Top 5 Country ETFs from the Motley Fool CAPS Survey

According to Todd Wenning of TheStreet.com, Motley Fool CAPS investors can help you determine the best regional ETFs for your portfolio; specifically, you can benefit from the collective minds of 95,000 stock market enthusiasts.

The survey produced the following "Top 5" list:

• iShares MSCI Canada (EWC)
• iShares MSCI South Africa (EZA)
• iShares MSCI Sweden (EWD)
• iShares MSCI South Korea (EWY)
• SPDR S&P Emerging Middle East and Africa (GAF)

It's fairly easy to discern why this particular herd favors Canada, South Africa and the Middle East. Resource-rich countries have played a big part in the commodities boom. However, it's a bit more difficult to understand why the BRIC countries (Brazil, Russia, China and India) have been shut out.

Mr. Wenning asserts that Motley Fool CAPS investors are unique, that they focus on fundamentals rather than what is "hot." More likely, this particular herd focused on the commodity boom vis-a-vis which countries/regions have the most "stuff."

Still, CAPS investors did shy away from resource-rich Brazil and oil rich Russia. Why did the BR in BRIC miss the "Top 5?" And why was this particular herd underwhelmed by the emerging growth stories in China and India?

BRIC countries, particularly China and India, have already lost a bit of their luster. The losses on Chinese stocks alone have stoked talk about a bursting of the emerging market balloon.

Perhaps the CAPS herd, then, is moving in the direction of developed countries. Consider the fact that Canada, Sweden and South Korea all fit the model for developed economies.

Only one thing here is for certain: The 95,000-strong CAPS herd doesn't subscribe to the idea that the previous 6 months has any bearing on the next 6 months. After all, the Claymore BRIC Fund (EEB) has outperformed all of the entries in the above-mentioned "Top 5."

Disclosure Statement: ETF Expert is a web log ("blog") that makes the world of ETFs easier to understand. Pacific Park Financial, Inc., a Registered Investment Advisor with the SEC, may hold positions in the ETFs, mutual funds and/or index funds mentioned above. Investors who are interested in money management services may visit the Pacific Park Financial, Inc. web site.

Comments

[Fred S]

Picking a starting point for comparison makes all the difference. If you plot comparisons for the last three months, EEB comes in at the BOTTOM, about 15% below EWD.