Good Morning! A Vietnam ETF Is In Registration

There seems to be great interest in a Vietnam exchange traded fund (ETF), if the search engines are any indication. Week after week, "Vietnam" turns up as one of our top ten search words.

Market Vectors has gotten in line to meet the demand, it seems. Last week, the ETF provider filed for five new ETFs with the Securities and Exchange Commission (SEC), and one of them includes a Vietnam fund, reports the Euromoney Institutional Investor Online Network. The fund will seek to replicate the Vietnam index, which is made up of companies with market capitalizations greater than $200 million. Most of the companies in the fund are headquartered in Vietnam, or generate a majority of their revenue there.

Vietnam has been experiencing steady growth in recent times, although there has been a surge in inflation. But for the last three years, the economy has grown by more than 8%, reports Duncan Currie for the Daily Standard. Economic reforms were put in place in 1986, and since then, millions of the country's inhabitants have emerged from poverty. The country also has a wealth of natural resources, including coal and offshore oil and gas deposits - that's pure gold in these days of high energy prices.

The other ETF filings include:

• Market Vectors Global Frontier: Tracks the Global Frontier Index, which holds companies with market caps greater than $100 million.
• Market Vectors Gulf States: Tracks the Gulf Corporation Council (GCC) Index, which comprises companies with market caps greater than $100 million.
• Market Vectors Africa: Tracks the Africa Index which holds companies with market caps of more than $200 million. The companies are either headquartered there or make most of their revenue on the continent.
• Market Vectors Emerging Europe: Tracks the Emerging Europe & Commonwealth of Independent States (EE & CIS). The companies have a market cap of greater than $1090 million, and among the countries that will be seen in the funds are Kazakhstan, Belarus, Poland, Slovakia, Lithuania and Hungary.

Power Shift Seems to Agree With Russia ETF

On May 7, Vladimir Putin stepped down and Russia's new president became Dmitry Medvedev - is it any coincidence that in one day, the Russia exchange traded fund (ETF) rose 4.4%?

Market Vectors Russia (RSX) seems to be a beneficiary of the surge in energy prices in particular, as 43.1% of the fund is allocated in the sector. It's up 6.4% year-to-date.

Foreign investors, attracted by the record-high oil prices, are turning a blind eye to the country's expulsion of U.S. diplomats and threats of a war with Georgia, reports Peter Apps for Reuters. The expulsions were ordered on April 28 after the United States expelled three diplomats earlier in April. The back-and-forth is bringing back Cold War memories.

Some investors might be deterred by Russia's issues, especially when compared with other emerging markets such as Brazil, which has the growth without the political risks. And those investors who are concerned with the oil and energy sector in Russia are focusing on other sectors such as construction and retail.

An ETF is a good way to get exposure to several sectors - the diversification means you could potentially benefit from any growth, while avoiding too much risk if it doesn't pan out.

Exposure to Russia can also be had through the SPDR S&P Emerging Europe (GUR), which also contains exposure to Poland, Turkey, the Czech Republic and Hungary. Year-to-date, it's down 5.2%.

A closed-end fund (CEF) contains Russia exposure, too: the Central Europe and Russia Fund (CEE), which is down 5.1% year-to-date. It holds 27.7% of the country.

For full disclosure, some of Tom Lydon's clients own shares of RSX.

Turkey and Its ETF May Need More Time In The Oven

Are you brave enough to grow your nest eggs with a Turkey exchange traded fund (ETF)? If you want to invest some of your time and money into the Turkish stock market, it is best to do so with an appetite for risk, as this country may need more time in the oven.

Vito  J. Racanelli for Barron's suggests that after a 25% drop from October highs, the Turkish stock market is the cheapest it's been in a while. After outstanding performances since 2002, this emerging market has been one of the worst performers this year.

Investors have been deterred by two things in particular: a worsening economic picture and rising interest rates. Gross domestic product (GDP) was once high at 7%, but is predicted this year to slow to between 4% and 5%.

The current government is market friendly and fiscally disciplined, but the survival of the president's party is in question. The Constitutional Court could sweep it off its legs and leave the economy and the country's political stability in doubt.

There are two ways to get exposure in Turkey:

• Turkish Investment Fund (TKF): A closed-end fund, which is down 14.8% year-to-date.

