iShares has launched the iShares MSCI Emerging Markets Small Cap Index Fund.

“In the long-term,” said Russ Koesterich, iShares global chief investment strategist, “investors can look to emerging market small-cap stocks as the driver of the next wave of emerging market growth. In the short-term emerging markets may be more defensively positioned than conventional wisdom might suggest.”

The reason small-cap emerging market stocks may be better positioned than mid-cap or large-cap emerging market stocks, Koesterich said, is that these companies serve local consumers and are therefore cushioned from “issues facin developed markets today.”

The fund is benchmarked against the MSCI Emerging Markets Small Cap Index.