As the costs of emerging market equities plummet, investors are increasingly becoming able to buy into the market easily via exchange traded funds, Reuters reports.

With emerging market stocks for the next 12 months penciled in at an 8.8 price/earnings ratio, a mark lower than any period ever except for October 2002 and March 2003, a Morgan Stanley strategist told Reuters that buying ETFs is becoming attractive for investors, even if the reasons for the positive outlook are confusing.

"Something usually needs to go wrong to drive an asset’s valuation to near its historical trough," Hernando Cortina wrote in an Morgan Stanley research note. "In the case of emerging markets, however, more things appear to be going right than wrong, making trough valuations especially puzzling."

Because of low investment turnover, ETFs tend to have much lower expense ratios than mutual funds, making them what Morgan Stanley calls a "simple and cheap" way to buy into the markets.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.