As Global Stocks Rally, Don't Forget These ETFs

Sep. 09, 2013 12:01 PM ETAADR, ECON
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By The ETF Professor

Some exchange traded funds focused on international markets have been sturdy performers as of late.

To the surprise of some investors, among this week's global ETF leaders are plenty of emerging markets ETFs, including downtrodden Brazil and India fare.

The resurgence for international ETFs comes as investors were not shy about pulling money from exchange traded products last month. August was the worst month for ETF outflows since early 2010. However, the outflows data reveal an important point: That the bulk of the outflows, $13.8 billion to be precise, were attributable to the SPDR S&P 500 (SPY).

Said differently, investors pulled money from U.S. stocks. Some Europe ETFs actually saw inflows and while many emerging markets ETFs are struggling on the flows front, performance for some is starting to pick up. Those points could be signs the following are worth considering over the coming weeks.

EGShares Emerging Markets Consumer ETF (ECON)

While investors have been pulling cash from all types of emerging markets ETFs this year, EGShares says it has raked in more than $400 million in new investments this year. ECON, the firm's largest ETF, is a big reason why.

Year-to-date, outflows from emerging markets funds are flirting with the $12 billion market, but inflows to ECON are flirting with $370 million. That could be a sign investors are still willing to bet on the growth of the emerging markets consumer.

Brazil and India ETFs have been pleasant surprises this week and investors that want to participate in that upside without the commitment of a single-country fund should consider ECON because the fund devotes over 27 percent of its combined weight to those two countries.

AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF (AADR)

The AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF is an actively managed

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