The Argument For Emerging Global’s ECON

By Matt Hougan,

Shutterstock photo

In my monthly interview with Olly Ludwig, I called ECON the new face of emerging markets. Here's why.

Emerging markets have been hit with the ugly stick recently. The iShares Core Emerging Markets ETF (NYSEArca:IEMG), our favorite broad-based emerging markets ETF, is trading down about 9 percent year-to-date, even as the SPDR S&P 500 ETF (NYSEArca:SPY) is up nearly 19 percent.

But not all flavors of emerging markets have been hit equally. For one, different countries have been behaving differently:The iShares MSCI Philippines ETF (NYSEArca:EPHE) is up nearly 5 percent year-to-date, while the iShares MSCI All Peru Capped ETF (NYSEArca:EPU) is down nearly 30 percent.

But more interestingly, different approaches to broad-based emerging markets have been delivering different patterns of return. The two most interesting alternatives in my mind are the PowerShares FTSE RAFI Emerging Markets ETF (NYSEArca:PXH) and the EGShares Emerging Consumer ETF (NYSEArca:ECON).

Neither has been tearing it up exactly. ECON has managed to lose 'just' 0.86 percent on the year, while PXH is down a whopping 12.56 percent.

IEMG_vs_ECON_vs_PXH Don't forget to check's ETF Data section.

Copyright ® 2013 IndexUniverse LLC . All Rights Reserved.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing ETFs
Referenced Stocks: ECON , EPHE , EPU , PXH , SPY

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