Self Directed Investor Inc
SDI: "Empowering investors with ideas and education"
Symbol Lookup »  
Topics:ChinaETFsEarningsEconomyEnergyForexGoldIncomeLessonsIdeasTrading

  • Other news: News from PR Newswire
| More

The Best (and Worst) Emerging Markets ETFs over the past 3 years

Mon, Oct 29, 9:35 AM ET, by Michael Johnston

Emerging market ETFs have become increasingly popular in recent years, as investors have embraced this corner of the market for its lucrative growth opportunities as well as its long-term potential. These markets consume large amounts of commodities, are developing a middle class, and are expanding their infrastructure faster than any developed nation before them. Many have turned in impressive gains over the past three years for investors who jumped in early. But these returns are by no means the standard; within this category there is a large gap between the best and worst performers [see also European Dividend ETFs Offer Big Yields].

First, as always, the winners. These ETFs invested in the right industries and developing nations, which have blossomed over the last three years.

DWA Emerging Market Technical Leaders Portfolio (PIE)

This ETF has risen to the top of its category by focusing on 100 companies across the globe that possess powerful relative strength characteristics and are seen as influential in growing markets. Most of the companies are consumer cyclical, making up 25% of the portfolio, but there are also fair representations from the consumer defensive and basic materials sectors. Asian equities account for 50% of total assets, split between Malaysia, South Korea, Indonesia, and Thailand, but there are also a fair number of companies from Turkey, South Africa, and Brazil [see also 5 Emerging Market ETFs ex-Taiwan & South Korea].

The 3-year return for this ETF is a whooping 25%, and its current year-to-date return comes in at 12%. These amazing returns may be caused by this ETF’s strategy of investing in consumer sectors in growing middle class economies, which are notorious for spending money.

Emerging Markets Equity Income Fund (DEM)

This well diversified fund follows a fundamentally weighted index that measures the performance of the highest dividend yielding stocks in emerging markets. The largest country represented in the fund is Taiwan, which makes up 20% of the portfolio. There are other main holdings in China, Russia, Brazil, and South Africa. The financial sector makes up 25% of the portfolio, since this industry historically has some of the highest dividends, while energy, materials, and telecom sectors also receive meaningful weightings. [see also 3 High Yielding Telecom ETFs].

With a 25% 3-year return and a 10% YTD return, this fund has brought in amazing returns with its current income strategy. Dividend paying companies offer great exposure to emerging economies, while maintaining a sense of security as a long term holding.

S&P Emerging Markets Infrastructure Index Fund (EMIF)

EMIF focuses on the growth of infrastructure in growing economies, investing heavily in the industrials, utilities, and energy sectors. These industries tend to be dominated by large firms, which make up 80% of the ETF’s total assets, with medium firms accounting for the rest. Securities from Latin America make up almost half of this fund, with Brazilian stocks alone taking up a third of the portfolio. Chinese equities also make up a significant portion of total assets, but there are also important smaller holdings in Russia, Mexico, Chile, and the Czech Republic.

This narrow view of emerging economies has paid off, with returns of 23.5% over the last 3 years, and an amazing current YTD return of 18%. Governments and companies that want to expand their global reach have to improve the conditions of their own country first, so investing in infrastructure makes for a potentially lucrative opportunity [see also 8% Yield ETFdb Portfolio Now Available].

And now, the emerging market ETFs that didn’t get it right.

Dow Jones Emerging Markets Metals & Mining Titans Index Fund (EMT)

This ETF seeks to measure the performance of the largest publicly traded mining companies involved in industrial and precious metal exploration, extraction, and production in emerging markets. With mostly large cap holdings in South Africa, China, and Brazil plus a annual dividend yield of 4.2%, it might come as a surprise at first glance that this ETF has fallen so far.

Invested entirely in the basic materials sector, EMT not only has the highest expense ratio of the commodity producers equity ETFs at 0.85%, but it also has lost 21.7% over the last three years. This could have been caused by the relatively poor performance and unreliability of the mining sector, but also lack of diversification in this ETF [see also DEM Makes Its Case To Be Your Emerging Market ETF].

BRIC ETF (EEB)

This ETF follows an index of American and global depository receipts, selected based on liquidity, from companies in the BRIC nations; Brazil, Russia, India, and China. Most of these companies are either operating in energy, financial services, or the communications industry and are giant corporations within their home markets [see also European Dividend ETFs Offer Big Yields].

