Best emerging markets etf shares
for etf trading and etf investing
and their short ETF versions
Emerging markets etf shares represent option how to trade regions with economies that are in big expansion. Countries in Asia, Latin America , Eastern Europe and South Africa are in process of strong development and their rate of growth is much higher then in developed economies.It does not mean that these economies are already decoupled from developed countries. As big market drops in 2008 and 2011 have shown, these economies could be more vulnerable to slowing of developed economies that one could think. This is mostly due big reliance on exports. These economies are based on export growth as they are cheap producers for developed countries. Bullish investors could only hope that major emerging countries will be able to switch demand also to their middle class that is bigger and bigger. It will help also to re-balance whole world economy for more stable behavior.
Major emerging market etf
There is one single emerging markets etf covering all these markets. It is the iShares MSCI Emerging Markets Index Fund - symbol EEM. This emerging market etf could be used for tracking global performance and situation of developing countries.
Shorting of emerging markets ETF
There is also possible to use etf trading strategies or etf investing strategies expecting decline in price of these exchange traded funds. One such decline we saw recently (August and September 2011). There is possible to trade these declines by
short selling
of EEM shares mentioned above. But there is also option to use inverse Short ETF and Leveraged ETF for shorting emerging markets. There are two funds offered by Proshares with symbols EEV and EUM. So it is possible to buy these inverse exchange traded funds instead of short sale of EEM. But if you want to hold such trade for longer period of time then trading of these
leveraged and short ETF
could be more risky then typical shorting of EEM.
How to trade Asian stock markets
with emerging market etf shares ?
There are plenty of Asian stock market ETF shares available. Here is current list I personally monitor for my ETF trading strategies.- FXI .. FTSE/Xinhua China 25 Index Fund
- GXC .. STREETTRACKS China
- EWA .. ISHARES Australia
- EWH .. ISHARES Hong Kong
- EWJ .. ISHARES Japan
- EWM .. IShares MSCI Malaysia
- EWS .. ISHARES Singapore
- EWY .. ISHARES Korea
- EWT .. ISHARES Taiwan
- PIN .. Powershares India
- IDX .. Market Vectors Indonesia
- THD .. Ishares Thailand
- IDX .. Market Vectors Vietnam
- EPHE .. Ishares Philippines
Here are examples of popular emerging markets etf shares tracking Indonesia, Philippines and India.
There are more funds for
etf trading of India
then mentioned above.
Asian currencies
offer also nice opportunities for etf traders and also for etf investing.
Brazil ETF shares and Bric ETF options
Latin America could be covered by these main emerging market etf shares:- EWZ .. Ishares Brazil
- EWW .. Ishares Mexico
- GML .. Latin America SPDR fund
- EPU .. Ishares Peru
- ECH .. Ishares Chile
- BRF .. Market Vector Small cap
- BZF .. WisdomTree Brazil Real currency fund
There is possible to use exchange traded funds for etf trading of stock markets of above mentioned countries but also to invest directly into some of their
currencies
as is possible for Brazil real. Also performance of these shares is often correlated with performance of
commodity fund shares,
especially in case of Chile, Brazil has much more diversified economy.
Africa, Eastern Europe and Russia ETF
I have these individual shares in my watch list.- AFK .. Market Vectors Africa fund
- EGPT .. Market Vectors Egypt fund
- EZA .. South Africa index fund
- EPOL .. Ishares Poland
- RSX .. Russia ETF
Russia fund shares are often used for etf investment strategies combined with
OIL exchange traded funds strategies.
Russia shares tend to perform well when price of oil is high. Poland fund is quite popular as it represents biggest country in Central and Eastern Europe with good economic outlook.
ETF Investing with Emerging market bonds
There are two exchange traded funds that can be used for etf investing into bonds of these emerging countries.EMLC is fund investing to bonds issued by emerging market governments and denominated in the local currency of the issuer. ELD is designed to provide exposure to Local Debt of issuers from a broad range of emerging market regions and countries.
These
bond funds
provide opportunity to collect nice yield and also performance of local currencies against USD.
Return from emerging markets etf back to ETF Trading
Return from emerging markets etf back to simple-stock-trading.com
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