Emerging Markets Are Cheap: This Dividend-Weighted ETF May Beat The Cap-Weighted Index (DGS, DEM)

Summary

By all measures emerging market value is the cheapest major asset class as demonstrated in the famous GMO bar chart of asset classes.
The quantitative and value-based GMO view is affirmed by a comparison of Vanguard’s emerging markets fund to Vanguard ETFs representing several other asset classes.
Emerging value must be backed into by using factors such as high dividend yield and avoiding cap weighting; comparison to Vanguard emerging suggests three funds for consideration.
The risks of emerging markets differ from those of other asset classes, but the risks are well known; I suggest reducing China risk with strategies deemphasizing its large tech/internet stocks.
The right allocation for emerging value depends upon individual perspective on risk. Around 10% is conservative, but at current valuations up to 20% is OK for an informed risk taker.