This fund has struggled to stay afloat, losing 10% over the last 3 years and 23% over the last five years. One of the main problems in BRIC nations investing is that these economies have grown significantly over the last ten years, and some of them soon might not even be considered emerging markets. These economies also felt the affects of the 2011 and 2008 downturns, with hammered equity prices around the globe significantly impacting these developing nations.

MSCI BRIC Index Fund (BKF)

BKF has also narrowed the lens of emerging markets down to just Brazil, Russia, India, and China, some of the largest and most well known growing economies. China and Brazil each take up a third of the fund’s total assets, the remainder is split between India and Russia. Most of the companies included are in financial services, energy and basic materials sectors, much like the previously mentioned EMT.

The winner of the losers, BKF only managed to lose 9% over the last 3 years, even after gaining 90% in 2009 when it outperformed all other funds in its sector. This fund’s recent poor returns may be caused by a combination of over saturation in these well known markets, along with the economic slowdown in China. All hope for this ETF might not be lost, as its YTD return is currently 10%, investors who think BKF could return to its former glory might want to take a closer look at it.

[For more ETF analysis, make sure to sign up for our free ETF newsletter or try a free seven day trial to ETFdb Pro]

Disclosure: No positions at time of writing.

Click here to read the original article on ETFdb.com.


SDI Glossary: "price" Definition
SDI Glossary: "Dividend" Definition
SDI Glossary: "Equity" Definition
SDI Glossary: "ETFs" Definition
SDI Glossary: "Leader" Definition
SDI Glossary: "Yield" Definition
This Article's Word Cloud:   BRIC   Brazil   China   ETFdb   ETFs   Emerging   Fund   Markets   Most   Russia   South   These   This   also   assets   companies   economies   emerging   energy   from   fund   growing   have   investing   investors   large   largest   last   make   market   markets   materials   might   nations   over   portfolio   return   returns   sector   sectors   that   their   there   these   this   total   well   which   with   years

| More

FXL Crosses Above Key Moving Average Level
Fri, Oct 24, 4:14 PM ET, by ETF Channel

In trading on Friday, shares of the First Trust Technology AlphaDEX Fund ETF (FXL) crossed ...

Shares of DXKW Now Oversold
Fri, Oct 24, 4:14 PM ET, by ETF Channel

In trading on Friday, shares of the WisdomTree Korea Hedged Equity Fund ETF (DXKW) entered ...

GMM Crosses Above Key Moving Average Level
Fri, Oct 24, 4:14 PM ET, by ETF Channel

In trading on Friday, shares of the SPDR: SYSTEM ERROR ETF (GMM) crossed above their ...

EEMA Makes Notable Cross Below Critical Moving Average
Fri, Oct 24, 4:14 PM ET, by ETF Channel

In trading on Friday, shares of the iShares MSCI Emerging Markets Asia ETF (EEMA) crossed ...

Proshares Short MSCI Emerging Markets (EUM) Shares Cross Below 200 DMA
Fri, Oct 24, 4:14 PM ET, by ETF Channel

In trading on Friday, shares of the Proshares Short MSCI Emerging Markets ETF (EUM) crossed ...

Intuitive Surgical Takes Over #184 Spot From International Flavors & Fragrances
Fri, Oct 24, 11:54 AM ET, by ETF Channel

In a study of analyst recommendations at the major brokerages, for the underlying components of ...

EWRI Crosses Below Key Moving Average Level
Fri, Oct 24, 11:24 AM ET, by ETF Channel

In trading on Friday, shares of the Guggenheim Russell 1000 Equal Weight ETF (EWRI) crossed ...

Shares of RSXJ Now Oversold
Fri, Oct 24, 11:14 AM ET, by ETF Channel

In trading on Friday, shares of the Russia Small-Cap ETF (RSXJ) entered into oversold territory, ...

PowerShares BuyBack Achievers Portfolio Experiences Big Outflow
Fri, Oct 24, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: PKW, LOW, GM, DTV Exchange traded funds (ETFs) trade just ...

iShares J.P. Morgan USD Emerging Markets Bond ETF Experiences Big Inflow
Fri, Oct 24, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: EMB Exchange traded funds (ETFs) trade just like stocks, but ...

VB, COO, TRN, MDVN: Large Inflows Detected at ETF
Fri, Oct 24, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: VB, COO, TRN, MDVN Exchange traded funds (ETFs) trade just ...

XLB, DD, MON, DOW: ETF Inflow Alert
Fri, Oct 24, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: XLB, DD, MON, DOW Exchange traded funds (ETFs) trade just ...

