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

  • Other news: News from PR Newswire
| More

Get Rid Of Your Emerging Market ETF Volatility Problem Once And For All

Wed, Dec 5, 8:16 AM ET, by Michael Johnston

Emerging markets offer the potential for stellar returns during times of prosperity, however, they can also fall victim to rampant profit-taking when global markets encounter turbulence; at the first sign of economic uncertainty, emerging markets are usually among the first to sell off as investors scale back on risk exposure. Luckily, the expansion of the ETF universe has spawned several products that make it easy for investors to tap into lucrative growth opportunities overseas without incurring more volatility than they can stomach [see 1,400+ ETFdb Realtime Ratings].

Below we outline five ETFs that will help you get rid of your emerging market ETF volatility problem once and for all:

MSCI Emerging Markets Minimum Volatility Index Fund (EEMV)

This ETF aims to reflect the performance characteristics of a minimum variance strategy applied to large and mid cap equities across 21 emerging-market countries. Highlighting financial services, consumer defensive and communication corporations, EEMV has shown lower beta and volatility characteristics than its parent, the MSCI Emerging Markets Index (EEM). The graph below shows EEMV in green consistently outperforming EEM, while also featuring a smoother trend.

EEM vs. EEMV

 

S&P Emerging Markets Low Volatility Portfolio (EELV)

This index is designed to measure the performance of the 200 least volatile stocks from the S&P Emerging BMI Index, resulting in large holdings in financial services, industrials and utilities. Malaysia, South Africa and Taiwan are home to more than 50% of the firms, with minority representations for Latin American giants Brazil, Chile and Mexico. Since inception in January 2012, EELV has consistently outperformed GMM and maintained a positive return [see Free Report: How To Pick The Right ETF Every Time].

GMM vs EELV

 

Low Volatility Emerging Markets Dividend ETF (HILO)

This ETF follows a dividend-yield-weighted index that includes 30 stocks and is structured to deliver higher yields and lower volatility than market-cap-weighted emerging market indexes. Evenly representing all sectors, this fund is focused on South Africa, Turkey, India and China for high dividend securities. Compared to EMM, this ETF has not created such high returns, but it does feature fewer price swings.

EMM vs HILO

 

Region And Country-Specific Options

When looking for low volatility, most funds try to diversify their holdings, but others looking for niche markets stick to a specific region or country. These funds are a more difficult play because even though they are more stable than country-specific equity ETFs, they are more likely to fall prey to poor country conditions.

China Trendpilot ETN (TCHI)

RBS’s family of “TrendPilot” exchange-traded notes offers investors exposure to a dynamic trading strategy applied across a variety of asset classes. Each fund tracks a rules-based index that strategically shifts allocations based on a simple historical moving average, so when RBS's underlying index, China Treadpilot Index, is at or above its 100-day simple moving average, the fund goes long the underlying securities. If, however, the index closes below the simple moving average for five consecutive sessions, the ETF will shift exposure to "safer" short-term U.S. Treasuries. Compared to the FTSE China 25 Index Fund (FXI), TCHI is much more stable (excluding a pricing failure in November), but neither have shown positive returns in 2012.

FXI vs TCHI

Direxion S&P Latin America 40 RC Volatility Response Shares Holdings (VLAT)

Direxion debuted a suite of volatility response ETFs in early 2012 (including VLAT) that are designed to adjust exposure to stock market depending on currency conditions. When the markets are experiencing high levels of volatility, many investors may choose to shift their exposure towards less risky securities, such as Treasury bills. During periods of low volatility, a larger tilt towards risky asset classes may prove to be quite lucrative, as seen below. Compared to the Latin America 40 Index Fund (ILF), this ETF features not only more stable returns, but also higher returns. Like FXI and TCHI, neither have shown positive returns since early 2012.

ILF vs VLAT

[For more actionable ETF investment ideas, sign up for the free ETFdb newsletter]

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: "ETFs" Definition
SDI Glossary: "Option" Definition
SDI Glossary: "Trend" Definition
SDI Glossary: "Volatility Index " Definition
This Article's Word Cloud:   China   Compared   EELV   EEMV   ETFdb   ETFs   Emerging   Fund   Index   Latin   Markets   TCHI   This   VLAT   Volatility   also   average   below   consistently   country   emerging   exposure   five   fund   high   index   investors   lower   market   markets   more   moving   neither   positive   returns   securities   shift   shown   sign   simple   stable   stocks   than   that   they   this   underlying   volatility   when   will

| More

iShares Nasdaq Biotechnology Breaks Below 200-Day Moving Average - Notable for IBB
Thu, Aug 25, 4:14 PM ET, by ETF Channel

In trading on Thursday, shares of the iShares Nasdaq Biotechnology ETF (IBB) crossed below their ...

