Emerging Markets Take a Tumble
After investors jumped in, a reminder of just what "volatility" means
By Janet Paskin

(MONEY Magazine) – Following years of outsize gains, emerging markets stock funds lost big in May. If you were among those who poured $13 billion into them earlier in the year, it's gut-check time. "Emerging markets can make you very happy or very queasy," says Lipper senior research analyst Don Cassidy. Among the MONEY 65, three funds in that category were the month's biggest losers. Index trackers Vanguard Emerging Markets Stock and Emerging Markets VIPERs (an exchange-traded fund) were off 11%, as was actively managed SSgA Emerging Markets. What happened? The specter of rising interest rates spooked investors, since emerging economies depend on easy credit to fuel expansion. Long-term prospects for developing countries still look great, however. Just remember: The ride can get rough.

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OUR LIST OF RECOMMENDED MUTUAL FUNDS

NOTES: As of May 31. N.A.: Not available. [1] Annualized. [2] Audited and annualized figures except on Fidelity. [3] Includes a waiver. SOURCES: Lipper, New York, 877-955-4773; the fund companies. [UP] Up 10% or more for the month. [DOWN] Down 10% or more for the month.

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.