Examining the MSCI emerging markets and developed markets country indexes, we found 15 countries with consistently positive total returns for 10 years.
Those countries with "perfect" records are (with proxy ETFs noted):
| MALAYSIA | EWM |
| PHILIPPINES | EPHE |
| THAILAND | THD |
| COLOMBIA | GXG |
| MEXICO | EWW |
| PERU | EPU |
| SOUTH AFRICA | EZA |
| DENMARK | EDEN |
| SWEDEN | EWD |
| SWITZERLAND | EWL |
| SINGAPORE | EWS |
Those countries with nearly perfect records are (with proxy ETFs noted):
| INDONESIA | IDX |
| KOREA | EWY |
| CHILE | ECH |
| USA | VTI |
This table shows the price returns, gross (total) returns and 1-year trailing yields expressed in US dollars for emerging market countries as of December 24, 2012 (no adjustment for local tax withholding).
Those countries with "perfect" records have their names shaded green. Those with nearly perfect records have their names shaded yellow.
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The yields for the indexes are not the yields for the proxy ETFs which may not duplicate the index, and which have expenses that reduce the yield to investors.
See prior article on local tax withholding rates.
The significance of local taxes would be substantially reduced if dividends to US investors become taxed at increased ordinary rates in 2013 for top earning investors. As of this time, most countries have lower dividend tax withholding rates than the anticipated US dividend tax rates, so that income to regular taxable accounts would not be compromised by the withholding.
This table shows the price returns, gross (total) returns and 1-year trailing yields expressed in US dollars for developed market countries as of December 24, 2012 (no adjustment for local tax withholding).
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Disclosure: QVM has positions in EWM, EPHE, and THD as of the creation date of this article (December 26, 2012). We certify that except as cited herein, this is our work product. We received no compensation or other inducement from any party to produce this article, but are compensated retroactively by Seeking Alpha based on readership of this specific article.
General Disclaimer: This article provides opinions and information, but does not contain recommendations or personal investment advice to any specific person for any particular purpose. Do your own research or obtain suitable personal advice. You are responsible for your own investment decisions. This article is presented subject to our full disclaimer found on the QVM site available here.
