List of Emerging Market ETFs (Part 1)

[Do Or Die 10]

Hi,

 

Please refer to the following points before using the ETF list:

• Trade very cautiously ETFS where daily volume is less than 10,000 shares. Their returns can deviate for short intervals as much as 5% from their benchmark.
  
• Do not trade in inverse or leveraged ETFs unless you have a good understanding about them. An inverse (short) ETF does not exactly falls by the same percentage as its benchmark gains. Similarly a 2x leveraged ETF may not mirror a change in its benchmark by double magnitude.
  
• Select an investment premise/theme, then, select an ETF. Do not go vice versa by selecting and ETF and then choosing an investment theme. (I will shortly elaborate on this).
  
• Single country ETFs have higher trading costs than broad region specific ETFs.
  
• The expense ratio can differ widely; Vanguard ETFs tend to have the lowest expense ratio. Please research carefully the expense ratios and tax efficiency before investing.
  

Thai Fund (TTF)

This 4-star ranked fund, run by Morgan Stanley, focuses on large, established Thai blue chip firms, most notably in consumer cyclical, financial services, real estate and industrials.

 

iShares MSCI South Korea (EWY)

It out performed in 2009, 2010 and most of 2011 so far. Recently it has been crushed and can be bought at attractive prices (oversold).

 

WisdomTree Emerging Markets High-Yielding Fund (DEM)

It invests in the top two most important components of emerging markets- growth stocks as well as high dividend yield paying stocks.

iShares MSCI Malaysia (EWM)

The Malysian Economy thrives on the China/Japan neighbor theme.

 

iShares MSCI Peru (EPU)

An exchange traded fund for Peru has bounced this week following solid economic data. Peru is responsible for about 6% of world gold production; and gold will likely keep moving up until we enter the last phase of recession.

 

South Korea iShares (EWY)

South Korea has good potential and likely a long-term buy. EWY currently looks oversold.

 

WisdomTree Local Asian Debt (ALD)

Asian countries are well-equipped to pay their bills, the yield on the basket is venerable and Asian currencies will likely rise against the greenback over the next 5-7 years.

 

iShares MSCI Germany (EWG)

News that Germany’s economy expanded a mere 0.1% pushed stocks lower on Tuesday. German has the best fundamentals in EU and EWG is currently oversold.

 

SPDR S&P Emerging Middle East & Africa (NYSE: GAF)

Ghana is projected to be the fastest growing country in 2011 in Africa and among the top in world. Ethiopia, Congo and Angola are other top growing countries in Africa.

 

The Broad Emerging market ETFs are:

iShares MSCI Emerging Markets Index Fund (EEM)

PowerShares FTSE RAFI Emerging Markets Portfolio (PXH)

SPDR S&P Emerging Markets ETF (GMM)

Vanguard Emerging Markets ETF (VWO)

GlobalShares FTSE Emerging Markets Index Fund (GSR)

Schwab Emerging Markets Equity ETF (SCHE)

 

GMM has 18% weight in financials with significant country weightings in China and Brazil. The EEM is well-diversified across sectors, but has a decided tilt towards Asian emerging markets. The DEM is tilted towards Taiwan.

 

Latin America Regional ETFs

iShares S&P Latin America 40 Index Fund (ILF)

SPDR S&P Emerging Latin America ETF (GML)

Productivity is likely to pick up in Latin America (unless are headed for double dip recession!) and top performing sectors could be commodities producers, basic materials, transportation and communications.

 

European Emerging Markets Regional ETFs

iShares MSCI Emerging Markets Eastern Europe Index Fund (ESR)

SPDR S&P Emerging Europe ETF (GUR)

Middle East and Africa Regional ETFs

SPDR S&P Emerging Middle East & Africa ETF (GAF)

Market VectorsGulf States Index ETF (MES)

Invesco PowerShares MENA Frontier Countries Portfolio (PMNA)

WisdomTree Middle East Dividend Fund (GULF)

 

Frontier Markets

Claymore/BNY Mellon Frontier Markets ETF (FRN)