Vanguard FTSE Emerging Markets ETF
Best Emerging Markets ETFs to Add and Diversify Your Portfolio
EM Fundamentals Look Healthy Despite Recent Volatility
The title of Shakespeare’s sixteenth century play “Much ado about nothing” is now a common phrase that translates to making a big fuss out of something insubstantial. How might this relate to current market noise on emerging markets? Emerging markets (or EM) continue to face volatility in today’s investment environment, but these swings are perennial […]
Europe and China ready to jump-start their economies
Unconventional stimulus measures from central banks usually end up injecting liquidity in global financial markets. They’re especially relevant to emerging market economies.
How Emerging Market Funds Kept Their Momentum
In the current market scenario, the global markets (ACWI) (VTI) (VEU) are mainly driven by the monetary stimulus provided by the central banks.
Minimum-Volatility Funds Provide Cushion During Downturns
Minimum-volatility funds provide cushion during high volatility. These funds invest in low beta stocks and sectors that weather periods of volatility.
Must-know: Why the Fed drove up emerging market asset prices
Many economists, like the Nobel Prize–winning Paul Krugman, believe that the Fed acted as a “white knight” in 2008, saving the global economy in the dire aftermath of the financial crisis.
Why India Looks Like an Attractive Emerging Market
Timothy Moe, chief equity strategist for the Asia-Pacific region at Goldman Sachs (GS), believes that the long-term prospects for India are the best among the emerging markets.
Unemployment in Mexico holds steady, finally some good news
May unemployment figures were marginally stable compared to April Unemployment is a key indicator of economic health. It’s a lagging indicator, and that means it’s better at confirming trends, especially downward trends, since unemployment rises faster than it falls. Unemployment holds steady, in line with PMI employment indicator The June PMI showed a continued slowdown […]
Stellar returns: Why you should consider frontier markets
While a traditional emerging market benchmark is up 1.5% year-to-date, frontier, or “pre-emerging” markets, have been performing well.
Christine Lagarde of the IMF sees a 3-speed economy (Part 1)
Christine Lagarde, the managing director for the International Monetary Fund, sees a three-speed global economy In her speech at Brookings Institution in early June, Lagarde mentioned that the global economy has shifted this year towards a three-speed economy, versus the two-speed economy coined by PriceWaterhouseCoopers half a year ago. You can broadly categorize the three […]
Notable Gainers and Losers among Major Currency Pairs
Major Asian currency pairs were trading on a negative bias against the US dollar on August 12, 2016. The US dollar broadly rose against the other currencies.
Why is gold so important in India?
India is the largest gold importer in the world, yet the government continues adding limitations to importing gold into the country Many factors—including low credit and the continued depreciation of the Indian Rupee—have led the government to instill several gold importing restrictions since the beginning of the year. It seems now that every few weeks, the […]
Why Brazilian consumers are becoming pessimistic
Consumer expectations surveys are helpful for analysts Consumer expectations drive the trade-off consumers make between spending and saving. Both saving and spending are important for economic growth. More spending means there’s more demand for products, so businesses increase revenues and profits. More saving, though, means banks have more capital to lend out to businesses to […]
Dump the MSCI Brazil Index (EWZ) for a hedged option, avoid the FX risk (Part 2)
Continued from Part 1 The Brazilian real has depreciated over 10% since mid-May, and will likely just get worse The U.S. dollar is likely to strengthen into Q3 2013 for several reasons. The first reason is that the tapering consensus is that the Federal Reserve will start ramping down its bond buying program around September. This will […]
Stanley Druckenmiller Exited Position in EEM
Stanley Druckenmiller also sold his position in the iShares MSCI Emerging Markets ETF (EEM).
Diversify Broadly and Consider Alternative Investments
Rising correlation across asset classes is a sticky problem that investors face while investing in today’s markets.
Dollar Index Has Been Falling since Start of 2017
On a year-to-date basis, the dollar index has fallen nearly 9.5% as of August 2, 2017.
The Role of Emerging Markets in Global Green Bond Issuance
Over the last ten years, the green bonds (GRNB) universe has expanded and diversified, holding 600 bonds from 24 countries in 23 currencies.
Must-know: Key questions to ask when selecting an ETF
iShares now offers 20 low-cost Core ETFs that are a great starting point to consider as core holdings for your portfolio.
