3 ETFs That Avoided the Market Lows

March 12th at 12:00pm by Tom Lydon

ETF Emerging marketsMarch lows. At least that is what we focused on in the United States, but one area of exchange traded funds (ETFs) in particular managed to buck the trend.

While the Dow Jones Industrial Average and S&P 500 both hit new lows on March 9, a few emerging markets, namely China, Taiwan and Brazil, have been steadfast through the troubles in Wall Street, writes Gary Gordon for ETF Expert.

The fortunes of some international funds may turn around as some factors are in their favor. European and U.S. markets were preoccupied by the lows set on Wall Street, but emerging markets were relatively successful and smaller countries that traded with them also benefited. More people are investing in emerging regions. Maybe these regions will be the first out of the recession, or investors may think that the prospects for growth are better in these markets.

China is still an economic superpower and it has a large money reserve to bolster its economy. When China is able to stir up demand again, suppliers like Taiwan, Brazil and other emerging markets will be the ones benefiting.

  • iShares MSCI Brazil Index Fund (EWZ): down 10.8% in the last month; up 7.6% since the market low; note that it’s approaching the 50-day moving average

ETF EWZ

  • iShares MSCI Taiwan Index (EWT): up 2.5% in the last month; up 6% since the market low; note that it has passed its 50-day moving average

ETF EWT

  • iShares FTSE Xinhua China 25 Index (FXI): down 11.2% in the last monthl up 6% since the market low; watch the trend line – it’s not above either its long- or short-term moving average

ETF FXI

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.