Many exchange traded funds that track individual countries have been beaten to a pulp in 2011. Some bargain hunters see cheap valuations in these hard-hit ETFs despite global debt and economic tensions.
Last week, we took a look at some of the most oversold ETFs measured by distance from the 50-day moving averages. [The Contrarian: Oversold ETFs]
According to My Simple Quant, over 90% of single-country ETFs are trading below their 200-day moving averages, indicating bear market territory.
“Only three of these ETFs are even up on the year,” according to the blog. “The market is now (and has been for a few weeks) guilty until proven innocent.”
With most of these funds trading deep in the red, a contrarian investor may see a potential buying opportunity.
It is important to have an investment strategy in place to know when to exit or enter a market. Our investment approach includes using moving averages to reduce portfolio risk and to spot opportunities. [ETF Trend-Following Plan.]
For more information on country ETFs, visit our global ETFs category.
| Ticker | Date/Time | ETF | Close | % Above/Below 200 SMA |
YTD Change (%) |
| TUR | 8/22/2011 | Turkey Investable Market Index | 44.58 | -40.7 | -32.67 |
| EWI | 8/22/2011 | Italy Index | 12.89 | -34.47 | -21.31 |
| VNM | 8/22/2011 | Market Vectors Viam | 18.18 | -29.43 | -30.56 |
| EIS | 8/22/2011 | Israel Capped Investable Market | 43.76 | -28.65 | -27.69 |
| EWG | 8/22/2011 | Germany Index | 19.62 | -28.62 | -18.05 |
| EWO | 8/22/2011 | Austria Investable Market Index | 17.07 | -28.41 | -23.56 |
| EWD | 8/22/2011 | Sweden Index | 24.49 | -27.35 | -21.58 |
| RSX | 8/22/2011 | Market Vectors Russia Trust Sbi | 30.47 | -25.57 | -19.63 |
| EPOL | 8/22/2011 | Poland Investable Market Index | 27.9 | -24.7 | -16.94 |
| EWN | 8/22/2011 | Netherlands Investable Market I | 17.33 | -23.46 | -17.83 |
| EWQ | 8/22/2011 | France Index | 20.96 | -22.97 | -14.27 |
| EWY | 8/22/2011 | South Korea Index | 50.31 | -22.23 | -17.78 |
| EWZ | 8/22/2011 | Brazil (Free) Index | 60.15 | -22.21 | -22.29 |
| FXI | 8/22/2011 | FTSE China 25 Index | 35.67 | -20.68 | -17.22 |
| EPI | 8/22/2011 | Wisdomtree India Earnings | 19.94 | -20.15 | -24.44 |
| EWP | 8/22/2011 | Spain Index | 33.75 | -18.95 | -8.14 |
| AFK | 8/22/2011 | Market Vectors Africa | 28.18 | -16.84 | -19.9 |
| EWT | 8/22/2011 | Taiwan Index | 12.93 | -16.01 | -17.22 |
| ECH | 8/22/2011 | Chile Investable Market Index | 63.46 | -15.61 | -20.28 |
| EWK | 8/22/2011 | Belgium Ivestable Market Index | 11.91 | -15.09 | -9.29 |
| EIRL | 8/22/2011 | Ireland Capped Investable Market | 18.44 | -15.04 | -9.21 |
| SPY | 8/22/2011 | SPDR S&P 500 | 112.73 | -14.12 | -10.35 |
| EWH | 8/22/2011 | Hong Kong Index | 16.52 | -13.99 | -12.68 |
| EWA | 8/22/2011 | Australia Index | 22.36 | -13.8 | -12.11 |
| EWU | 8/22/2011 | United Kingdom Index | 15.61 | -13.19 | -10.13 |
| EWC | 8/22/2011 | Canada Index | 27.9 | -13.02 | -10 |
| MES | 8/22/2011 | Market Vectors Gulf Shares | 19.98 | -12.35 | -15.55 |
| EWJ | 8/22/2011 | Japan Index | 9.45 | -11.42 | -13.38 |
| EWS | 8/22/2011 | Singapore (Free) Index | 12.31 | -11.01 | -11.12 |
| EWW | 8/22/2011 | Mexico Investable Market Index | 54.96 | -10.56 | -11.24 |
| EZA | 8/22/2011 | South Africa Index | 63.55 | -10.04 | -14.9 |
| EWL | 8/22/2011 | Switzerland Index | 23.26 | -9.56 | -7.26 |
| EWM | 8/22/2011 | Malaysia (Free) Index | 14.29 | -1.85 | -0.63 |
| EPHE | 8/22/2011 | Philippines Investable Market | 24.25 | 0.75 | -2.73 |
| THD | 8/22/2011 | Thailand Investable Market Index | 65.93 | 0.97 | 2.04 |
| ENZL | 8/22/2011 | New Zealand Investable Market | 31.15 | 2.12 | 6.02 |
| EIDO | 8/22/2011 | Indonesia Investable Market Index | 31.24 | 4.13 | 7.35 |
Source: My Simple Quant
Max Chen contributed to this article.
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.