• iShares MSCI Turkey Investable Market Index (TUR): A fund that launched on April 1, it's up 9.3% since then.

BRIC ETFs Were Anything But In April

BRIC exchange traded funds (ETFs) showed themselves to be solid in April. Investor interest and enthusiasm for the funds has peaked over the past several years, with outstanding sector-leading performances in 2007.

Richard Widows for The Street researched the BRIC ETFs for the month of April, some of which posted impressive performance numbers.

SPDR S&P China (GXC) was up 17.97% in April, and was the top performer for the month. iShares FTSE/Xinhua China 25 Index (FXI) advanced 17.5% with a net $6 billion in assets.

Brazil fared well with a pair of ETFs: iShares MSCI Brazil Index (EWZ)  up 17.3% and HOLDRs TeleBras (TBH) up 14.2% in April.

First Trust ISE Chindia (FNI) was up 16.6%, as a blend of China and India, and Claymore/BNY BRIC (EEB) was up 11.1%. An honorable mention was given to iPath MSCI India Index (INP), as the ETN gives a hard-to-access passage to India. The fund rose 7.1% in April.

There's still more BRIC exposure to be had, though, both in single-country and broad-based form.

• Market Vectors Russia (RSX), up 3% in April
• SPDR S&P BRIC 40 (BIK), up 9.7% in April
• iShares MSCI BRIC Index (BKF), up 9.8% in April

For full disclosure, Tom Lydon's clients own shares of INP.

Control of Russia Changes Hands, But Will the Growth In Russian Related ETFs Be Sustained?

The Russian economy is shifting leadership while the economy is booming under Vladimir Putin's hand, with the focused exchange traded fund (ETF) on a run. But can it sustain momentum under the next President?

Gleb Bryanski for Reuters says Russian officials are ecstatic over the economic achievements of Putin's office over the past 8 years, with high economic growth and investment rates.

But one of his last acts before stepping down, Putin signed a law placing limits on foreign investment within key sectors of the Russian economy. The law terms state that any private foreign company wanting to buy more than 50% of a company in any of the 42 strategic sectors will need authorization from a commission made up of economic and security officials, reports Thompson Financial News.

The challenge for Dmitry Medvedev is going to be sustaining the economic growth, which could turn out to be a headache. Growth rates are showing signs of faltering and inflation is ticking up. Medvedev's commitment to reform is still a question mark among many Russians, and he hasn't disclosed much in the way of economic policy.

Market Vectors Russia (RSX) would be in a position to benefit if Medvedev manages to keep Russia on a growth course. Year-to-date, the fund is down 0.7%. The Central Europe and Russia Fund (CEE), a closed-end fund, could also benefit. Year-to-date, it's down 12.2%, and it's 27.7% allocated in Russia.

BRIC ETFs Have Many Access Points for Investors

A reader wrote in recently wanting to know more about BRIC and the related exchange traded funds (ETFs). We're here to help!

BRIC stands for four of the fastest-growing emerging markets out here: Brazil, Russia, India and China. In 2007, these countries delivered some of the biggest returns of any ETFs or exchange traded notes (ETNs) around. So far for 2008, BRIC ETFs and some of the single country funds have been fairly quiet.

But make no mistake: these countries are still growing, and could have plenty to offer down the line.

Oil Prices May Get Worse; Steel and Natural Gas ETFs Are Keeping Pace

The price of oil has slipped some over the last few days, but it's projected to soar even higher - what will it mean for its exchange traded funds (ETFs)?

The reports on fuel got more dismal this morning, as many wonder just how much worse it's going to get. According to an energy report from the Canadian Imperial Bank of Commerce today, oil could hit $225 a barrel by 2012.

Cars are blamed for the continually rising prices: 90% of the demand growth in the last few years has gone to transportation. Car sales globally soared last year, growing 60% in Russia, 30% in Brazil, 20% in China. Sales were flat in Europe and dropped in the United States.

Meanwhile, the oil ETF isn't the only one performing. Steel and natural gas are nothing to turn up one's nose at, either. Gary Gordon for ETF Expert reports that funds for both of the commodities have at least kept pace with United States Oil (USO), if not leaving it in the dust.

In the last month, USO is up 18.6%. Year-to-date, it's up 25.6%. Not too shabby.

