth place.

Top industries for the WisdomTree ETF are somewhat similar, with financials (26%), energy (21%), materials (18%), telecoms (17%), and utilities (6%) in the top five.

One key difference for the stock composition of WisdomTree Emerging Markets Equity Income ETF is that, unlike the SPDR ETF, the WisdomTree ETF does not have single stock position limits, resulting in higher individual weightings among its top ten holdings.

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