5 International ETFs On the Up and Up

July 01, 2009 at 11:00 am by Tom Lydon

ETF globe The recent rally in stocks has lifted sagging world markets and related exchange traded funds (ETFs) with holders of such funds pleased and leaving onlookers envious. While there are many, here are five areas that have been particular standouts.

In Japan, the country’s exports and industrial production is on the mend. Analytical data points to an economy that is bottoming out, which has led to a Japanese small-cap rally. Small-cap companies tend to be more capable of adapting to the changing economic environment.

SPDR Russell/Nomura Small Cap Japan (JSC): up 4.6% year-to-date; up 6.8% in the last month

ETF JSC

iShares MSCI Japan Small Cap Index (SCJ): up 3.4% year-to-date; up 5.1% in the last month

ETF SCJ

Thailand is another country that is starting to climb out of its economic hole. Spurred by government spending, job creation is on the rise. If there are any hiccups in the stimulus efforts, a second package is at the ready. Meanwhile, Thailand’s Prime Minister Abhisit Vejjajiva said he believes the country’s economy will post a positive growth rate by the end of this year.

iShares MSCI Thailand Invest Mkt Index (THD): up 41.8% year-to-date; up 6.1% in the last month

ETF THD

Most experts note the recovery in world economies will start in emerging markets. These countries will be moving independently from developed countries.

Claymore/BNY Mellon Frontier Markets (FRN): up 28.4% year-to-date; up 7.7% in the last month

ETF FRN

Chile has been blessed with natural resources and the country is reaping the benefits of its commodity cache. The country’s financials are in order and Moody’s increased the country’s credit rating on an optimistic outlook. Its economy is only getting stronger with a GDP that rivals most Latin American countries, a decreasing poverty rate and increases in public spending.