IHF Makes Notable Cross Below Critical Moving Average
Thu, Aug 25, 3:54 PM ET, by ETF Channel

In trading on Thursday, shares of the iShares U.S. Healthcare Providers ETF (IHF) crossed below ...

Vertex Pharmaceuticals Takes Over #81 Spot From Starbucks
Thu, Aug 25, 1:34 PM ET, by ETF Channel

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

PUI, SCG, WEC, SRE: Large Outflows Detected at ETF
Thu, Aug 25, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: PUI, SCG, WEC, SRE Exchange traded funds (ETFs) trade just ...

iShares MSCI Italy Capped ETF Experiences Big Outflow
Thu, Aug 25, 11:14 AM ET, by ETF Channel

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

IVE, T, PG, CSCO: Large Outflows Detected at ETF
Thu, Aug 25, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: IVE, T, PG, CSCO Exchange traded funds (ETFs) trade just ...

SVXY: ETF Outflow Alert
Thu, Aug 25, 11:14 AM ET, by ETF Channel

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

EBND: ETF Outflow Alert
Thu, Aug 25, 11:14 AM ET, by ETF Channel

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

VEA: Large Inflows Detected at ETF
Thu, Aug 25, 10:54 AM ET, by ETF Channel

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

NOBL, CTAS, HRL, GWW: ETF Inflow Alert
Thu, Aug 25, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: NOBL, CTAS, HRL, GWW Exchange traded funds (ETFs) trade just ...

TZA: ETF Inflow Alert
Thu, Aug 25, 10:54 AM ET, by ETF Channel

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

Vanguard Mid-Cap Value ETF Experiences Big Inflow
Thu, Aug 25, 10:54 AM ET, by ETF Channel

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

UVXY: Large Inflows Detected at ETF
Thu, Aug 25, 10:54 AM ET, by ETF Channel

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

XHS, ABC, WOOF, MOH: ETF Inflow Alert
Thu, Aug 25, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: XHS, ABC, WOOF, MOH Exchange traded funds (ETFs) trade just ...

SQQQ: ETF Inflow Alert
Thu, Aug 25, 10:54 AM ET, by ETF Channel

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

The DO Paradox: Analysts Bearish But Forecast 12.1% Gains
Thu, Aug 25, 8:14 AM ET, by ETF Channel

Analyst ratings can sometimes be complicated, and we here at ETF Channel have noticed a ...

The ESV Paradox: Analysts Bearish But Forecast 14.25% Gains
Thu, Aug 25, 8:14 AM ET, by ETF Channel

Analyst ratings can sometimes be complicated, and we here at ETF Channel have noticed a ...

KFRC Crosses Above Average Analyst Target
Thu, Aug 25, 8:14 AM ET, by ETF Channel

In recent trading, shares of Kforce Inc. (KFRC) have crossed above the average analyst 12-month ...

BMA Crosses Above Average Analyst Target
Thu, Aug 25, 8:14 AM ET, by ETF Channel

In recent trading, shares of Banco Macro S.A. (BMA) have crossed above the average analyst ...

Sum Up The Parts: IBB Could Be Worth $366
Thu, Aug 25, 8:14 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

GDX Crowded With Sellers
Wed, Aug 24, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the Gold Miners ETF (GDX) entered into oversold territory, ...

ProShares Ultra Gold Miners Getting Very Oversold
Wed, Aug 24, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the ProShares Ultra Gold Miners ETF (GDXX) entered into ...

iShares MSCI Global Gold Miners Getting Very Oversold
Wed, Aug 24, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the iShares MSCI Global Gold Miners ETF (RING) entered ...

NUGT Crosses Critical Technical Indicator
Wed, Aug 24, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the Daily Gold Miners Index Bull 3x Shares ETF ...

Notable Two Hundred Day Moving Average Cross - BIB
Wed, Aug 24, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the ProShares Ultra Nasdaq Biotechnology ETF (BIB) crossed below ...

Pharmaceutical (PPH) Shares Cross Below 200 DMA
Wed, Aug 24, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the Pharmaceutical ETF (PPH) crossed below their 200 day ...

See How International Business Machines Ranks Among Analysts' Top Dow 30 Picks
Wed, Aug 24, 11:54 AM ET, by ETF Channel

A study of analyst recommendations at the major brokerages shows that International Business Machines Corp. ...

MDY, MTD, IDXX, WWAV: Large Outflows Detected at ETF
Wed, Aug 24, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: MDY, MTD, IDXX, WWAV Exchange traded funds (ETFs) trade just ...

