While markets roiled over the past week, exchange traded fund investors have been shifting into the emerging markets. Among most in-demand ETFs of the past week, the Vanguard FTSE Emerging Markets ETF (NYSEArca: VWO) attracted $1.3 billion in net inflows and the iShares Core MSCI Emerging Markets ETF (NYSEArca: IEMG) saw $1.0 billion in new creations, according to ETFdb data.
Brazil country-specific exchange traded funds rebounded Monday as traders anticipate the central bank to take aggressive interest rate hikes. The iShares MSCI Brazil Capped ETF ( EWZ B+ ) increased 1.3% on Monday, testing its long-term support at the 200-day simple moving average.
Abu Dhabi-based asset manager Chimera Capital has unveiled a new ETF in the United Arab Emirates providing exposure to companies listed on the federation’s three domestic stock exchanges. Chimera Capital has unveiled its second ETF.
First Trust Advisors L.P., a leading exchange-traded fund provider and asset manager, announced on Thursday that it has launched a new actively managed ETF, the First Trust TCW Emerging Market Debt ETF (NYSE Arca: EFIX) . The fund seeks to provide a high total return from current income and capital appreciation by investing in emerging market debt.
The combination of emerging markets and junk bonds may appear to be too risky for many income investors, but with the right methodology investors can dial back some of that risk while grabbing access to higher levels of income. Enter the VanEck Vectors EM High Yield Bond ETF (NYSEArca: HYEM) .
Investors frequently hear about the benefits of tapping the emerging markets consumer theme – one that largely revolves around China. The KraneShares CICC China Consumer Leaders Index ETF (NYSEARCA:KBUY) is an example of exchange traded fund with dedicated access to Asia’s powerhouse.
This small-cap EM-themed ETF offers investors a dividend yield of almost 4%.
The efficiency ratio at 0.68% is on the higher side by general ETF standards but is in line with other EM-themed ETFs.
Holdings are well-diversified across stocks and sectors; dominant regions include Taiwan, Korea, and China all of whom have favorable economic prospects.
That said, it’s a good time to seek yield in other parts of the world, such as emerging markets (EM), via the Invesco Emerging Markets Sovereign Debt ETF (PCY A)
China’s consumer discretionary sector has seen extreme gains over the past few months as investors pile into the only major area of global economic growth.
China’s consumption has grown at a fast pace over the past decade, but growth has decreased substantially over the past few years as its housing market becomes unstable.
Recent surprise defaults of AAA-rated state-owned-enterprises have sparked fears of hidden widespread risks in China’s major corporations.
Despite risks, valuations of China’s major consumer discretionary companies have nearly doubled this year.
The China consumer discretionary ETF CHIQ’s performance may reverse soon as the PBOC looks to stop the Yuan’s rise and the U.S. flirts with delisting Chinese firms.
The Global X Emerging Markets Internet & E-commerce ETF seeks to offer targeted exposure to some of the most tech savvy companies in the world’s fastest-growing markets
nvestors should be aware that ASHR does not invest in Chinese companies listed outside mainland markets, so popular stocks listed solely in Hong Kong won’t be in its portfolio.
ASHR was the first U.S.-listed ETF to offer direct exposure stocks listed in mainland Chinese markets in Shenzhen and Shanghai.
In the meantime, for ETF investors looking to get exposure to Brazil as a potential bargain should the country stage a comeback in 2021, here are two funds to consider with varying strategies and market caps: iShares MSCI Brazil Capped ETF (NYSEArca: EWZ) : EWZ seeks to track the investment results of the MSCI Brazil 25/50 Index, which consists of stocks traded primarily on B3 (the largest Brazilian exchange).
The fund seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the MVIS® Brazil Small-Cap Index.
