ETF Chart of the Day: Emerging Markets
June 27th, 2012 at 3:27pm by Paul Weisbruch, Street One Financial
Lately we have seen asset inflows in broad based Emerging Markets ETFs, including iShares MSCI Emerging Markets (NYSEArca: EEM) and Vanguard Emerging Markets (NYSEArca: VWO), and this brings us to examine the broader EM space and some year to date performance figures.
When most think of “Emerging” Markets, what come to mind is typically the BRICs (Brazil, Russia, India, and China) as they tend to be the drivers in terms of performance over time in the space, and the countries have historically correlated well to each other in terms of returns as well.
In terms of “best” performers to date in 2012 in the EM space, Market Vectors India Small Cap (NYSEArca: SCIF) has registered an impressive 11.10% gain versus the MSCI EM Index down 0.76% during the same time frame. SCIF, as its name suggests, is focused on Small Cap Indian equities, and currently has its largest sector exposures in Consumer Discretionary (21.92%), Industrials (18.23%), and Financials (12.29%).
A related ETF, EG Shares INDXX India Small Cap (NYSEArca: SCIN) has gained 8.2% YTD and is the second best performer in the EM space.
Head to head since inception in 2010, SCIN has been the better performer however, down 43.70% versus SCIF losing 50.10%. Neither fund trades heavy volume on a daily basis, but utilizing the execution expertise of a seasoned ETF desk
will prevent negative price impact on sizable share volume or notional dollar amount trades and deliver fair execution.
EG Shares INDXX India Small Cap