United States Natural Gas (UNG) is blowing right past oil, though: it's up 20% in the last month, and 45.2% year-to-date. Market Vectors Steel (SLX) is keeping up: it's up 17.9% in the last month and 17.6% year-to-date.

The question on everyone's minds is whether the U.S. slowdown will eventually catch up to the global markets and put the brakes on demand for these commodities. Gordon says it's possible for some commodities, but he doesn't see steel demand slowing. In China, the number of steel factories has doubled in the last five years.

Global demand for natural gas is also high, but the supplies are plentiful. That begs the question: why has the price been rising? It all traces back to the price of crude oil; it's so expensive that natural gas is one of the alternatives under consideration. It's the cleanest burning carbon-based fuel (unlike coal), and cars powered by natural gas are getting attention from major car makers such as Honda.

Do you find it daunting to focus on a single commodity? Another option is picking a fund diversified over several commodities, such as the Dow Jones Total Commodity Index ETN (DJP) or the iShares S&P GSCI Commodity-Indexed Trust (GSG), which is allocated about 67% in energy, 16% in agriculture, 7% in industrial metals, 7% in livestock, and 3% in precious metals.

iShares Seeks to Continue Its World Travel With New ETFs In Registration

Two weeks ago, iShares launched more single-country exchange traded funds (ETFs), but they're not done traveling around the world just yet.

According to Matt Hougan for Index Universe, the provider filed with the Securities and Exchange Commission (SEC) for yet more funds, including:

• iShares MSCI Emerging Markets Eastern Europe
• iShares MSCI All Country Asia ex-Japan
• iShares FTSE China (HK Listed)

The Eastern Europe fund will join the similar SPDR Emerging Europe (GUR) as funds for the region. iShares already has one China fund, the FTSE/Xinhua China 25 (FXI). The new fund will be broader, with about 80 components.

Meanwhile, Claymore has filed with the SEC to create an ETF tracking frontier markets. There is no frontier market ETF available on U.S. exchanges at the moment, but Europe recently launched some, so the heat is on. The Claymore/BNY Frontier Select DR Index Fund would track an index with 26 companies from a universe of 40 frontier markets.

Such a fund would allow investors to access the farthest corners of the world, such as Vietnam and Cambodia.

Russia Debates the Merits of Tax Cuts; What Will It Mean for ETF?

The Russian government can't seem to agree about the economy there, which means it's anyone's guess which way the exchange traded fund (ETF) will go.

Some policymakers say the economy is overheating, citing the 8.1% growth rate, report Darya Korunskaya and Yelena Fabrichnaya for the Guardian. The economy minister said Russia needed still more growth, saying the price of a slowdown was too high.

The debate mostly centers around whether a tax cut is needed to boost growth. Opponents see it as a move that would cost the state budget the equivalent of one year's defense spending. Both President Vladimir Putin and president-elect Dmitry Medvedev are in favor of the cuts.

Those in favor of the cuts say Russia needs growth of 7%-8% over the next few years if it wants to realize Putin's goal of doubling the country's gross domestic product.

Wherever Russia lands on the tax cut issue, the move could affect Market Vectors Russia (RSX). The fund is down 5.3% year-to-date, but is up less than 1% in trading today.   

Meanwhile, Putin and Bush have sat down negotiating a strategic framework for relations for both nations, even once both presidents have left office. The missile defense deal assures the Russians the European military threat is not aimed at them, reports Robert Burns for Associated Press. Apparently suspicions and old fears regarding missile defense are still a factor, so both presidents must work together to resolve this.

A key pledge is that the United States won't activate new sites in Poland and the Czech Republic unless Iran proves to be an imminent threat to Europe.

For full disclosure, some of Tom Lydon's clients own shares of RSX.

Turkey's ETF Heavy In Its Untested Financial System

The brand-new exchange traded fund (ETF) iShares MSCI Turkey Fund (TUR) has a heavy weighting in its relatively unproven financial sector.

Gary Gordon for ETF Expert mentions a recent report done by the International Monetary Fund and the World Bank about the stability of the country's financial system.

On the plus side, Turkey has a private banking sector that has seen a lot of activity with active lending to consumers and businesses. Direct foreign investment into the country has boosted the financial sector tremendously. Regulation is showing signs of sophistication.

