Thursday’s session was not the start to 2014 emerging markets investors were looking for as the iShares MSCI Emerging Markets ETF (NYSEArca: EEM) lost 3.8% on volume that was more than double the daily average.
Other high volume losers among emerging markets funds included the marquee Brazil, China, Turkey and Thailand ETFs. [Thailand, Turkey ETFs Tumble to Start 2014]
After losing 5.4% last year, which actually ranked as a decent performance among Latin America ETFs, the iShares MSCI Mexico Capped ETF (NYSEArca: EWW) kicked 2014 off with a loss of almost 2.8% on volume that was more than 35% above the daily average. An optimistic view says2014 is still young and EWW could still provide investors with something to cheer, particularly if U.S. and Mexican equities rise in unison this year.
EWW “has spent just nearly all of 2013 in consolidation mode, after breaking out to new all-time highs in Q4-2012. On the long-term monthly chart, notice how the recent pullback found new support at prior resistance of the former all-time high (a bullish sign),” notes Deron Wagner of Morpheus Trading Group.
Wagner went on to point out that on “shorter-term daily chart, we see several higher lows already in place, which is a great sign. Since the correction was so long, the 50-day moving average is still below the 200-day moving average, which is not ideal, but note that the 50-day MA is now trending higher.”
Some money managers have also started nibbling at LatAm ETFs with EWW being a favored destination. Some professional investors have been attracted by the allure of market friendly reforms promise to make the country’s economy more globally competitive and attractive to foreign investment. [Fiesta Awaits Mexico ETF in 2014]