Geographic exposure is critical when embracing international equities. As the China regulatory controversies are confirming this year, examining an exchange traded fund’s geographic weights is critical for investors considering emerging markets equities.
When investors think of large equity markets and robust pipelines of initial public offerings (IPO), they usually think of the U.S. While this happens for a reason, IPO fever can and does grip other countries, and that’s happening this year in India.
Domestic value stocks are garnering plenty of attention this year, and the returns for the asset class in the first half of the year were worthy of adulation. While some of that momentum ebbed, value equities still have some catalysts, including precedent for performing well during inflationary climates, the possibility that Treasury yields will rise anew, and the fact that the current value rally is still young by historical standards.
The green push can extrapolate investment gains from Southeast Asia, particularly the Global X FTSE Southeast Asia ETF ( ASEA B+ ) and the Global X CleanTech ETF ( CTEC ).
WisdomTree has rolled out a new ETF in Europe providing exposure to emerging market equities while excluding firms with significant government ownership.The WisdomTree Emerging Markets ex-State-Owned Enterprises ESG Screened UCITS ETF has been listed on London Stock Exchange in US dollars (XSOE LN) and pound sterling (XSOP LN) as well as on Xetra (XSOE GY) and Borsa Italiana (XSOE IM) in euros.
Major smartphone company Huawei, hurting from continued U.S. sanctions, has fallen by the wayside, and a new Chinese tech company is profiting in its stead. Xiaomi Corp has swept through global markets, selling the most phones worldwide in June, and looks to continue its upward movement.
Earlier this year there were expectations that a global economic recovery would be a boon for the export-reliant and commodity-sensitive emerging markets (EM). Fast-forward to August, and the MSCI Emerging Market Index (measured in local currency) is the worst-performing broad index we track—up just over 3% compared to the nearly 15% gain of the MSCI ACWI
With regulations having hit internet and tech stocks in China hard, overseas investors have been reallocating in droves to industries they believe to be safe from the regulatory hammer. Those industries and sectors fall largely in high-tech manufacturing as well as renewable energy, according to the Wall Street Journal .
Brazil exchange traded funds were among the best performers on Monday as the central bank planned its biggest rate hike in 18 years, strengthening the real currency. On Monday, the iShares MSCI Brazil Capped ETF (NYSEArca: EWZ) increased 2.9% and the iShares MSCI Brazil Small-Cap ETF (NasdaqGM: EWZS) advanced 3.2%.
Amidst regulatory crackdowns and volatile Chinese markets, Brendan Ahern, COO of KraneShares, and Dr. Xiaolin Chen, Head of International at KraneShares, hosted a webinar to discuss the current state of investing in China and their overall outlook on Chinese markets today.
The MSCI China Index slumped almost 5% last week, extending its July loss to 13.55% as Beijing continues its regulatory crackdown on internet companies. In recent weeks, hundred of billions of dollars of market capitalization have evaporated at Chinese internet companies, such as Alibaba, Didi, Meituan, and Tencent, but some investors are using the calamity to embrace related exchange traded funds and that devotion could benefit products like the Invesco Golden Dragon China ETF (PGJ) .
FinEx has launched a new ETF in Russia providing exposure to companies operating in the global video gaming and eSports industries. Companies in the video gaming & eSports industries were early beneficiaries during the Covid-19 environment.
Cathie Wood -led Ark Investment Management trimmed exposure to Chinese companies as talks to improve the U.S.-China relationship continued to be in a stalemate. What Happened: On Monday, Ark Fintech Innovation ETF (NYSE: ARKF ) and Ark Space Exploration & Innovation ETF (BATS: ARKX ) sold some shares in Alibaba Group Holding Ltd (NYSE: BABA ).
Asian growth cubs are a critical component of any emerging markets (EM) portfolio. The Cubs are now directly accessible to U.S. investors through an innovative and pioneering exchange traded fund strategy. In the recent webcast, Beyond China and India: Investing in the Next Generation of Emerging and Frontier Markets , Maurits Pot, Founder & CIO, Dawn Global Management, highlighted the growth opportunity of the emerging markets, notably the so-called Asian growth cubs.
