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International and emerging markets offerings are the coolest kids at the ETF party right now, favored in a big way over traditional long U.S. equity ETFs. International ETFs saw $5 billion in new inflows in November.

Vanguard Emerging Markets ETF (VWO) led all ETFs with $1.3 billion in new investments. Investors seem to prize Latin America and Pacific Rim ETFs.

There are plenty of other opportunities in the emerging markets ETF universe. In fact, investors can use dozens of country-specific ETFs to gain exposure to compelling emerging markets that don’t always grab headlines. One of those is iShares MSCI Turkey Investable Market Index (TUR). The investment thesis surrounding Turkey is worth considering. Given Turkey’s geographic proximity to both Europe and Asia, opportunities for trade are bountiful.

JPMorgan recently upgraded Turkish equities to “overweight” from “neutral,” saying that Turkey’s exporters will benefit from an economic recovery in Europe and the Middle East. Ratings agency Fitch followed that with an upgrade of its own, raising Turkey’s credit rating to just two notches below investment grade. They cite Turkey’s resilience to the global economic slowdown and the country’s access to credit markets.

These could be positive catalysts for TUR going forward. The ETF is volatile and made a big down move from a closing high of $55.37 in October to $44.60 in late November. December has been better; investors bid the ETF back above its 50-day moving average to a close of $50.93 today. If TUR can hold support at $50, it could continue to make its way higher. Even with the volatility, TUR is up nearly 90% year-to-date.

Investors should note the sector allocations within TUR. Nearly 52% of holdings are in the financial services sector. Industrial materials and telecom combine for another 26%. Even so, some analysts expect the ISE National 100 Index to test its record high of 58,864 in the next six to nine months. From there, the index could move as high as 63,000, which would be a boon for TUR.

It appears the table is set for TUR to join the ranks of more popular emerging markets ETFs. The outlook for Turkish equities may prove too alluring to ignore. TUR could deliver some tidy returns in 2010.