But strikes against the system are that investors' confidence may still be fragile, banks have a large interest rate risk, Turkey's dependence on capital inflows and the fact that its new, stronger financial system is untested in a crisis.

The fund has a 53.5% weighting in financials, far and away the largest sector representation in the fund. Other sectors are materials (9.2%), telecommunication services (8.3%) and industrials (7.6%).

Turkey's prospects of joining the European Union are strong and it's one of the few Muslim-oriented countries that embraces capitalism. If this fund is too heavily skewed toward financials for your taste, there are other emerging market funds available that can help spread out the exposure a bit more.

iShares Breaks New Ground With Israel, Turkey and Thailand ETFs

Barclays Global Investors is breaking new ground with their iShares exchange traded funds (ETFs): they're the first to launch funds covering Israel, Thailand and Turkey.

In addition to these funds, iShares has also launched two global funds. One covers the world, another covers the world, minus the United States. The addition of these five funds means iShares has the largest international ETF offering, with more than 60 global, international and emerging market funds.

According to Noel Archard, head of U.S. iShares product development, non-U.S. markets account for 57% of the world's equity market capitalization and performance of these markets continues to differ from the U.S. markets.

The new ETFs are:

• iShares MSCI ACWI Index Fund (ACWI)
• iShares MSCI ACWI ex US Fund (ACWX)
• iShares MSCI Isreal Capped Investable Market Index Fund (EIS)
• iShares MSCI Turkey Investable Market Fund (TUR)
• iShares MSCI Thailand Investable Market Index Fund (THD)

The biggest asset attractor, reports Murray Coleman for Index Universe, will likely be ACWI. It has 2,884 stocks from both developed and emerging markets in every investible market in the world.

Turkey: The country is poised on the brink of seeing its newfound political and economic stability crumble, reports Yigal Schleifer for Eurasia Net. The Constitutional Court is expected to consider a motion to shut down the governing party. The country's currency, the lira, hit a seven-month low. Turkish law gives the judiciary broad powers to shut down political parties, and it has closed 24 of them since its establishment in 1963. The lawsuit is threatening the country's bid for European Union membership.

Israel: Despite the ongoing troubles in the Middle East, Israel's economy has moved at a 5% growth rate for the last four years, reports Paul David Glader for World Magazine. The currency, the shekel, has gained 31% against the dollar in the last two years, and unemployment is at its lowest level in the past decade. The country has also lowered its debt.

Thailand: Share prices closed higher today, but any optimism investors have there is overshadowed by U.S. economy fears, reports Thomson Financial. Thailand benefits from its country's general pro-investment policies and has strong export growth - 17% in 2006 and 12% in 2007. Last year, the economy grew 4.5%, according to the CIA World Factbook.

Barclays Throws Hat Into Foreign Currency ETN Ring

Barclays Global Investors is set to roll out three new exchange traded notes (ETNs) that will track currencies in Asia, the Middle East and emerging markets. The ETNs have already acquired $150 million during the month ahead of their launch.

Jesse Emspak for Investor's Business Daily says the new ETNs are:

• Asian and Gulf Revaluation: This tracks an index Middle Eastern and Asian currencies tied to the U.S. dollar. Included are the yuan, Hong Kong dollar, Saudi Arabian riyal, Singapore dollar, and United Arab Emirates dirham.
• Global Emerging Markets Strategy: Tracks 15 emerging markets countries' currencies, including Asia, Latin America and Eastern Europe, through money markets.
• Intelligent Carry Index ETN: Follows the 10 most liquid currencies in the world, designed to give market-neutral returns.

These ETNs are just in time to join two other currency ETNs that have recently launched: Market Vectors Indian Rupee (INR) and Market Vectors Chinese Renminbi (CNY). CurrencyShares by Rydex was the first to cover currency through exchange traded products.

Bear in mind, the IRS has done away with the tax breaks on foreign currency ETNs. A ruling on other types of ETNs is awaited sometime this year.

Read the disclosure, as Tom Lydon is a board member of Rydex Funds.

Coal Has a Smudged Reputation, But Can KOL ETF Rise Above It?

Coal is hardly glamorous - it's got a bad reputation as a dirty pollutant, but it can be a smoking bet in an exchange traded fund (ETF).

