Global equities have struggled in the past several months. There
is no getting around that and the statistics indicate as much. In
the past 90 days, the Vanguard MSCI Emerging Markets ETF (NYSE:
) is off almost 11 percent while the Vanguard MSIC Europe ETF
) is down nearly seven percent.
The Vanguard Total International Stock Index ETF (
) is no peach either with a loss of 8.4 percent since April 13.
While that is just a trio of ETFs, the performances underscore the
notion that finding even small pockets of strength among
international funds is a trying endeavor in the current market
The good news is that it is not impossible to find some global
ETFs that have been showing signs of outperforming in the second
half. One merely needs to know where to look and this list will
help with that task.
Global X Norway ETF (NYSE:
) Even with a loss of 1.3 percent today, the Global X Norway ETF
has surged nearly four percent in the past month. Still, investors
need to be aware that NORW is the epitome of a double-edged sword
among international ETFs.
Norway is not a member of the Eurozone, but proximity to those
problematic countries has been a drag on NORW. Second, Norway is an
oil exporter, meaning falling oil demand and prices are issues that
cannot be glossed over regarding this fund. On the other hand,
viewed by some as the safest bet in Europe
and is among the most fiscally sound countries on the continent. A
move above $13.50 would likely confirm a breakout for NORW.
Market Vectors Indonesia Index ETF (NYSE:
) Indonesia has been a vexing proposition for investors this year.
As Southeast Asia's largest economy, the country should have stood
out in that region in the first half of the year. In terms of ETFs,
IDX and the iShares MSCI Indonesia Investable Market Index Fund
(NYSE: ) did stand out earlier this year. Those funds while other
emerging markets ETFs were soaring in the first quarter.
IDX has rallied nearly four percent in the past month. If the
fund can hold around $27 and keep closing above there, that could
portend a breakout above $28. The bear case for IDX and EIDO is
clear: Further retrenchment among emerging markets funds. In that
scenario, traders will eventually find their way to punishing
Indonesian ETFs as well.
iShares MSCI Philippines Investable Market Index Fund (NYSE: )
Not many ETFs tracking global markets, developed or developing, can
boast of recently touching a new 52-week high, but that is exactly
what EPHE did just a few days ago. Traders that actively follow the
For those that are not familiar with this rising Asian tiger,
the combination of rising GDP growth, improving credit ratings and
the government's strong balance are just three catalysts that could
lift this ETF not only in the second half, but over the long-term
iShares MSCI Chile Investable Market Index Fund (NYSE: ) For
myriad reasons, the inclusion of the iShares MSCI Chile Investable
Market Index Fund on this list might come as a surprise. There is
the fact that Chile is the world's largest copper-producing nation.
That is not a good thing when the Chinese economy is slowing.
Of course, it cannot be ignored that Latin America equities,
broadly speaking, have recently been weak. On that note, ECH
plunged 10 percent in the second quarter. The fund found support in
the $58 area and has perked up a bit since early June. Given
Chile's copper exposure, there are no guarantees ECH can flourish
in the second half, but the fund is up 3.2 percent in the past
month, easily outpacing the iShares MSCI Brazil Index Fund (NYSE: )
over the that time.
For more on international ETFs, click .
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