Emerging Markets ETFs Rebound After Korea Scare (EWY, VNM, THD, FXI, HAO, BRF, GXG)
A day after being slammed at the hands of news a possible military conflict between North and South Korea and more European sovereign debt concerns, emerging markets ETFs are rebounding nicely today, sending the Single Country Emerging Market ETFs Index higher by 1.7%, four times the gain for the S&P 500 in early afternoon trading.
Asia-specific ETFs, ground zero for Tuesday’s carnage, have reclaimed a good part of their losses from yesterday, led by a jump of 4% for iShares Msci-south Korea Index Fund (EWY). Market Vectors Vietnam ETF (VNM) has added 2% and iShares MSCI Thailand Invest Market Index (THD) is higher by 1% while China-specific funds iShares FTSE/Xinhua China 25 Index Fund (FXI) and Claymore AlphaShares China Small Cap Index (HAO) are both higher by almost 2%. The iShares MSCI South Korea Index Fund still has some work to after plunging 5% yesterday on the geo-political news.
As for ETFs such as the Guggenheim China Small Cap ETF and iShares MSCI Thailand Investable Market Index Fund, both are among the Single Country Emerging Market ETFs Index best performers this year , but have started to suffer from overbought conditions in recent weeks.
ETFs tracking Latin American countries have also caught a bid today, led by a 3% pop for Market Vectors Brazil Small-Cap ETF (BRF) and a 2% gain for Global X/InterBolsa FTSE Colombia 20 ETF (GXG). The Market Vectors Brazil Small-Cap ETF and the Global X/InterBolsa FTSE Colombia 20 ETF are also two of the best-performing emerging markets ETFs this year, but like their Asian counterparts, both have endured significant haircuts in November, retreating from overbought conditions.
A one-day performance in either direction does not beget a trend, but it is worth noting that all of the ETFs mentioned here are currently sporting less-than-attractive charts that show violations of 20- or 50-day moving averages, if not both, and flirtations with or downside breaks of long-term uptrend lines.
Investors can track the Single Country Emerging Market ETFs Index for performance trends and a suite of other metrics at tickerspy.com.
|Home | Find | Research | Track | Register | My Account | Logout||Web site design by LightMix|
|© 2010 Indie research Corp. All rights reserved.|