Oct. 2, 2015, 4:32 AM
- Emerging markets are on track to suffer their first annual net outflow since 1988, the Institute of International Finance predicts.
- Foreign inflows are set to halve to $548B this year and outflows are expected to come in at $540B. With local outflows accelerating, net flows will turn negative.
- The flight from emerging markets "has been driven primarily by internal factors, basically reflecting a sustained slowdown in EM growth and amplified by rising uncertainty about China’s economy and policies," the IIF says.
- EMs have also been hit by the commodities rout, to which many are exposed. Weak currencies and political turmoil in countries such as Brazil and Turkey are increasing the risks.
- While those risks remain high, there is little incentive for investors to return to EMs.
- ETFs: EWZ, BRF, BRZU, BZF, EWZS, BRXX, BRAQ, BZQ, BRAZ, BRAF, UBR, DBBR, FBZ, TUR, EMB, PCY, TEI, EDF, ELD, ECON, EDD, EMLC, TKF, GHI, VWOB, CEW, EMD, EDI, MSD, EMHY, HYEM, EMIF, SBW, PXR, FEO, EMQQ, LEMB, EMAG, EMCG, EBND, AYT, PGD, PFEM, JEM, EMEY, EMSH, EMDI, BCHP, FEMB
Apr. 6, 2015, 5:29 AM
- Facing decade-high inflation, a fiscal crisis and water rationing, more than a million Brazilians took to the streets last month to protest government corruption and mismanagement. In China, growth is slowing as property prices fall, propelling more than 1,000 iron ore mines toward financial collapse. In Russia, citizens are deserting their nation’s banks, switching savings into U.S. dollars. Such snapshots of growing distress in the world’s largest emerging markets are echoed among many of their smaller counterparts.
- In aggregate, the 15 largest emerging economies experienced their biggest capital outflow since the crisis in the second half of last year.
- These trends, analysts say, signal a “great unravelling” of an emerging markets debt binge that has swollen to unprecedented dimensions. The pain inflicted by this capital flight is being felt in the real-life economies of vulnerable countries and in a surging number of emerging market corporations that are forecast to default on their debts.
- Source: FT
- ETFs: EMB, PCY, ELD, ECON, EMLC, CEW, VWOB, EMIF, PXR, LEMB, EMCG, EMAG, EBND, AYT, PGD, EMRE, PFEM, JEM, EMSH, FEMB
Apr. 7, 2014, 9:10 AM
- Twitter's down 32% this year, Facebook's off 20% in a month, and biotech nearly that much, but money is returning to the industrial sector. While the Nasdaq 100 posted its worst one-day drop since 2011 on Friday and last week fell for the 3rd week in 4, the Industrial Select SPDR (XLI) gained 1.6%.
- In the year's first quarter, the XLI had lost 1.4%, putting it in 9th place among 10 S&P 500 groups.
- "You’re seeing the beginning of investors shifting money ahead of a wave of spending,” says Drew Nordlicht of HighTower Advisors. “The expectation is, as the economy begins to kick into a higher gear, corporate America will utilize the amount of cash to spend on capital expenditures."
- GE comprises more than 10% of the XLI, and UTX, Union Pacific, Boeing, and 3M round out the top 5, each with holdings in the 5% range.
- Related ETFs: XLI, PHO, CGW, PIO, VIS, ITA, FIW, PPA, IGF, CARZ, IYJ, XAR, IPN, EMIF, FIDU, PRN, UXI, FXR, PXR, EXI, GII, EVX, FLM, RGI, SIJ, PSCI, NFRA, TOLZ, AXID
Mar. 26, 2014, 12:16 PM
- The ProShares DJ Brookfield Global Infrastructure ETF (TOLZ) will track an index of companies have key operations in the global infrastructure sector, with a preference for companies that focus on long term and stable cash flows.
- Within the manufacturing sector there are only a few ETFs that offer pure exposure to the infrastructure sub-sector, but with an expense ratio of .45%, TOLZ undercuts them all.
- Other infrastructure ETFs: BRXX, IGF, EMIF, CHXX, PXR, GII, FLM, KFYP, NFRA
Nov. 2, 2011, 11:25 AM
President Obama urges (live audio) Congress to pass the infrastructure portion of his jobs act - including working on 215 of the nation's structurally deficient bridges. If Congress clears the path, will infrastructure-related ETFs GII, IGF, and PXR get a boost?| Nov. 2, 2011, 11:25 AM | 13 Comments