What Goldman Sachs Recommends for Yandex
Goldman Sachs (GS) believes Yandex (YNDX) will show a strong performance in the near future.
Mexico’s growth picks up in June, what will drive growth? (Part 1)
The latest global activity indicator showed a meaningful increase in economic activity The global activity economic indicator in Mexico (EWW) is a gauge of GDP performance by broad industry sectors. It’s published monthly by the Mexican Institute for Statistics and Geography. The global economic indicator indices allow investors to distinguish between growth in the industrial and […]
Dalio’s Bridgewater Associates Increased Its Holdings in EWZ
Ray Dalio increased his firm’s holdings in the iShares MSCI Brazil Capped ETF (EWZ) in 2Q16.
IMF: Rising Emerging Market Corporate Debt Could Lead to Crisis
In the last ten years, the corporate debt of emerging market economies (EEM) (VWO) (EDC) has been increasing gradually.
Emerging Markets Posted Stronger Gains in Year after Brexit Vote
Economic reforms by the Indian government and improvements in the manufacturing and automobile sectors are the main drivers of EEM.
Microsoft’s Windows Phone Sales Continued to Fall in Fiscal 2Q16
Microsoft stated that its Windows Phone revenue continued its fall in fiscal 2Q16 by 49% on a YoY basis.
Why Brazil’s equity market keeps dropping (Part 1)
Several negative factors have come combined to cause a steep drop in the equities market Over the past month, the main Brazilian ETF, EWZ, has dropped 20% in value. Below is a recap of the negative chain of events that led to this fall and how likely the market will recover. Social unrest: Why Brazil’s equity market […]
Why the Service Sector’s Contribution to Brazil Is Important
The service sector is the main contributor to Brazil’s GDP and job creation, but it’s currently suffering from structural weakness and poor international performance.
The big 3 ETF providers in the US—iShares, SPDR, and Vanguard
In the U.S., Blackrock (BLK), State Street GA (STT), and Vanguard are the top three ETF providers. They have a 40.1%, 22.3%, and 20.7% market share, respectively.
Why the services sector in Brazil continues to expand, but slowly
The Business Activity index (the key index for the Services PMI) remained unchanged, at 51.0. While Transport and Storage reported the fastest growth, the expansion was evenly mediocre across most of the sectors surveyed.
Bridgewater Increased Holdings in iShares MSCI Brazil Capped ETF
Bridgewater Associates is one of the prominent hedge fund management firms.
Consider Allocating to Emerging Market Small Caps
Emerging markets also appear cheap at the moment compared to US stocks. EEMS is likely to be more volatile (VXX) than EEM.
Why Goldman Sachs Is Optimistic about Alibaba
Alibaba was trading at $169 on September 8, 2017. Its 52-week high is $177 and its 52-week low is $86.01.
Labeled Green Bonds’ Significance to Investors
Global climate leaders have set a $1 trillion target for green finance by 2020, which would require a tenfold increase in global green bonds issuance.
Brazil unemployment steadily decreasing
Unemployment may be a lagging indicator, but Brazil’s steady unemployment downtrend is greatly reassuring that the economy has a solid base. Unemployment is a basic indicator of the economic performance of an economy. A low is a basic requirement for a country to achieve its economic growth potential. In the case of Brazil, unemployment has […]
Why Malaysian Inflation Declined Again in July
Consumer prices in Malaysia grew 3.6% in June 2017, compared with its 3.9% rise in May 2017.
Why the Rally in Emerging Markets Is Likely to Continue
The rally in emerging markets (VWO) has mainly been driven by higher earnings growth on the back of an improved business environment, rising exports, and strengthening corporate balance sheets.
The Rise of Factory Automation in China
The rise of factory automation in China (GCH) has been rapid and unprecedented. China is the largest market for robots and automated parts.
Coming Full Circle: Revisiting India’s History
This resurgence in economic strength can be largely attributed to then finance minister Manmohan Singh’s new economic policy of liberalization, privatization, and globalization.
Emerging Market Equities See Positive Flows in April
The iShares MSCI Emerging Markets Minimum Volatility ETF (EEMV) and several other emerging-market ETFs attracted positive flows totaling $0.3 billion for the week ended May 1, 2015.
