ROAM ETF

Emerging markets have the potential to offer outsized returns, but many investors are understandably wary of the volatility of the asset class. Investors can navigate volatility in emerging markets by looking beyond traditional cap-weighted funds.

Wall Street is eagerly awaiting tomorrow's consumer price index report, which will offer insight into the fight against inflation. U.S. consumers' inflation expectations eased slightly in October, the Federal Reserve Bank of New York reported on Monday.

Asian stocks largely posted gains on Thursday, lifting multifactor ETFs, as investors awaited the release of U.S. consumer price data. Asia-Pacific markets climbed across the board, led by South Korean stocks.

Investors can use multifactor ETFs to safeguard portfolio gains achieved year to date. U.S. equities fell sharply last month, ending the third quarter in the red.

A challenged U.S. market highlights the value of diversification in a portfolio. Higher for longer interest rates, the automotive strike, high oil prices, and the possibility of a government shutdown again are all current headwinds for the U.S. economy.

The latest CPI print showed U.S. inflation accelerated for a second consecutive month in August. Consumer prices increased 3.7% in that month from a year prior, up from 3.2% in July, the Labor Department said on Wednesday.

Many investors are wondering if it's the right time to add exposure to emerging markets. With ongoing market uncertainty and the possibility of a recession, investors may be wary to add exposure to riskier segments of the market.

Many investors look to emerging markets for diversification benefits. While emerging markets can serve as a portfolio diversifier, investors shouldn't overlook concentration, however.

Emerging markets outpaced the U.S. market last week, highlighting the importance of challenging home country bias in client portfolios. The benchmark MSCI Emerging Markets index outpaced the broad U.S. market, measured by the Russell 3000, by nearly 260 basis points last week.