Global equities and exchange traded funds have bounced around in 2011 on the eurozone debt crisis and uncertainty over the global economic outlook.
If investors are looking for the ETFs that have been hardest over the past year for contrarian ideas, a good place to start is in international stock ETFs.
“Markets are pricing in the risks the world economy faces,”Aneesh Srivastava, chief investment officer at IDBI Federal Life Insurance Co., said on Bloomberg.”Slowing growth in developing countries is compounding the problems caused by Europe’s debt crisis and hurting investor sentiment.”
The fall of many global funds from their 2011 highs has been tough especially for emerging markets. The eurozone crisis ignited a downward spiral for markets, which was strengthened by the possibility of a double dip recession in the United States.
Here are some global ETFs that have been bloodied this year:
- iShares MSCI Germany Index (NYSEArca: EWG) This ETF has lost about 16.5% in the pat 12 months. Investors are waiting for the fiscal woes in Greece to subside, and the financial system to mend before European markets can rebound. Germany suffered a poor bond auction on Wednesday.
- PowerShares India (NYSEarca: PIN) This ETF has lost 27.6% over the past year. This fund has suffered with the outflows of emerging markets, and the growth rate for the country is down to 7-8% for the year.
- iShares FTSE Xinhua China 25 Index (NYSEArca: FXI) This ETF also suffered with the emerging markets outflows. FXI lost 20% over the past 12 months. China’s economy grew at a rate of 9.1% for the third quarter, compared to the U.S. at about 2%.
- iShares MSCI Brazil Index (NYSEArca: EWZ) This ETF is down about 20% over the past 12 months as well. The fact that the country is rich in natural resources makes this economy subject to the supply and demand cycles of the globe. The decline in commodities markets has taken this fund down with them.
- iShares MSCI BRIC Index Fund (NYSEArca: BKF) This ETF is down 21.5% for the past month. When the global economy does turn around, this fund will provide exposure to some of the most profitable markets.
iShares MSCI Germany - (click chart to enlarge)
Tisha Guerrero contributed to this article.
Disclosure: No positions