Long-term implications of a disconnect between news and strong equity markets
In the short term, recent market action isn’t as irrational as it might appear. First, there’s no clear link between these events and near-term economic or earnings growth.
Must-know: Risks of investing in the frontier
You need to exercise caution while investing in frontier markets due to problems of liquidity and high concentration in the finance sector.
Bridgewater: What Are Ray Dalio’s Top Investing Ideas?
Founded by Ray Dalio, Bridgewater Associates’ top sell in the third quarter was the iShares MSCI Emerging Markets ETF (EEM).
Why You Shouldn’t Write Off Emerging Market Stocks Just Yet
2015 was a tumultuous year for emerging markets, to say the least. According to the IIF, emerging market assets registered outflows of $735 billion last year.
New bond supply spikes on Chinese financials and Walgreens issues
In a rare week, emerging market (EMB) (VWO) borrowers were the most prolific in U.S. investment-grade bond markets.
Brazil consumer confidence levels off after sustained decline
Consumer confidence in Brazil seems to have leveled off after several months of decline, showing that the current situation has improved. The consumer confidence index, published by the IBRE in Brazil, posted a minimal decline of 0.4%. The value comes after six months of consecutive declines and a flat reading last month. The index is […]
China’s PMI shows red all over the tape
While the overall PMI was no surprise due to the Flash PMI release, the surprise came from several drivers falling below 50 The China PMI Flash a week ago had foreshadowed what would be a bad PMI reading, but the breakdown by indices was able to disappoint even more. Hongbin Qu, HSBC’s Chief Economist for China & Co-Head of […]
Why the Make in India campaign is key to manufacturing
India’s newly formed government intends to strengthen ties with the U.S. in the manufacturing domain. “The Make in India campaign is a Lion’s Step towards making the country a destination for global manufacturing,” said Modi.
Why emerging markets have underachieved since 2013
I’ve been writing a lot lately about investing in emerging markets. It’s no wonder, then, that many investors are asking me for more details regarding my views of emerging market debt and equities.
Should you worry about the growing debt in emerging markets?
Overall, emerging markets have debt levels relative to both gross domestic product and income that are still considerably lower than those of developed markets.
Emerging markets are better positioned for the end of cheap money
Most major emerging economies are engaging in various forms of multi-year reform programs in hopes of making their growth less volatile and their financial systems more stable.
Must-know truths about emerging market investing
However, regardless of what sparked the latest sell off, the correction we are seeing, like the ones we saw in May and June, is a good reminder of these three truths about emerging market investing.
Why is Mexico different from other emerging markets?
What sets Mexico apart from many other emerging economies is that it has the combination of some key factors for success.
Emerging and advanced market divide impacts sovereign risk
A financial or economic crisis in a foreign country could affect other countries included in the asset class or in the geographic area. Bond spreads could widen for other affected countries, despite the fact that their economic fundamentals were actually improving. This is especially true for emerging market debt.
Must-know: Where investors can find value
Outside of the United States, investors, particularly those with little emerging market (or EM) exposure, should take another look at EM stocks.
Key highlight: The new BRICS Contingent Reserve Arrangement
Another highlight of the Summit was the Contingent Reserve Arrangement – a reserve pool worth 100 billion USD to be set aside for liquidity measures and crisis protection – which will work in tandem with the NDB.
Must-know: Investor outlook—emerging market equities
With China (FXI) announcing a gross domestic product (or GDP) growth rate of 7.5% for the second quarter and Turkey’s central bank governor suggesting additional interest-rate cuts, emerging markets seem all set to rise.
Why is inflation targeting so important for investments?
Central banks and governments try to maintain prices relatively stably and predictably and they direct their monetary policy to achieve this goal.
Is Argentina Back in the Game, or Are Dark Clouds Here to Stay?
For more than a decade, the outgoing party’s continual resistance to honoring debt led to Argentina’s exclusion from international financial markets.
A Trump Presidency: What Are the Odds?
With Hillary Clinton leading Donald Trump in the polls before Tuesday’s US presidential election, the projected results are still uncertain. However, a Trump victory may not be good news for those invested in emerging markets.
