Emerging Market Exchange Traded Funds Doing Well
If you look at the leading 10 Exchange Traded Funds so far this
year, you will see many of these funds are Emerging Market
Funds. In general these funds are doing better then US Funds.
In spite of there strong performance, all Emerging Market Funds
are not the same. You need to see what the underlying Equities
are that make up these funds, and then look for trends.
The Foreign ETFs that are invested more in manufacturing are
doing the best in this area now. This is a shift from what we
have seen in the past. The Emerging market ETFs that previously
have had the best performance were those that have invested in
companies that income was based on commodities, especially oil.
Two of the leading emerging market exchange traded funds are
iShares MSCI Brazil (EWZ) and iShares FTSE.XINHUA China 25 Index
Fund (FXI). These funds are doing well and institutional
investors are still showing confidence in these ETFs. This is a
trend that has been developing over the last year.
The sector of Emerging Market Funds that now are showing signs
of pullback are ETFs that invest in companies based on
commodities. These commodities have been primarily oil and gold.
Emerging market funds that have invested in this area have
headed straight up in the last few years. At this point it looks
like these funds are taking a breather.
One up and coming fund is iShares MSCI Japan Index Fund (EWJ).
Japans economy is picking up and also giving a boost to other
Asian stocks. Institutional investors are showing interest in
this fund. To see the top ten Exchange Traded Funds and also the
most popular Exchange Traded Funds, check
www.exchangetradedfundinvesting.com.