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.
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
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
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
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