Will BRIC Markets Do as Well in the Coming Decade?
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Monday, Nov 189:19 AMPicks from Barron's ETF roundtable
Monday, Nov 189:19 AM| 1 Comment
- It's worth paying another 50 or 60 basis points in expenses for a good ETF product not tracking a vanilla index, says RiverFront Investment's Rod Smyth at a Barron's ETF roundtable. One favorite in emerging markets is PowerShares' FTSE RAFI Emerging Markets Portfolio (PXH) which tilts towards factors like book value and cash flow and offers bigger weighting to sectors like energy. Bullish on Japan, his pick is WisdomTree's Japan SmallCap Dividend Fund (DFJ). Another favorite is PowerShares' FTSE RAFI Developed Markets Ex-U.S. Portfolio (PXF).
- Emerging markets ETFs: EEM, VWO, DEM, EDC, DGS, EDZ, EEMV, EEB, SCHE, EDIV, DVYE, IEMG, BIK, BKF, EEV, EWX, PIE, CEW, ADRE, HILO, EUM, FNI, EET, GMM, EEMS, PXH, EELV, BBRC, FEMS, EMDD, EEME, BICK, EMCR, DBEM, EWEM, JEM, FEM, EVAL, TLTE, EMLB, EEHB, EGRW, EMSA, EMFT, EMHD, EMDR, FNDE
- Japan ETFs: DXJ, EWJ, DFJ, NKY, DBJP, EZJ, EWV, SCJ, JSC, JPP, ITF, DXJS, JPNL, JPNS, FJP
Thursday, Sep 1911:30 AMMSCI launches Beyond BRIC Index
Thursday, Sep 1911:30 AM| Comment!
- With institutional portfolios already plenty exposed to the played-out BRIC theme, MSCI launches the EM Beyond BRIC Index, made up of 17 countries, but excluding the BRIC nations.
- Larger EM countries like Taiwan, South Africa, and Korea are capped at just 15% of holdings in order to encourage diversification. This new index would have returned 12% annualized since 1999, outperforming the MSCI Emerging Markets Index (EEM) by 90 basis points per year.
- State Street has already filed for the MSCI Beyond BRIC ETF (EMBB) to track the index.
- Another Beyond BRIC ETF is recently-launched (BBRC).
- BRIC ETFs: FNI, EEB, BKF, BIK, BBRC, EMDD, BICK.
- Emerging market ETFs: AGEM, EEM, ADRE, SCHE, GMM, VWO, DEM, EWEM, PXH, PIE, EWX, DGS, EMLB, EDC, EET, EMSA, EDZ, EEV, EUM, TLTE, HILO, EELV, EEMA, EMFT, DVYE, FEMS, EVAL, EGRW, EMCR, IEMG, EMDR, EEME.
Thursday, Aug 299:17 AMState Street preps "Beyond BRIC" ETF
Thursday, Aug 299:17 AM| Comment!
- State Street begins the regulatory process of bringing what could be the SPDR MSCI Beyond BRIC ETF to market.
- "Beyond BRIC" investing is growing as a theme for emerging markets as investing in the BRICs has been a road to the poorhouse over the past few years.
- The Emerging Global Beyond BRICs ETF (BBRC) launched about a year ago and has had a tough time garnering assets. It's changing its approach to begin including frontier market holdings.
- Vanguard's (VWO), iShares' (EEM) and WisdomTree's (DEM) are the biggest players in emerging market ETFs, but BRICs weigh heavily - 42% of holdings in EEM (China along accounts for 19%).
- Other BRIC ETFs: FNI, EEB, BKF, BIK, BBRC, EMDD, BICK.
Wednesday, Aug 2810:52 AMTwo BRIC ETFs changing their approach
Wednesday, Aug 2810:52 AM| 1 Comment
- Guggenheim's BRIC ETF (EEB) - never a true BRIC fund because of a small allocation to Russia - will address that issue by changing its underlying index to the BNY Mellon BRIC Select DR Index from the BNY Mellon BRIC Select ADR index. As the new index name suggests, it will track global depositary receipts instead of just ADRs. The change will also allow the fund to own Hong Kong-listed China H-Shares for the first time.
- The Emerging Global Beyond BRICs ETF (BBRC) will change to a FTSE index which will allow frontier-market holdings for the first time. The year-old fund has had a tough time competing against established emerging market funds EEM and VWO, but the change should allow for a much different approach than those two giants.
- Other BRIC ETFs: FNI, BKF, BIK, EMDD, BICK.
- Frontier Market ETFs: FRN, PMNA, FM.
Monday, Aug 263:58 AMFed officials not persuaded to consider taper fallout on EMs
Monday, Aug 263:58 AM| 2 Comments
- Fed policy makers have rejected calls to take the recent turmoil in emerging markets into account when deciding on when and how reduce the bank's QE program. The fallout from the prospective tapering was a hot topic of discussion at the Fed's Jackson Hole annual get together over the weekend.