Dump the MSCI Brazil Index (EWZ) for a hedged option, avoid the FX risk (Part 1)
The Brazilian real has depreciated over 10% since mid-May, and will likely just get worse Over the past three months, the MSCI Brazil Index (EWZ) has fallen 16%. The index is a dollar denominated index of the Brazilian equities market, so it’s subject to foreign exchange fluctuation. During the past three months, the Brazilian real […]
Must-know: Mexican indicators confirm a positive turnaround
Turnaround signals Earlier this month, several macro indicators started giving faint signals of turnaround for Mexico (EWW). While quarterly GDP was down, PMI started pointing towards a reversal in the negative course. Given that PMI is forward-looking, positive macroeconomic data this month have been key in confirming the positive trend. Industrial production increasing Industrial production was […]
Key factors that continue to affect emerging markets
Emerging market struggle Aside from the rates hike as well as the effect in inflows and current accounts of emerging markets, there were other factors rooting against emerging markets. China’s slowdown and change of policy Then came the Q2 figure for China’s GDP, which had investors on edge about a hard landing. While the world […]
Why frontier and emerging markets are separate asset classes
With all the turmoil in emerging markets recently, some investors may be especially wary of investing in so-called frontier markets. Russ explains why frontier and emerging markets are separate asset classes, each deserving of a strategic allocation.
Why Ray Dalio Thinks ‘The World Has Gone Mad’
On November 5, Bridgewater Associates founder Ray Dalio wrote that he thinks “the system of making capitalism work well for most people is broken.”
Why you should invest in the emerging markets
Emerging markets are sought by investors for the prospect of high returns.
Business overview: The cement industry
Cement is classified into various categories based on its composition and specific end uses. Cement is classified as either portland, blended, or specialty cement. Investors can access the cement industry through the Vanguard FTSE Emerging Markets ETF (VWO).
Must-know: Cement’s final manufacturing process
The blend is heated in a rotary kiln. Gas, oil, or pulverized coal are used to ignite the flame at one end of the kiln. The clinker from the kiln passes into a cooler, where convective airflow cools the clinker for subsequent handling and grinding.
Can Dalio’s Bridgewater Repeat Its Outperformance in 2019?
Bridgewater Associates, the largest hedge fund in the world, had 303 positions at the end of the first quarter.
How Investors Could Position for the Next Downturn
While talking to CNBC in September, Ray Dalio said that investors should get “more defensive” in the stock market, and warned that stocks’ upside looks limited.
What US Investors Need to Know about Emerging Market Risks
According to the Institute of International Finance, the portfolio flows into emerging markets (EEM) slowed to $2.2 billion in August from $13.7 billion in July.
Why Commodities Have Outperformed Other Assets in 2018
With global rates normalizing, geopolitics still posing major risks, and with one of the longest bull runs in U.S. stocks apparently stalling, 2018 might be a year of paradigm shift.
Emerging Markets Offer Attractive Opportunities
Over the past decade, EM (emerging market) debt has delivered stellar returns compared to other fixed income categories, except high yields.
What February PMI Reports Say about Emerging Markets
In this series, we’ll analyze manufacturing and service activity in China, Brazil, India, Russia, Mexico, and Indonesia in February 2018.
Analyzing Indonesia’s Manufacturing Activity in November 2017
Indonesia’s manufacturing activity in November According to a report by Markit Economics, Indonesia’s (IDX) (ASEA) manufacturing PMI (purchasing managers’ index) rose to 50.4 in November from 50.1 in October 2017, marking the fourth consecutive month of expansion. In November, Indonesia’s manufacturing PMI was driven by the following: production output and volume rose, marking a second consecutive month of expansion in […]
Why It’s Imperative to Look for Yield Alternatives
In September, the Federal Reserve announced it will trim its $4.5 trillion balance sheet.
Why Emerging Markets Are Rallying
There are a lot of reasons behind the sharp rally in EMs (SCHE). The prominent reason is that the GDP growth in many of these nations has improved in the last few quarters partially on the back of the rise in commodity prices like copper and oil.
1 Technical Trend That Could Affect Gold Prices
Investor complacency doesn’t hide the fact that there are financial risks to QT. Forty percent of the Fed’s balance sheet unwind is in mortgage-backed securities at the same time that the housing market is showing signs of slowing.
What’s the IMF’s View on Tax Reform?
