July 09, 2007 at 1:00 pm by Tom Lydon
Emerging markets and the exchange traded funds (ETFs) that track them have displayed the best one-year performances so far. Lipper data gives iShares FTSE Xinhua/China 25 Index (FXI) the top spot. Despite its February dip, it has one-year gains at 77.8%. The other hot performers were:
- iShares MSCI Mexico (EWW) 66%
- iShares MSCI Malaysia (EWM) 66.7%
- PowerShares Golden Dragon Halter USX China (PGJ) 68.5%
- iShares MSCI Brazil (EWZ) 69.1%
Strong markets and big inflows pushed up the stocks’ prices, which in turn drove up some of the underlying indexes, reports Jesse Emspak for Investor’s Business Daily. Economies that centered around natural resources did well over the past year, partially because of the increased demand for commodities like copper and oil. However, buyer beware: Many of the emerging market ETFs that rolled out recently divide the markets into narrower slices. While this could increase the overall volatility, emerging markets ETFs continue to be popular and post favorable returns.
Tags | Brazil, China, Copper, Emerging Markets, EWZ, FXI, Malaysia, Mexico, PGJ
