If this is a Fed-tightening-induced selloff, it's got to be the first one in which emerging markets are rallying. The broad iShares MSCI Emerging Markets ETF (EEM +0.5%) has now caught up to the S&P 500 YTD. Leading the charge is continued huge move in Brazil, where the Bovespa is up another 2% today, helping the iShares S&P Latin America 40 ETF (ILF +2.1%) sharply higher.
The iShares MSCI Brazil ETF (EWZ +3%) - ahead nearly 25% since the start of February - is now up 6.3% YTD. Behind the rally is the idea that the year-long string of rate hikes has maybe one more boost left in it.
EM ETFs: EEM, VWO, DEM, EDC, DGS, EDZ, EEMV, SCHE, EEB, EDIV, IEMG, DVYE, EEV, BIK, EWX, BKF, PIE, ADRE, HILO, EUM, FNI, EET, GMM, PXH, EEMS, BBRC, EELV, DGRE, FEMS, EEME, EMDD, BICK, DBEM, EMCR, EDOG, EMBB, FEM, EWEM, EVAL, FNDE, EMLB, TLTE, EEHB, EGRW, EMDG, EMHD, EMSA, QDEM, EMFT, QEM, EMDR