Turkish lira woes spill over to other emerging-market ETFs

|By:, SA News Editor

The plummeting Turkish lira is taking a toll on many emerging markets, underscoring the higher risk of investing in markets where the value of their currency can be vulnerable.

The Turkish lira falls 6.8% against the U.S. dollar, now trading for 6.9 lira to the dollar. Year-to date, it's down 45% against the U.S. dollar. The stronger the dollar, the more difficult it can be for countries with dollar-denominated debt to pay the interest on their debt.

The iShares MSCI Turkey ETF (TUR -10.3%) Emerging Markets ETFs has fallen as much as 11% Monday and as much as 32% since July 31.

Other emerging market ETFs on the downswing Monday are VanEck Vectors Indonesia ETF (IDX -3.7%), Global X MSCI Argentina ETF (ARGT -2.5%), Invesco India ETF (PIN -1.6%), and iShares MSCI South Africa ETF (EZA -2%).

ETFs: EEM, VWO, EMB, IEMG, EDC, PCY, EDF, SCHE, EDZ, EDI, TEI, EMLC, EDD, VWOB, EMD, ELD, EMF, MSD, MSF, ADRE, EEV, EUM, EET, SPEM, LEMB, EBND, EMAG, XSOE, DBEM, FEM, HEEM, EMSH, EWEM, ROAM, ESGE, EDBI, EMLB, FLQE, KEMP,

Previously: Stocks shake off Turkey worries to start in the green (Aug. 13)

See Emerging Markets ETF table

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