Just about a year ago, to little hoopola, a new emerging
markets acronym was coined to compete with more popular fare such
as BRIC, CIVETS and MIST. That acronym is CAPPT for Chile,
Argentina, Peru, the Philippines and Thailand.
Admittedly, Argentina, a frontier market, was included more
out of necessity for a vowel than out of a bullish outlook on the
economically challenged South American nation. Due to lingering
fears about a
second sovereign debt default this century
, it was no surprise to see the Global X FTSE Argentina ETF
) finish 2012 as the laggard among CAPPT
Despite ARGT's drag, CAPPT was solid last year and the good
times are continuing again in 2013. In fact, while the mainstream
financial media and traders everywhere continue to pay heavy
attention to BRIC, CIVETS and MIST, CAPPT is shining. Shining as
in outperforming those other emerging markets acronyms on a
Using the largest ETFs by assets under management, here is how
things have played out to this point in 2013 for the various
developing world acronyms, CAPPT included.
BRIC Basically, an epic fail here. The iShares MSCI Brazil
Capped Index Fund (NYSE:
) is the only one of the four major BRIC ETFs that is up
year-to-date and only modestly so. Factor in the iShares FTSE
China 25 Index Fund (NYSE:
), the Market Vectors Russia ETF (NYSE:
) and the WisdomTree India Earnings ETF (NYSE:
) and the average loss for this quartet of ETFs is 2.83 percent
CIVETS At the start of the year, we predicted that
Vietnam, Turkey and Indonesia
would be the top-three CIVETS markets this year and that
prediction has looked good. To be fair, the order is currently
the Market Vectors Vietnam ETF (NYSE:
), the Market Vectors Indonesia ETF (NYSE:
) and the iShares MSCI Turkey Investable Market Index Fund (NYSE:
Those are the three CIVETS ETFs that are higher year-to-date.
The Global X FTSE Colombia 20 ETF (NYSE:
) is off 3.8 percent this year, which looks good compared to the
8.7 percent loss for the Market Vectors Egypt ETF (NYSE:
) and that looks good compared to the 9.3 percent fall for the
iShares MSCI South Africa Index Fund (NYSE:
Clearly, "IV" has been the best part of CIVETS this year.
MIST MIST, another acronym given to the world by Goldman Sachs
), soared last year, helped in large part by the iShares MSCI
Mexico Investable Market Index Fund (NYSE:
) and TUR. Both have cooled this year and the iShares MSCI South
Korea Index Fund (NYSE:
), the "S"in MIST, is down about 5.5 percent. That leaves IDX as
the only MIST ETF that has truly impressed year-to-date.
Average year-to-date return for the MIST ETFs: An unimpressive
CAPPT Once again, it is a Latin American ETF hindering CAPPT.
This year, it is the iShares MSCI All Peru Capped Index Fund
), which has fallen on hard times because of its
heavy mining and materials exposure
. EPU is down 5.6 percent year-to-date.
Fortunately, ARGT has bounced back somewhat as fears have
ebbed regarding another Argentine default. That said, Peru is
South America's fastest-growing economy and the medium-term
outlook there is far brighter than in Argentina. Staying in South
America, the iShares MSCI Chile Investable Market Index Fund
) has also proven durable this year, outperforming EPU, EWZ and
The crown jewels in the CAPPT crown, just as they were last
year, have been the iShares MSCI Thailand Capped Investable
Market Index Fund (NYSE:
) and the iShares MSCI Philippines Investable Market Index Fund
Those juggernaut ETFs highlight why the CAPPT acronym merits
more attention than it has previously received. Plenty of folks
have said emerging markets are lagging this year, but that is a
that really applies to BRIC and ignores obvious
leadership from EPHE and THD
boosted Thailand's credit rating
and it would be not be surprising to see the Philippines move to
investment grade territory this year. With those catalysts and
others in mind, EPHE and THD should boost CAPPT's average
year-to-date return of 6.3 percent throughout 2013.
For more on global ETFs, click .
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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