ETFs For Locked Up Abroad 2012 Edition (GULF, JSC, THD)
The ETF Professor is not the biggest supporter of reality. His
roommate/girlfriend has put him through untold amounts of torture
with the "Real Housewives of Wherever," shows involving the
Kardashians and that one about realtors in New York.
However, there remains one reality show that the ETF Professor
will always make time: Nat Geo's "Locked Up Abroad." The sixth
season of the wildly popular series debuts on April 25 and
last year's "Locked Up Abroad" ETF list
we went back to the drawing board for more of the same this
Yes, almost every episode of the show involves a naïve
Westerner swallowing or body-packing drugs trying in an effort to
get them out of some unsavory country and then getting caught. It
still makes for good entertainment and with the right list (this
one), profits can be had.
Here is the 2012 edition of ETFs for "Locked Up Abroad."
Global X FTSE Argentina 20 ETF (NYSE:
The Global X FTSE Argentina 20 ETF has
certainly been in the news lately
. That's not a good thing as Argentina's nationalization move on
YPF S.A. (NYSE:
), ARGT's fourth-largest holding, has renewed concerns about the
political risks of doing business in Latin America.
Well, if Argentina can basically steal a company from another
country, imagine what the country can do to drug runners. We'll
find out on LUA this season. Regarding ARGT, the ETFs isn't
liquid, cannot be shorted and has no options trading on it, so it
must be traded from the long side. That's only worth the risk if
support firms in the $9-$9.30 area.
SPDR Russell/Nomura Small Cap Japan ETF (NYSE:
For anyone that is remotely familiar with the legal system in
Japan, this is one of the worst countries in the world to be
caught trying to smuggle drugs. Japan also has some of the worst
economic problems in the developed world with an aging population
and suffocating debt burden among them.
Waiting for Japanese equities to rebound in earnest has turned
into something of a waiting for Godot moment, but if that happens
and the yen weakens, JSC is one of the Japan ETFs that could lead
the charge. Plus, it has the lowest expense ratio among Japan
WisdomTree Middle East Dividend ETF (Nasdaq:
There will be a couple of LUA episodes this season that involve
someone being caught doing something nefarious and stupid in a
Middle Eastern country, so the WisdomTree Middle East Dividend
ETF makes the list. Qatar, Kuwait and United Arab Emirates
account for over 82% of this fund's weight and over 93% of the
sector weight goes to three groups - financials, telecom and
industrials. GULF's allure comes from a dividend yield of almost
iShares MSCI Thailand Investable Market Index Fund (NYSE:
It doesn't look like Thailand is slated to be featured in the
sixth season of LUA, but the country has served as the backdrop
for several memorable episodes in the past. The "T" in the
in the CAPPT acronym
has been a stellar performer for the better part of six months,
but THD has slid almost 3.5% in the past month.
That could be a buying opportunity given Thailand's levels of
foreign investment, relative political stability and its gateway
status to Southeast Asian frontier markets.
For more on emerging markets ETFs, please click
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