Use this tool to trade Emerging Market ETFs
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.
Emerging Markets have performed very well over the past year (as you can see
from the table and charts below). Once an area solely available to professional
fund managers, these markets can now be traded by anyone with a brokerage
account.
iShares has a series of ETFs based on the MSCI Emerging Market Indexes that
allow investors to trade the specific market (or markets) of interest.
The S&P 500 is up 1.70% YTD and has a 1-year return of 4.91%. Of the seven ETFs
listed below only the MSCI Mexico Index
(
EWW |
Quote |
Chart |
News |
PowerRating) has underperformed YTD and
only the MSCI Malaysia Index
(
EWM |
Quote |
Chart |
News |
PowerRating) has underperformed over the past year.
However, emerging markets have been hit pretty hard over the
past month. Are they likely to retest the highs set earlier this year or have
they topped out longer term? Unfortunately we don’t have a quantitative tool
that can answer that question but we do have one that can tell you whether they
are likely to outperform the S&P 500 over a 5-day period.
All seven ETFs have
PowerRatings
between 4 and 6, suggesting modest outperformance. That suggests despite these
markets having experienced quite large drops recently, they are not oversold
enough to present compelling buy opportunities yet.
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 | Quote | Chart | News | PowerRating) |
Brazil | 10.88 | 56.45 | 5 |
( EWM | Quote | Chart | News | PowerRating) |
Malaysia | 10.91 | 2.29 | 6 |
( EWW | Quote | Chart | News | PowerRating) |
Mexico | 1.43 | 49.11 | 6 |
( EZA | Quote | Chart | News | PowerRating) |
South Africa | 7.27 | 28.34 | 4 |
( EWY | Quote | Chart | News | PowerRating) |
South Korea | 3.63 | 56.97 | 6 |
( EWT | Quote | Chart | News | PowerRating) |
Taiwan | 5.03 | 6.38 | 6 |
( FXI | Quote | Chart | News | PowerRating) |
China | 20.65 | 15.05 | 6 |
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PowerRatings presented by Steve Primo, our Director of Education.
Ashton Dorkins
Editor-in-Chief
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