Gold is taking the limelight at the moment, but Steve Halpern for Blogging Stocks notes that investing expert Nick Vardy is making his bet on coal. Market Vectors Coal ETF (KOL) launched earlier this year and though it's had a lot of ups and downs, the demand for coal around the world is undeniable.

Coal supplies 25% of the world's energy and generates 40% of the world's electricity. Coal also plays a key role in steel production. South Africa, China and Eastern European countries are in developing mode and will continue to demand coal to fuel their growth.

Richard Gibbs, head of the economics unit at Australia's Macquarie Bank, expects the price of thermal coal (used for heating and power) to rise more than 50% in the next year. He expects metallurgical coal (used in steel manufacturing) to hit $150 per metric ton this year.

Emerging Market ETFs Could Be Worth a Look In Rough Times

Is it time for exchange traded fund (ETF) investors to take a trip to emerging markets - or anywhere other than the United States for now?

While some stocks are beginning to stir and the markets have been up so far today, thanks to optimism about the Federal Reserve's most recent rate cut, economists are still ready for a slowdown within the U.S. economy for the latter part of 2008.

The problems within the financial markets, in particular, are spreading into the broad stock market and are causing problems that will not go away overnight. One Moody's economist says the United States is 100% in a recession.

If that's the case, it could be time to seriously look elsewhere until this mess plays out.

Economists are favoring the long-term prospects of Brazil, China and India, reports Murray Coleman for Index Universe. China, in particular, has taken a real hit lately, but the prevailing sentiment is that it's not going to be this way forever. Mexico is showing signs that it's emerged from the U.S.' shadow. Russia's influence in Europe's emerging markets should also be watched.

If you're thinking emerging markets might be right for you, you've got many options once the funds move above their trend lines (200-day moving average):

• iShares MSCI Brazil Index (EWZ), down 4.6% year-to-date
• iShares MSCI Mexico Fund (EWW), down 3.1% year-to-date
• Market Vectors Russia (RSX), down 9.1% year-to-date

Even In These Markets, You Can Still Find ETF Movers and Shakers

Yesterday, the markets delivered outstanding performance and some exchange traded funds (ETFs) finished up in the double digits.

But one good day doesn't mean we're out of the slump yet. It's still time to take a defensive stance with your portfolio and make sure you've got that exit strategy firmly in place. But while it seems as though everything is in a downward spiral, but there are still some buying opportunities, believe it or not.

At our asset management firm, we track a list of about 100 ETFs and review it daily to see how things are performing and if there are any trends emerging. Of particular interest to us is which funds are above their 200-day moving averages. We never buy something sitting below that line.

Once we own an ETF, we keep an eye on it to make sure it's still above that line and continuing to perform. Once it dips below the trend line or falls 8% off its high, we sell. No ifs, ands or buts. A sell strategy from which emotions are entirely removed is the only kind that will benefit any investor.

It can be hard to let go of a little mover and shaker you've always had that soft spot for, but if you want to protect your money, you have to. It's like your parents always said when they were grounding you every other week: "This hurts me more than it hurts you." But sometimes it has to be done for everyone's good.

There are no guarantees that when you let a fund go, it's not going to turn around and deliver the numbers again. But that doesn't mean it won't, either. It's exactly why you have to remain as stoic as possible and stick to the plan and rationalize nothing.

There are a number of ETFs sitting well above their trend lines. Take a look at them, keep an eye on them and if they fit into your overall portfolio and are moving in an overall upward direction, they could be well worth considering:

• iShares MSCI Taiwan Index (EWT), 6.2% above
• Claymore/BNY BRIC (EEB), 5.9% above
• iShares S&P Latin America 40 Index (ILF), 10.1% above
• iShares MSCI Brazil Index (EWZ), 13.7% above
• Market Vectors Russia (RSX), 8.1% above
• iShares S&P GSSI Natural Resources (IGE), 6.8% above
• PowerShares DB Commodity Index Tracking Fund (DBC), 27.7% above
• iShares S&P GSCI Commodity-Indexed Trust (GSG), 23.9% above
• United States Oil Fund (USO), 28.3% above
• iShares Dow Jones US Oil & Gas Exploration Index (IEO), 14.4% above
• Energy Select Sector SPDR (XLE), 6.7% above
• iShares Dow Jones US Energy (IYE), 6% above
• Market Vectors Steel (SLX), 14.4% above
• iShares COMEX Gold Trust (IAU), 21.2% above
• streetTRACKS Gold Shares (GLD), 21.1% above
• Market Vectors Gold Miners (GDX), 16.5% above
• iShares Silver Trust (SLV), 30.3% above
• SPDR S&P Metals & Mining (XME), 11.5% above
• PowerShares DB Base Metals (DBB), 8.5% above
• PowerShares DB Agriculture (DBA), 30.8% above
• Market Vectors Global Agribusiness (MOO), 11.4% above
• CurrencyShares Euro Trust (FXE), 6.9% above
• CurrencyShares Swiss Franc Trust (FXF), 10.2% above
• CurrencyShares Japanese Yen Trust (FXY), 8.5% above

