ETF emerging market

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.

A Turkey country-specific exchange traded fund has been among the worst performers this year, as the Turkish economy grapples with a weakening lira currency and a high inflation rate. The iShares MSCI Turkey ETF (NasdaqGM: TUR)  has declined 16.77% year-to-date.

Many overseas governments are taking swift action to stifle inflation, which bodes well for EM bonds and assets like the Vanguard Emerging Markets Government Bond Index Fund ETF Shares ( VWOB A+ ). One country exhibiting considerable opportunity is Brazil, to which VWOB offers a 4.9% market allocation, as of 5/31/21. 

Our view on emerging-market bonds is less optimistic after Federal Reserve policymakers indicated in mid-June that they may raise short-term interest rates sooner than previously expected. Although we had previously suggested investors consider overweighting emerging-market (EM) bonds relative to a benchmark target allocation, we now have a neutral view on EM bonds.

Investors looking for the next batch of rising stars among developing economies have a credible option in Vietnam. That country’s small but rising equity market is accessible via the VanEck Vectors Vietnam ETF ( VNM B ) – an exchange traded fund that’s higher by more than 14% year-to-date.

The widely observed MSCI Emerging Markets Index is up 7% year-to-date. That’s decent, but investors opting for emerging markets exchange traded funds with deeper cyclical value tilts could be doing a lot better. For example, the ALPS Emerging Sector Dogs ETF (NYSEArca: EDOG) is up nearly 13% since the start of the year.

Yield is still at historically low levels, but China’s debt market still offers attractive options through assets like the KraneShares CCBS China Corporate High Yield Bond USD Index ETF (KCCB) . KCCB seeks to provide investment results that, before fees and expenses, track the price and yield performance of a specific fixed income securities index.

India exchange traded funds have been rallying as investors look past the short-term Covid-19 crisis and consider long-term growth potential. Over the past month, the iShares MSCI India ETF (CBOE: INDA) increased 7.7% and the  WisdomTree India Earnings ETF (NYSE: EPI)  has advanced 9.2%.