Best & Worst Emerging Market Stock ETFs This Week: Turkey Up; Nigeria, Greece & Russian Bears Lose

January 11, 2015

Barron's

It all could change on a dime if a downgrade of Russian debt comes to fruition sometime soon, but emerging market equities inched higher this week.

The Vanguard FTSE Emerging Market ETF(VWO) is up 1.6% for the week. Breaking things down by country for the week, Turkey has been the best performer, followed by South Africa and Russia. But there’s still a lot of fear and volatility lurking. In a research report earlier this week, Citi Research credit Analyst W.R. Eric Ollom observed:

“The market seems to expect Russia to lose its investment grade rating. We see this risk as already priced in, yet see no catalyst to entice investors back into the [emerging market corporate bond] sector short of a lifting of sanctions and higher oil prices.”

Here’s how the best and worst emerging market equity funds have performed:

The iShares MSCI Turkey ETF (TUR) is up more than 5% for the week and moving higher today.
The iShares MSCI South Africa ETF (EZA) is up 3.3% for the week despite a nearly 1-point decline today.
The Market Vectors Russia ETF (RSX) is up 3.3% this week, despite a decline of 3.4% today. The Direxion Daily Russia Bull 3X ETF (RUSL) is up roughly 8% for the week, while the Direxion Daily Bear 3X (RUSS) is down more than 14% for the week.

On the downside, the Nigerian and Greek markets were notable losers, as was a fund that popped in December when the U.S. announced plans to normalize relations with Cuba.

The Global X MSCI Nigeria ETF (NGE) is down 9% for the week, including another one-point drop today.
The Global X FTSE Greece 20 ETF (GREK) is down 8.5%, including today’s positive move of 1.7%.
The Herzfeld Caribbean Basin Fund (CUBA) is down 8% for the week, including a decline today. 

Tags: debt, economy, global markets, global risk
Posted in Global, Macro Economics, Funds