Over the past month, the list of the worst-performing ETFs
reads like a who's who of emerging markets funds. What might
surprise some investors is the list of top-performing
non-leveraged ETFs over the past month also includes a few
emerging markets funds.
The iShares MSCI Poland Capped ETF (NYSE:
) and the Market Vectors Poland ETF (NYSE:
) are among that group with one-month returns of 3.5 percent and
4.2 percent, respectively. Those numbers exclude the more than
two percent gains those ETFs are sporting during Thursday's U.S.
Stealth Rallies For These Emerging Markets
EPOL and PLND, which have about $353 million in combined
assets under management, have also stood tall in the face of
tapering chatter. PLND, the smaller of the two ETFs, has surged
8.5 percent May 22 when the Federal Reserve indicated tapering of
quantitative easing at some point this year is a real
"As for Fed tapering, I believe investors are picking
countries with less financing needs," said Generation Systematic
Solutions Portfolio Manger Bartlomiej Fraszczyk
in an email
exchange with Benzinga
. Existing clients of the firm have some allocations in EPOL.
Fraszczyk noted that Poland recently posted a quarterly
current-account surplus and that "Polish exports rose by 8.2%
from a year earlier in June, this should help narrow the annual
current account deficit vs. previous year."
There is something to the notion that global investors are
expressing a preference for countries with narrowing account
deficits or surpluses. Among the worst-performing emerging
markets ETFs this year
India and Indonesia funds
. Those countries are currently afflicted with widening account
Generation Systematic Solutions, in collaboration with HDFC
Asset Management and IIFL Global, launched the Strategic India
Fund earlier this year. Fraszczyk notes the fund has been in cash
since its launch date, enabling it to outperform Indian
benchmarks and rival funds.
Poland ETFs are benefiting from another scenario as well:
Recovering Eurozone economies. Poland is not a Eurozone member,
but the country has expressed
For more on ETFs, click
Disclosure: Author owns none of the securities mentioned
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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