For full disclosure, some of Tom Lydon's clients own shares of EWT, IEO, DBB and DBA.
Read the disclosure, as Tom Lydon is a board member of Rydex Funds.

Will "Medvedev" Spell Success for Russia's ETF?

Dmitri Medvedev is set to win around two-thirds of the vote in Russia's presidential election on Sunday, and some wonder what his appointment will mean for the economy and exchange traded funds (ETFs).

The insiders are actually calling the victory for the system of "managed democracy", which is causing many to believe the voter turnout will be large, reports Fred Weir for The Christian Science Monitor.

Will Market Vectors Russia (RSX) be set on the right course? People in Russia are said to be voting for stability because they've been told that's how to keep the country on its current course, reports Daniel Varnet for Herald Tribune. But is it the right one? Time will tell.

Russia needs to start making nice with other countries if it wants to continue to benefit its own economy. Is Medvedev the man to usher in a new era of change in the country?

Russia's ETF Is On the Right Track; the Right Moves Could Keep It There

On Dec. 24, Russia's exchange traded fund (ETF) hit an all-time high. By Jan. 23, its value dropped 26% as panic over the U.S. economy spread.

Since then, things have begun to look up once again and Market Vectors Russia (RSX) has climbed 8.9%. The turnaround owes much to the climbing price and growing demand for oil and gas, as 50% of the fund is allocated in those companies, reports Joanne Von Alroth for Investor's Business Daily.

Investors are also anticipating the transfer of power from President Vladimir Putin to his expected successor, First Deputy Prime Minister Dmitry Medvedev, who is seen more liberal and open. It's been said before that Russia needs to start buddying up to other countries in order to benefit its own economy, and Medvedev might just the man for that.

A fund so heavily weighted in oil and gas, however, needs to be watched closely for volatility. But the shifting winds in Russia could blow these ETF in the right direction.

What's Behind the Activity in the Steel, Metals and Mining ETFs?

Two exchange traded funds (ETFs) posted stellar numbers this week. What's behind all the movement?

Market Vectors Steel (SLX) is up 7.2% this week and up 18.4% since Jan. 22. One possible factor in the upswing is that the world's largest steel maker, ArcelorMittal MT, said it was set to raise steel prices in the United States and Europe. ArcelorMittal MT is the fund's top holding, at 14.9%, and it produces 10% of the world's global steel output.

Steel demand is booming worldwide, reports Newstex, and nearly all steel makers are expanding their operations to accommodate the demand. Matthew Hill for Mining Weekly says that China's growth, in particular, is a strong factor in the metal's demand. In fact, Chinese steel production could double by 2012.

Other fast-growing economies throughout Latin America, Eastern Europe and Russia will place extra demand on steel, too, as they call for more cars, buildings and machines. Brazil, in particular, is a major source of demand right now.

Then there's the overall feeling in the steel industry that it will be able to weather any kind of global economic downturn, report Aoife White and Matt Moore for the Associated Press.

Another ETF with similar returns of late is the SPDR S&P Metals & Mining (XME). In the last week, it's up 5.7%, and since Jan. 22 it's up 20.1%.

On top of some holdings in steel, the fund also has several companies that deal in coal mining - a major component in the production of steel.

Put the two together, and an interesting story is revealed.

Barclays' New Currency ETNs Evolve

Barclays is expanding its line of exchange traded notes (ETNs) with three new currency-related filings. Despite the IRS ruling that these notes should be taxed as debt, and that gains from interest income and currency appreciation will be taxed as regular income tax, Barclays Capital went forward with the launch.

