as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
system
emerging markets index fund (vdmix) for an inexperienced investor
user
in this environment, i don't think that it is advisable to buy a broad emerging market fund.  why? "emerging market" is too broad... look at the top 10 holdings of the fund... you're exposed to russia & brazil (oil driven), chinese and latin american banks and asian electronics manufacturing. those are sectors that don't correlate, in economies that are unstable -- a recipie for trouble unless you think that the global economy is heading way up. i would recommend focusing on the sectors that you are interested in (ie oil, electronics, etc) via a low cost vehicle like an index etf or invest using a actively managed emerging markets fund with a strategy that you understand.  don't invest a dime unless you understand what you are getting into. an index fund is just sorting companies by market cap. but... what does market cap mean when you are buying a chinese bank?
assistant