September 25, 2007 at 9:37 am by Tom Lydon
Emerging-market exchange traded funds (ETFs) in Asia and Europe remain high after global markets advanced following last week’s rate cut from the Federal Reserve. However, the chief U.S. equity strategist at Citigroup says investors seem to be concerned that by lowering interest rates, the Fed had opened the door to inflation, especially with a weak dollar and high energy prices, reports Dave Shellock for the Financial Times. One emerging-market ETF that is at a new all-time high is the iShares MSCI Pacific ex-Japan (EPP). EPP invests 65.9% in Australia, 20.8% in Hong Kong, 11.6% in Singapore and 1.6% in New Zealand. It’s currently up 28.2% year-to-date. Another emerging-market ETF that seems to be benefiting is the iShares MSCI Emerging Markets (EEM), which is up 28.6% year-to-date.
For full disclosure, some of Tom Lydon’s clients own EEM.
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