U.S. stocks were mostly green in today's session, though there was a good deal of red in global stocks -- notably in emerging markets. The popular emerging markets ETF iShares MSCI Emerging Markets Index (EEM) is down close to 1% as I type this, and the iShares MSCI Brazil Capped Index ETF (EWZ) is down more than 2%.
In the chart below, I plot the recent decline of the four large BRIC emerging market country ETFs: Brazil (EWZ), Russia (RSX), India (EPI), and China (FXI). While all four country ETFs have declined between 8% and 20% during the past six weeks, the various woes afflicting each country appear to be country-specific to a large extent. However, obviously the issues affecting China's manufacturing base and export market have a significant upstream impact on Brazil.
Emerging markets in general have been struggling of late, but difficulties in Brazil, India, and China have helped to fuel a global sell-off. Going forward, investors will be well-served to keep an eye on all four components of the BRIC block, as well as aggregated BRIC ETFs -- such as the most popular issue in this space, the iShares MSCI BRIC Index (BKF).
For those who are interested in evaluating the risk and uncertainty in emerging markets in general, the recent VEXXM as a measure of emerging markets volatility and risk is recommended reading for some background and information on VXEEM, the CBOE Emerging Markets ETF Volatility Index.