Along the way, the iShares FTSE China 25 Index Fund (NYSE: FXI ), the largest China ETF by assets, has surged 15 percent. Even after the stellar performances turned in by developing markets stocks over the past few months, the group remains inexpensive on a valuation basis, notes Koesterich. Assuming Brazil's inflation remains at current levels and the country's growth picks up this year as I expect, valuations have significant room to expand.