Interest in emerging markets has been growing and investors are now looking out for sectors and stocks best placed to benefit. "Emerging markets are too important to ignore," says Malcolm Dorson, a senior portfolio manager at the U.S.-headquartered Mirae Asset, which has around $600 billion in assets under management. "Emerging markets have a multi-decade story with significant opportunities. They offer very discounted valuations with potential outsized growth," he told CNBC Pro. More than 4 billion people live across emerging markets, Dorson noted, adding that each country will have "significant domestic consumption stories [and] long-term opportunities." One of the simplest routes to investing in emerging markets is through exchange-traded funds. Here are four markets — and ETFs — that Dorson is betting on. India: 'Best structural story' High on Dorson's radar is India, one of the most watched markets. "India is the best structural story in emerging markets. It is a market I want as a base in my portfolio to pay the tuitions of my children and grandchildren," Dorson said, naming the Global X India Active ETF (NDIA-US) as one to watch. Dorson's fund house is one of India's largest foreign asset managers, and owns Global X. The Global X India Active ETF has around $18.6 million in net assets across 30 shares . Companies like Infosys , Reliance Industries and Tata Consultancy are in its top holdings. The ETF has returned around 12%, according to FactSet data, underperforming the 18.7% gains by its benchmark MSCI India Investable Market Index. Brazil: An 'inexpensive' market Brazil is another "interesting" market as it is "very inexpensive right now," Dorson said. The South American country paused an interest rate-cutting cycle in June, but could implement more cuts if the U.S. Federal Reserve does so, he added. Citing past cycles, the portfolio manager noted that "Brazilian equities tend to rally by 5% for a 1% weaker move of the Brazilian Real vis-a-vis the U.S. Dollar." Dorson is playing the Brazilian market with the Global X Brazil Active ETF (BRAZ-US) which has a "concentrated focus on growth at a reasonable price." The ETF is around 15.2% lower in the year to date. Its benchmark MSCI Brazil IMI index is down 16.1%, according to FactSet. Argentina: An economic revival Argentina is another South American market that Dorson likes. Referring to President Javier Milei's economic plans, Dorson said "his take on cutting subsidies and costs and raising taxes will slow … the economy but this difficult medicine is exactly what the country needs to grow." Milei is seeking to revive Argentina's economy through a new bill offering initiatives like investment incentives and the overhaul of taxes. The country's economy has been growing as monthly inflation figures comes down and the country continues to post fiscal surpluses, Dorson said. He is playing the market with the Global X MSCI Argentina ETF (ARGT-US), which he says invests in the nation's " largest and most liquid securities ." Year-to-date, the ETF has gained 13.6% as at July 23, while its MSCI Argentina IMI benchmark logged 29.1% gains, according to FactSet. Greece: 'Best value-oriented opportunity' Over in Europe, Dorson sees opportunities in Greece given its "strong margin of safety from a valuation perspective." "Greece is probably your best value-oriented opportunity. Greek banks trade at 0.6 times book value and the whole Greek market trades at about 0.9 times book value," he said. Greece's credit rating was raised to investment grade last year by S & P and Fitch Ratings while Moody's has upgraded it to a notch below investment grade . And Dorson expects it to be upgraded to a "developed market" in the next two years. The optimism on Greece comes as its economy recovers from a years-long debt crisis and is forecast to grow nearly 3% this year, outpacing the euro zone average of 0.8% . The ETF has returned around 16.12% so far this year, according to FactSet data, more than the 15.7% of its MSCI Greek IMI benchmark.