KRE, WAL, TCBI, SBNY: Large Inflows Detected at ETF
Fri, Oct 24, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: KRE, WAL, TCBI, SBNY Exchange traded funds (ETFs) trade just ...

VHT, CELG, LLY, ACT: Large Outflows Detected at ETF
Fri, Oct 24, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: VHT, CELG, LLY, ACT Exchange traded funds (ETFs) trade just ...

XLI, DHR, EMR, CMI: Large Outflows Detected at ETF
Fri, Oct 24, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: XLI, DHR, EMR, CMI Exchange traded funds (ETFs) trade just ...

iShares MSCI Mexico Capped ETF Experiences Big Outflow
Fri, Oct 24, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: EWW Exchange traded funds (ETFs) trade just like stocks, but ...

Proshares Ultra Industrials (UXI) Shares Cross Above 200 DMA
Thu, Oct 23, 4:14 PM ET, by ETF Channel

In trading on Thursday, shares of the Proshares Ultra Industrials ETF (UXI) crossed above their ...

BRXX Crowded With Sellers
Thu, Oct 23, 3:54 PM ET, by ETF Channel

In trading on Thursday, shares of the EGShares Brazil Infrastructure ETF (BRXX) entered into oversold ...

IYJ Crosses Above Key Moving Average Level
Thu, Oct 23, 3:54 PM ET, by ETF Channel

In trading on Thursday, shares of the iShares U.S. Industrials ETF (IYJ) crossed above their ...

First Trust South Korea AlphaDEX Fund Breaks Above 200-Day Moving Average - Bullish for FKO
Thu, Oct 23, 3:54 PM ET, by ETF Channel

In trading on Thursday, shares of the First Trust South Korea AlphaDEX Fund ETF (FKO) ...

Stericycle Moves Up In Analyst Rankings, Passing Anadarko Petroleum
Thu, Oct 23, 12:34 PM ET, by ETF Channel

In a study of analyst recommendations at the major brokerages, for the underlying components of ...

Vanguard Industrials (VIS) Shares Cross Above 200 DMA
Thu, Oct 23, 11:54 AM ET, by ETF Channel

In trading on Thursday, shares of the Vanguard Industrials ETF (VIS) crossed above their 200 ...

BRF Crowded With Sellers
Thu, Oct 23, 11:34 AM ET, by ETF Channel

In trading on Thursday, shares of the Brazil Small-Cap ETF (BRF) entered into oversold territory, ...

Shares of FBZ Now Oversold
Thu, Oct 23, 11:34 AM ET, by ETF Channel

In trading on Thursday, shares of the First Trust Brazil AlphaDEX Fund ETF (FBZ) entered ...

Vanguard Financials ETF Experiences Big Outflow
Thu, Oct 23, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: VFH, COF, BLK, PRU Exchange traded funds (ETFs) trade just ...

IYJ, NSC, PCP, ITW: Large Outflows Detected at ETF
Thu, Oct 23, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: IYJ, NSC, PCP, ITW Exchange traded funds (ETFs) trade just ...

SPDR Barclays Convertible Securities ETF Experiences Big Outflow
Thu, Oct 23, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: CWB Exchange traded funds (ETFs) trade just like stocks, but ...

Insiders Pile Into Holdings of AIRR ETF
Thu, Oct 23, 9:54 AM ET, by ETF Channel

A look at the weighted underlying holdings of the First Trust RBA American Industrial Renaissance ...

Why Parker Hannifin is a Top Socially Responsible Dividend Stock (PH)
Thu, Oct 23, 8:14 AM ET, by ETF Channel

Parker Hannifin Corp. (PH) has been named a Top Socially Responsible Dividend Stock by Dividend ...

Daily Natural Gas Related Bull 3x Shares (GASL) Enters Oversold Territory
Wed, Oct 22, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the Daily Natural Gas Related Bull 3x Shares ETF ...

LIT Crowded With Sellers
Wed, Oct 22, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the Lithium ETF (LIT) entered into oversold territory, changing ...

KOL Crowded With Sellers
Wed, Oct 22, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the Coal ETF (KOL) entered into oversold territory, changing ...

Shares of EEML Now Oversold
Wed, Oct 22, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the iShares MSCI Emerging Markets Latin America ETF (EEML) ...

ANGL Crosses Above Key Moving Average Level
Wed, Oct 22, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the Fallen Angel High Yield Bond ETF (ANGL) crossed ...

