Filed Under: , Tickers in this Article: NKY, EWZ, FXI, VWO, EEM,
IFN, VNM U.S. Investors poured a stunning $54 billion into
emerging-market exchange-traded funds (ETFs) in 2012, according
to research firm ETFGI. That's a stunning growth from just $3
billion in 2011. The two largest ETFs in the category, Vanguard
FTSE Emerging Markets ETF (NYSE: VWO) and the iShares MSCI
Emerging Markets Index (NYSE: EEM) now have a hefty $125 billion
in assets under management. Many investors have moved beyond
those catch-all funds, and are now focusing on country-specific
ETFs such as the iShares FTSE China 25 Index Fund (NYSE: FXI) or
the iShares MSCI Brazil Index (NYSE: EWZ). But many still don't
know about the two most important factors that will affect their
returns.   I'm talking about currency and inflation.  The
Nikkei's blunted rally While Washington was mired in year-end
talks over the "Fiscal Cliff," Japanese investors were breaking
out the champagne. A new government in Tokyo, promising to
provide a major stimulat