Over the past month or so, it was becoming painfully evident
that the iShares MSCI Brazil Index Fund
) was headed for bear market territory. That being a 20% decline
from a previous high.
EWZ, the largest Brazil ETF, has achieved that ominous fate,
closing just over $51 on Tuesday after trading above $70 in
March. The fund is now 31% removed its 52-week high over $74, but
it's far from the only marquee emerging markets ETF that has
swooned into bear market territory.
There are others. Lots of others, indicating investors might
be facing an uphill climb in 2012 if they want to have their
investing passports stamped in search of higher returns. Just
take a look at this roster of well-known bear market
Market Vectors Indonesia Index ETF (NYSE:
At this point, it might be hard to remember that
IDX has been one of the best-performing ETFs of
any stripe since the March 2009 market bottom
Looking back, it's not surprising IDX is on this list. Even in
February when most emerging markets ETFs were looking good,
IDX was lagging, perhaps a sign bad things were
on the horizon
. IDX is now stuck in the middle so to speak. The fund is 20%
above its 52-week low, but 20% below its 52-week high.
iShares MSCI Taiwan Index Fund (NYSE:
While the merits of Taiwan as an emerging market are highly
debatable, the point here is that, like IDX, EWT flashed some
signals that bear market territory was in the forecast. It was
only a year ago that this ETF was flirting with $16, but the
drubbing EWT endured in the back half of 2011 was so severe that
the best EWT could do was flirt with $14 earlier this year.
Now it's flirting with $12 and if the promotion to developed
markets status does arrive for Taiwan, EWT will be on the
receiving end of more selling pressure.
iShares MSCI Poland Investable Market Index Fund (NYSE:
We won't even go all the way back to the 52-week because that
paints an even gloomier picture, but it should also be said that
EPOL was trading over $28 in late October. EPOL closed below
$21.50 on Tuesday. The good news, maybe, is that EPOL has shown a
tendency to bounce off $21 and rally two higher with two of those
moves delivering gains in excess of 20% in just a month. No
guarantees that will happen again, though. EPOL currently yields
SPDR S&P Emerging Europe ETF (NYSE:
The SPDR S&P Emerging Europe ETF, which is essentially a
Russia ETF with Poland and Turkey kickers, will only be able to
withstand a small amount of additional carnage from those three
markets before it falls to its 52-week low. As it is, GUR is
about 20% removed its March peak and the chart is
less-than-appealing for those thinking long.
WisdomTree India Earnings ETF (NYSE:
If one needed more convincing that India
might just be the worst of the BRICS for the
, we offer up the rancid performance of EPI. The largest India
ETF could easily touch a new 52-week low as soon as today.
EPI traded above $21 in February. It closed below $16 on
Tuesday. Regarding additional bearish signals, ominous is the
fact that EPI's volume has been increasing on the downside.
For more on emerging markets ETFs, please click
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