Trade Emerging Markets With PowerRatings
TradingMarkets provides a daily list of
ETF PowerRatings. From that extensive list you can create your own watch
lists (using the
My PowerRatings Portfolio tool) to trade the markets/sectors that are
performing best/worst.
If you only trade the US market, you are missing out on tremendous opportunities
overseas. You can use ETFs to trade just about any international market or
sector.
Emerging markets have been particularly strong over the past year. While the S&P
500 is up 3.45% YTD, the iShares MSCI Brazil Index (EWZ)EWZ] is up 28.74% YTD,
and the 1-year return is 75.67%.
However, Brazil isn’t the only emerging market index to significantly outperform
the US. Six out of seven emerging market indexes listed in the table below
outperformed the S&P 500 over the past year (Taiwan was the exception), and five
out of the seven posted 1-year returns greater than 32%.
With these kind of returns, investors should watch emerging market ETFs closely
for buying/selling opportunities. This is where PowerRatings can help.
Focus on ETFs with PowerRatings of 7-10 and avoid those with
PowerRatings of 1-3. Using this strategy, you could rotate into the emerging
market with the highest probability of outperforming the S&P 500 over the next
5-days.
Here is a list of Emerging Market Indexes that trade in the US
as
iShares.
| Symbol | Emerging Market Index |
YTD % Return | 1-Yr Return % | PowerRating |
| EWZ) | Brazil | 28.74 | 75.67 | 5 |
| EWM) | Malaysia | 7.18 | 8.87 | 6 |
| EWW) | Mexico | 8.65 | 47.58 | 5 |
| EZA | South Africa | 9.07 | 38.79 | 6 |
| EWY | South Korea | 1.79 | 33.77 | 6 |
| EWT | Taiwan | 1.76 | 4.13 | 6 |
| FXI | China | 19.38 | 32.03 | 5 |
Click here
to take a free trial of PowerRatings.
You can also
attend a free
class on how to use PowerRatings
presented by Steve Primo, TradingMarkets Director of Education.