FM Crosses Below Key Moving Average Level
Wed, Aug 24, 11:14 AM ET, by ETF Channel

In trading on Wednesday, shares of the iShares MSCI Frontier 100 ETF (FM) crossed below ...

PSK, HSEB, PNC.PRP, USB.PRM: Large Outflows Detected at ETF
Wed, Aug 24, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: PSK, HSEB, PNC.PRP, USB.PRM Exchange traded funds (ETFs) trade just ...

RXI, MCD, TWX, TJX: ETF Inflow Alert
Wed, Aug 24, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: RXI, MCD, TWX, TJX Exchange traded funds (ETFs) trade just ...

AGQ Crowded With Sellers
Wed, Aug 24, 10:54 AM ET, by ETF Channel

In trading on Wednesday, shares of the ProShares Ultra Silver ETF (AGQ) entered into oversold ...

SLV Crosses Critical Technical Indicator
Wed, Aug 24, 10:54 AM ET, by ETF Channel

In trading on Wednesday, shares of the iShares Silver Trust ETF (SLV) entered into oversold ...

ETFS Physical Silver Shares Getting Very Oversold
Wed, Aug 24, 10:54 AM ET, by ETF Channel

In trading on Wednesday, shares of the ETFS Physical Silver Shares ETF (SIVR) entered into ...

PowerShares DB Silver Fund Getting Very Oversold
Wed, Aug 24, 10:54 AM ET, by ETF Channel

In trading on Wednesday, shares of the PowerShares DB Silver Fund ETF (DBS) entered into ...

Five9 Reaches Analyst Target Price
Wed, Aug 24, 8:14 AM ET, by ETF Channel

In recent trading, shares of Five9, Inc (FIVN) have crossed above the average analyst 12-month ...

PBYI Crosses Above Average Analyst Target
Wed, Aug 24, 8:14 AM ET, by ETF Channel

In recent trading, shares of Puma Biotechnology, Inc. (PBYI) have crossed above the average analyst ...

Rexnord Reaches Analyst Target Price
Wed, Aug 24, 8:14 AM ET, by ETF Channel

In recent trading, shares of Rexnord Corp (RXN) have crossed above the average analyst 12-month ...

Nordson Reaches Analyst Target Price
Wed, Aug 24, 8:14 AM ET, by ETF Channel

In recent trading, shares of Nordson Corp. (NDSN) have crossed above the average analyst 12-month ...

LZB Crosses Above Average Analyst Target
Wed, Aug 24, 8:14 AM ET, by ETF Channel

In recent trading, shares of La-Z-Boy Inc. (LZB) have crossed above the average analyst 12-month ...

ASML Crosses Above Average Analyst Target
Wed, Aug 24, 8:14 AM ET, by ETF Channel

In recent trading, shares of ASML Holding NV (ASML) have crossed above the average analyst ...

ANGI Crosses Above Average Analyst Target
Wed, Aug 24, 8:14 AM ET, by ETF Channel

In recent trading, shares of Angie's List Inc. (ANGI) have crossed above the average analyst ...

CLVS Crosses Above Average Analyst Target
Wed, Aug 24, 8:14 AM ET, by ETF Channel

In recent trading, shares of Clovis Oncology Inc (CLVS) have crossed above the average analyst ...

Medidata Solutions Reaches Analyst Target Price
Wed, Aug 24, 8:14 AM ET, by ETF Channel

In recent trading, shares of Medidata Solutions, Inc. (MDSO) have crossed above the average analyst ...

F5 Networks Reaches Analyst Target Price
Wed, Aug 24, 8:14 AM ET, by ETF Channel

In recent trading, shares of F5 Networks, Inc. (FFIV) have crossed above the average analyst ...

Delphi Automotive Moves Up In Analyst Rankings, Passing Allegion
Tue, Aug 23, 1:24 PM ET, by ETF Channel

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

See How Exxon Mobil Ranks Among Analysts' Top Dow 30 Picks
Tue, Aug 23, 1:24 PM ET, by ETF Channel

A study of analyst recommendations at the major brokerages shows that Exxon Mobil Corp. (XOM) ...

IGV, MSFT, ORCL, ADBE: ETF Outflow Alert
Tue, Aug 23, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: IGV, MSFT, ORCL, ADBE Exchange traded funds (ETFs) trade just ...

LABU: ETF Outflow Alert
Tue, Aug 23, 10:54 AM ET, by ETF Channel

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

BWX: ETF Outflow Alert
Tue, Aug 23, 10:54 AM ET, by ETF Channel

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

  More articles:  1 2 3 4 5 6 7 next »

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

Get Rid Of Your Emerging Market ETF Volatility Problem Once And For All | Self Directed Investor | Copyright © 2008 - 2016, 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 serious 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.