- "We only have a mandate to concern ourselves with the interest of the United States," Dennis Lockhart said.
- "They were complaining about us easing too much," James Bullard said. "Now when we start to talk about taper they're complaining about too tight of a policy. They have an independent monetary policy and they have to use that to manage" their own economies.
- ETFs: CEW, AYT, JEM, PGD, AGEM, EEM, ADRE, SCHE, GMM, VWO, DEM, EWEM, PXH, PIE, EWX, DGS, EMLB, EDC, EET, EMSA, EDZ, EEV, EUM, TLTE, HILO, EELV, EEMA, EMFT, DVYE, FEMS, EVAL, EGRW, EMCR, IEMG, EMDR, EEME, FNI, EEB, BKF, BIK, BBRC, EMDD, BICK
Tuesday, Jul 32012, 10:04 AMThe BRICs comprise 20% of the world economy, but just 16% of global stock market cap, says Jim O'Neill. The last time the gap was this big - 2005 - the BRICs doubled the gain of developed markets over the following year. "Unless we are seeing a major collapse of those economies, it's a huge opportunity," he says. |Tuesday, Jul 32012, 10:04 AM| Comment!
Saturday, Jun 232012, 8:05 AMAfter some relative outperformance, are the BRICs lately cheap enough to be a buy? Growth is slowing, but these days Brazil, Russia, India and China are at a bit of a discount, and many argue the long-term picture's still sound. The trick is figuring out the best way in - which might be broader, nimble funds that can buy where the bargains are. |Saturday, Jun 232012, 8:05 AM| 3 Comments
Friday, Jun 152012, 8:07 AMMore on the BRICs: A consensus forms. After pulling out funds for 8 of the last 10 weeks, asset managers have their lowest exposure to emerging markets since October, according to a BAML survey. The MSCI BRIC Index is off 25% Y/Y and the rupee, ruble, and real are the 3 worst-performing currencies in Q2, according to Bloomberg. (Emerging markets are gaining appeal) |Friday, Jun 152012, 8:07 AM| 1 Comment
Thursday, Jun 142012, 7:44 AMEmerging markets are starting to regain some of their investment appeal. Shares are beginning to look cheap after falling nearly 20% from the year's highs and investors are encouraged that central banks in China, Brazil and elsewhere are taking steps to boost growth. The MSCI Emerging Markets Index could gain over 30% by year-end, says Morgan Stanley. |Thursday, Jun 142012, 7:44 AM| 3 Comments
Tuesday, Mar 62012, 11:16 AMAlmost $9 out of every $10 put into equity ETFs worldwide in 2012 has gone into emerging market funds, according to BlackRock. It's the best performance ever for the sector in the initial 2 months of a year as investors chase strong performance in places like Egypt (EGPT), Brazil (EWZ), and China (FXI). Two broader EM funds: VWO +12.2%, EEM +12% YTD. |Tuesday, Mar 62012, 11:16 AM| 1 Comment
Thursday, Feb 92012, 6:42 AMThe rally in emerging-market stocks will probably continue as “ample liquidity” and appealing valuations persist, says Citigroup, noting "we would be buyers of any pullback." The MSCI Emerging Markets Index will probably climb to 1,225 this year, ~15% higher than yesterday's close. |Thursday, Feb 92012, 6:42 AM| Comment!
Tuesday, Jan 172012, 12:29 PMUBS's Jonathan Anderson notes - for the most part - a solid correlation between GDP growth in emerging markets and equity returns. Two outliers on the positive side - The Phillippines (EPHD) and Thailand (THD) - could continue to outperform, while 2 on the downside - Brazil (EWZ) and India (EPI) - both may have their growth slowdowns behind them. |Tuesday, Jan 172012, 12:29 PM| 1 Comment
Thursday, Dec 292011, 12:22 PMAfter getting smoked in 2011, emerging markets are set to rally next year on the back of cheap valuations, strong domestic demand (overcoming slowing growth in developed markets), and easier monetary policy, says Jonathan Garner, (curiously) the Chief Emerging Market Strategist for Morgan Stanley. Emerging Markets ETF: EEM -21% YTD. |Thursday, Dec 292011, 12:22 PM| 1 Comment
Thursday, Dec 12011, 8:31 AMBrazil's November PMI jumps to 48.7 from 46.5 previously. The country was among the first of the emerging markets to initiate a monetary easing cycle, and cut rates for the 3rd time in 3 months yesterday. Markit provides a longer term chart of BRIC PMIs, all near flatline territory at the moment. (PR) |Thursday, Dec 12011, 8:31 AM| 2 Comments
Wednesday, Nov 302011, 4:06 AM
Monday, Aug 12011, 3:00 PM"Stuck in history," is how Jim O'Neill describes typical equity benchmarks that continue to place most of their weight on the growth-challenged G7. "The neutral position for the BRIC countries ... needs to be raised significantly," says the man who coined the acronym. His favorite BRIC: Russia, which replaces Brazil. |Monday, Aug 12011, 3:00 PM| 3 Comments