EWM: Financial And Ringgit Exposure Not The Best With Trump

Nov. 23, 2024 1:45 AM ETiShares MSCI Malaysia ETF (EWM)
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Valkyrie Trading Society
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(4min)

Summary

  • The iShares MSCI Malaysia ETF is risky due to concerns about the Ringgit, Trump tariffs, and a weaker Chinese economy.
  • Financials and utilities dominate EWM, with Ringgit value and NIMs under pressure from tariffs and inflation complacency, which would affect USD denominated investors.
  • High expense ratios (0.5%) also have to be contended with, assuring some return shaved off earnings yields of around 6.6%, which aren't that high compared to 3% benchmark rates there.
  • Trump is pretty determined, it seems to look hard at trading partners with large surpluses with the US. That would include a country like Malaysia.
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Elevated view of KLCC skyline at daytime

Matteo Colombo/DigitalVision via Getty Images

The iShares MSCI Malaysia ETF (NYSEARCA:EWM) is an ETF we've covered before with concerns around the Ringgit, the Malaysian currency, being critical due to the ETF's exposure to financials. The situation is quite similar now, where

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