Though many markets have been very choppy over the past few
months, a handful have managed to breakout of this malaise and find
their footing. In fact, during recent trading, three country ETFs
actually hit fresh 52 week highs, suggesting that they are
definitely moving in the right direction, despite some serious
concerns about the global economy.
This may mean that these funds are a bit uncorrelated to the
broader economy, and that they may be better positioned to deal
with the ups and downs of the current volatile investing
environment. So, some might be excellent selections for global
investors at this time. Below, we profile these three nations which
are seeing their funds surge to 52 week highs, and what their
positive momentum as of late has been:
The Israeli market is best represented in ETF form by the
iShares MSCI Israel Capped Investable Market ETF (
. This fund tracks a basket of about 55 stocks in the nation and it
currently holds just over $100 million in assets.
The product is targeted on financials and health care, as these two
segments make up just over half of the portfolio combined, while
basic materials and real estate round out the top four.
Teva Pharma (
dominates the portfolio with just under 24% of assets, while two
banks take up the next two spots in the fund.
EIS hit its 52 week high of $52.18/share on Wednesday, representing
a gain of about 19.2% in the past one year time frame. While this
has slightly underperformed the S&P 500 in the same time
period, investors should note that EIS has trounced SPY in the past
three months, adding over 9.2% compared to 3.4% for the top
American benchmark (see
all the Africa Middle East ETFs here
One of the key reasons for this concentrated fund's run of
outperformance is definitely TEVA. The stock-which is roughly
one-quarter of EIS-has gained more than 26% in the past three
months, propelling the Israel ETF to a big gain. And considering
that TEVA currently has a Zacks Rank #2, we could see more gains
out of this stock, and thus EIS, in the near future.
New Zealand isn't exactly a hotbed of ETF activity as really there
is only one choice targeting the space right now, the
iShares MSCI New Zealand Capped ETF (
The fund targets 30 stocks from the nation, and it has just under
$170 million in assets under management.
This fund is pretty well spread out, as no single sector accounts
for more than 20% of the total. Instead, six segments receive
weights of at least 10% in the basket, suggesting solid
diversification from that perspective (See
3 Global ETFs for a Diversified Portfolio in
ENZL recently hit its 52 week high of $42.83/share, and the fund
has moved higher by about 18.7% in the past one year time frame.
Again, this is a bit light compared to the S&P 500, though the
real run for ENZL has come in the past three months.
In that time frame, ENZL has shot up more than 15%, a huge contrast
to the S&P 500's gain of less than 4% in the same period. A big
reason for this move was some hope for the New Zealand economy, and
the stronger kiwi dollar which is right around its own 52 week
Part of this strength is due to the New Zealand central bank and
their rate increase. This made New Zealand one of the first
developed market countries to raise rates at this time, and it
signals that, unlike most developed markets, the New Zealand one
can take a rate hike, suggesting broad strength in the small
Rate Hike Puts New Zealand ETF in Rare Company
Although Greece has faced some very dark days in recent years, some
stocks in the economy appear to be back on track to some extent.
This is especially true when investors look to
the Global X FTSE Greece 20 ETF (
, which is a fund that has built up assets of just over $250
million and follows 20 stocks focused on Greece.
GREK is heavily focused on a few names, as all of the top three
holdings make up over 10% of the total assets. Still, exposure
across sectors is surprisingly diverse, as four segments make up at
least 14% of assets, while three more receive weights of at least
This fund has seen a big range over the past 52 weeks, going from
$14.11/share to its current level around the high of $25.72.share.
And from the year ago period, the fund has moved higher by over
60%, though unlike the others on the list the recent move wasn't
the main cause (though the 15% bump in the past three months
A big part of GREK's revival is the broader European recovery, and
the fact that Greece has taken a step back from the abyss. With a
stronger Europe and reduced debt concerns, many investors have
bought up cheap Greek stocks over the past few months, helping
funds like GREK immensely (see
Why PIIGS ETFs Are Outperforming
So for the case of Greece, it could be some bargain hunting, and
broader interest in the European stock market once more. It is hard
to tell if these gains can continue, though it should be noted that
GREK has gained over 75% since inception, though the country's
market is still very far depressed from the pre-recession levels.
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ISHRS-MSCI ISRL (EIS): ETF Research Reports
ISHARS-MSCI NZ (ENZL): ETF Research Reports
GLBL-X/F GREC20 (GREK): ETF Research Reports
TEVA PHARM ADR (TEVA): Free Stock Analysis
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