According to the IMF (International Monetary Fund), a moderate progressive tax system may not negatively impact economic growth in developed economies (SPY) (EZU).
Could Indian Economy Grow Faster after GST Implementation?
On a yearly basis, economic growth in India (INDA) showed a strong improvement of 9.2% in the first quarter of 2016.
How Emerging Economies Are Supporting Global Growth
According to the report provided by the World Bank in June 2017, global (ACWI) growth is expected to strengthen to 2.7% in 2017.
How Emerging Market Manufacturing Activity Is Trending
In this series, we’ll take a look at the manufacturing activity and service activity of major emerging economies (EEM) (VWO) in August 2017.
Greek Manufacturing Activity Continues to Expand in July 2017
Manufacturing activity in Greece In July 2017, the manufacturing PMI (purchasing managers’ index) in Greece (GREK) remained steady. Operating conditions improved marginally, largely driven by a rise in output. The business conditions improved for a second consecutive month as of July 2017. Consumer sentiment is improving in Greece (EEM ), with improved tourism and growth […]
Inflation in Indonesia Fell in July: Is It a Correction or Trend?
Inflation in Indonesia (EEM) in July 2017 stayed in line with the market expectation of 3.9%.
A Look at Consumer Confidence in South Korea in July 2017
South Korea’s (EWY) consumer confidence continued to remain steady at 111.2 in July 2017 compared to 111.1 in the previous month.
Can Improved Demand Help Malaysia’s Economy Expand in 2Q17?
The Malaysian economy gave us an impressive growth story in 1Q17, with its increased investments in infrastructure and private sector expansion.
Why Brazil’s Manufacturing Activity Lost Momentum in June 2017
Brazilian (ILF) manufacturers remain firmly optimistic about the country’s output growth in the next 12 months.
Indonesia’s Manufacturing Activity Fell in June 2017
The manufacturing PMI (purchasing managers’ index) in Indonesia (EIDO) fell to 49.5 in June 2017—compared to 50.6 in May 2017.
Indonesia Inflation Was Close to the Target in June 2017
Consumer prices in Indonesia (EEM) rose 4.4% on a YoY (year-over-year) basis in June 2017—compared to a 4.3% rise in May 2017.
Why Faber Thinks Emerging Markets Will Outperform US Markets
Marc Faber believes emerging markets (EDC) will outperform the US (SPY) (QQQ) markets going forward.
Indonesia Has High GDP Growth Expectations, but Will These Help Markets in 2017?
The World Bank is forecasting higher growth for Indonesia (IDX) at about 5.1% and 5.3% for 2017 and 2018, respectively.
Emerging Market’s Increasing Share in Global Growth and Its Impact
The improved growth in emerging markets was led by a cyclical recovery in Brazil (EWZ) and Russia (ERUS).
Why Emerging Markets Are Suffering in Current Environment
Since the US presidential election, emerging markets (EEM) have seen huge fluctuations.
Rethink Your Emerging Market Story
In the previous articles of this series, we discussed population and economic growth as the two major drivers leading to a rise in emerging markets (EMQQ).
Emerging Market Economic Growth Outpaced Developed Markets
In recent years, emerging markets have experienced rapid economic growth compared to developed markets.
Why Emerging Markets Have Better Demographics
Achieving higher returns amid the rising market volatility, record-low interest rates, and global uncertainties is a huge challenge for investors.
Why Emerging Market Risks Are Rising
The corporate debt level of most nonfinancial companies in emerging economies rose from $4.0 trillion in 2004 to $18.0 trillion in 2014, according to the IMF Global Financial Stability report.
Emerging Market Bond ETFs Have Seen Record-Breaking Flows in 2016
Looking closely at mutual fund and ETF flow data can provide some insight into how investors have approached the asset class this year.
The Giant Awakens: The Indian Growth Story
Not long ago, India was one of the Fragile Five: an unfortunate club of troubled emerging markets (FEO) (VWO) that were the worst hit by the 2013 taper tantrum.
Assessing Duquesne Family Office’s Holdings in 2Q16
Duquesne Family Office operates as an investment management firm. Billionaire investor Stanley Druckenmiller is the chair and CEO of the firm.
Could You Have Too Much Invested in US Equities?
Even though more than 49% of global capitalization is in the form of non-US equities, US investors allocate only 21% of their portfolios to them.