Affiliated Managers Group Takes Over #9 Spot From Actavis
Wed, Oct 22, 1:44 PM ET, by ETF Channel

In a study of analyst recommendations at the major brokerages, for the underlying components of ...

INKM Crosses Above Key Moving Average Level
Wed, Oct 22, 11:44 AM ET, by ETF Channel

In trading on Wednesday, shares of the SPDR SSgA Income Allocation ETF (INKM) crossed above ...

MDYV Crosses Above Key Moving Average Level
Wed, Oct 22, 11:34 AM ET, by ETF Channel

In trading on Wednesday, shares of the SPDR S&P 400 Mid Cap Value ETF (MDYV) ...

SRTY Makes Notable Cross Below Critical Moving Average
Wed, Oct 22, 11:34 AM ET, by ETF Channel

In trading on Wednesday, shares of the Proshares UltraPro Short Russell2000 ETF (SRTY) crossed below ...

CSJ: ETF Outflow Alert
Wed, Oct 22, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: CSJ Exchange traded funds (ETFs) trade just like stocks, but ...

Proshares Short QQQ Experiences Big Inflow
Wed, Oct 22, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: PSQ Exchange traded funds (ETFs) trade just like stocks, but ...

IVW, AMZN, PG, DIS: Large Inflows Detected at ETF
Wed, Oct 22, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: IVW, AMZN, PG, DIS Exchange traded funds (ETFs) trade just ...

VIS, HON, FDX, GD: ETF Outflow Alert
Wed, Oct 22, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: VIS, HON, FDX, GD Exchange traded funds (ETFs) trade just ...

FXG, KR, PPC, STZ: ETF Inflow Alert
Wed, Oct 22, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: FXG, KR, PPC, STZ Exchange traded funds (ETFs) trade just ...

18.2% of XOP Holdings Seeing Recent Insider Buys
Wed, Oct 22, 9:44 AM ET, by ETF Channel

A look at the weighted underlying holdings of the SPDR S&P Oil & Gas Exploration ...

XHE Crosses Above Key Moving Average Level
Tue, Oct 21, 4:14 PM ET, by ETF Channel

In trading on Tuesday, shares of the SPDR S&P Health Care Equipment ETF (XHE) crossed ...

JPX Makes Notable Cross Below Critical Moving Average
Tue, Oct 21, 4:14 PM ET, by ETF Channel

In trading on Tuesday, shares of the Proshares UltraShort MSCI Pacific ex-Japan ETF (JPX) crossed ...

SPDR Russell 1000 (ONEK) Shares Cross Above 200 DMA
Tue, Oct 21, 4:14 PM ET, by ETF Channel

In trading on Tuesday, shares of the SPDR Russell 1000 ETF (ONEK) crossed above their ...

MDIV Crosses Above Key Moving Average Level
Tue, Oct 21, 4:14 PM ET, by ETF Channel

In trading on Tuesday, shares of the Multi-Asset Diversified Income Index Fund ETF (MDIV) crossed ...

BBRC Crosses Above Key Moving Average Level
Tue, Oct 21, 4:14 PM ET, by ETF Channel

In trading on Tuesday, shares of the EGShares FTSE Beyond BRICs ETF (BBRC) crossed above ...

PFI Crosses Above Key Moving Average Level
Tue, Oct 21, 4:14 PM ET, by ETF Channel

In trading on Tuesday, shares of the PowerShares DWA Financial Momentum Portfolio ETF (PFI) crossed ...

Related videos | all videos »
  More articles:  1 2 3 4 5 6 7 next »

ABOUT US »   ADVERTISE »   CONTACT US »   TERMS OF USE & PRIVACY POLICY »

The Best (and Worst) Emerging Markets ETFs over the past 3 years | Self Directed Investor | Copyright © 2008 - 2014, All Rights Reserved

Any ideas and opinions presented in Self Directed Investor content are for informational and educational purposes only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners. In no way should any content contained herein be interpreted to represent trading or investment advice. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All site visitors agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.

SDI is associated with: ValueForum.com -- a subscription-based online social networking forum of over 1000 individual investors. | MarketNewsVideo.com -- videos appearing on SDI are produced by Market News Video. | TickerTech.com -- stock quote content appearing on SDI is at least 20 minutes delayed and is powered by Ticker Technologies. | GoldStockStrategist.com -- Edited by Scott V. Nystrom, PhD, Gold Stock Strategist provides analysis on gold mining companies.