Morningstar warns that emerging markets ETFs are facing uncharted waters due to the pause in Russian stock trading.

Morningstar's Ben Johnson says that emerging markets-focused exchange-traded funds are in "uncharted waters" due to global exchanges and index providers pausing Russian stock trading.

The Russian stock market's closure and the New York Stock Exchange's halt of trading in ETFs and securities linked to Russia have left the future uncertain, according to Johnson, the firm's global head of ETF research, who spoke on CNBC's "ETF Edge" on Monday.

He stated that they would be creating things on the fly and they were currently navigating through unknown territory.

Johnson stated that currently, index providers and asset managers adhere to predetermined rules, which involve limiting or completely eliminating exposure to closed markets.

The trading of all five Russia ETFs listed in the US has been temporarily stopped due to regulatory issues.

Johnson stated that this development could have far-reaching consequences for markets, particularly in China, which has remained steadfast in its support for Russia amid economic sanctions from other nations.

Johnson stated that this moment would cause many investors to hesitate.

He stated that several index and ETF providers already provide emerging markets funds that exclude Chinese stocks.

He pointed to the (FRDM), which uses a scoring system to choose its investments based on human and economic freedoms, and the (XSOE).

Johnson stated that there are no limitations to the creativity, dynamism, and options available to index manufacturers and fund sponsors in addressing these issues.

"Even if the Russian stock market reopens and restrictions are lifted, it is likely that Russian stocks will remain in the penalty box for the foreseeable future, isolated until the index providers can become comfortable including them again, if that ever happens," he stated.

David Mazza, in the same interview, stated that it is crucial for investors and advisors to assess their portfolios at present.

The NYSE halted trading in RUSL on Friday.

Mazza stated that this specific action serves as a wake-up call for investors.

Perhaps U.S. investors should reconsider their focus on domestic mega-growth stocks and shift towards cheaper, emerging markets names.

If globalization has been rolled back in certain regions, including Russia, and other places with larger weightings in global equity benchmarks, investors need to be aware that their portfolios may require different positioning.

If anything similar happens with China, index providers will likely act swiftly, he stated.

Mazza stated that index providers are no longer waiting to be instructed and may be moving quicker than asset managers.