The new ruling will put ETNs at a slight disadvantage because noteholders will be required to pay taxes on implied interest each year. Matthew Hougan for Index Universe says the new ETNs are:

• Asain and Gulf Revaluation: Gives exposure to five Middle Eastern and Asian market currencies that are tied to the U.S. dollar and comes with a 0.89% expense ratio.
• Barclays GEMS Strategy: GEMS stands for global emerging markets strategy. The fund is a 15-currency money market account that covers five geographic zones, including Eastern Europe, Africa and Latin America. It has a 0.89% expense ratio.
  
• The Carry Trade ETN: The carry trade involves borrowing money in low-yielding currencies and investing it in high-yield currencies. This fund involves using long and short forward positions in G10 currencies to execute the trade. Among others, the index has holdings in the Norwegian krone, New Zealand dollar, Swiss Franc and Australian dollar. The fund has an expense ratio of 0.65%.

ETNs trade like stocks or exchange traded funds (ETFs), but they're debt instruments, meaning that investors are exposing themselves to risk that the issuing bank will go bankrupt.

BRIC ETFs Caught In Gap Between Perception and Reality

The consistency of economic strength is still being determined among investors of BRIC (Brazil, Russia, India, China) exchange traded funds (ETFs).

Pierre Daillie for Seeking Alpha says that at best, the general sentiment surrounding emerging markets has remained skeptical, and this is why the market has been absorbing the BRIC investment story with a grain of salt. Is their credit worthiness being overlooked?

Right now, emerging markets have a current account surplus of $700 billion, and longer term surpluses of $3 trillion are found on balance sheets of BRIC countries in the form of Foreign Exchange and trade surpluses.

BRIC countries have been financing the debt and driving the growth of the G7 countries for the last 5-7 years. This makes their relationship a symbiotic one.

Furthermore, the idea of emerging markets being highly correlated to U.S. markets has been overplayed, Daillie says. The correlation is there, but it is low, at .30-.40. Emerging markets will sustain, and some of their current growth and inflationary pressures may benefit from a U.S. slowdown.

The four of these are "total" emerging markets funds that give broad-based exposure to any portfolio:

• iShares MSCI Emerging Markets (EEM)
• PowerShares FTSE/RAFI  Emerging Markets Portfolio (PXH)
• SPDR S&P Emerging Markets (GMM)
• Vanguard Emerging Markets (VWO)

If Russia Makes Friends, ETF Could Benefit

Could Russia's diplomacy be hurting its opportunities for foreign investors and its exchange traded funds (ETFs)?

The Kremlin admitted that it is, reports Ambrose Evans-Pritchard for the Telegraph. It said that the country's hard-nose diplomacy and manipulation of the energy sector for political goals deters investors and has left the country friendless.

Finance Minister Alexei Kudrin said that tiffs with Europe and the United States have gone too far. Kudrin acknowledges that Russia is dependent on global economic ties and that the time to safeguard stable investment is now. A former Kremlin official said that Russia needs to think about what its foreign policy is actually costing its economy.

Although the country has the world's third-largest reserves at $470 billion, officials are still concerned about lurking risks. Companies have had to borrow heavily overseas to raise capital because the internal bond market can't keep pace with growth. The credit crisis is spreading to the country.

Market Vectors Russia (RSX) is down 8.2% year-to-date. If Russia begins to make nice with other economies, maybe a turnaround is in the offing.

Russia is also a small component of several BRIC (Brazil, Russia, India, China) funds, if you're seeking more diversified exposure.

• iShares MSCI BRIC Index (BKF)
• Claymore/BNY BRIC (EEB)
• SPDR S&P BRIC 40 (BIK)

WisdomTree Could Launch Money Market ETFs

WisdomTree filed for 12 new money market exchange traded funds (ETFs) to cover 17 different foreign and emerging markets. The new funds are similar to the Rydex CurrencyShares funds with two major differences:  (1) They cover many new global markets, and (2) They are money market funds.

Murray Coleman for Index Universe on Seeking Alpha reports that the total number of currency funds available will be 17, representing currencies from almost every major market in the world. Several currencies will be accessible by investors for the first time, including the Brazilian real, Chinese yuan and the South African rand.

Another addition from WisdomTree includes the WisdomTree Developing Markets Fund which proposes to make short-term investments in money market instruments from 10 emerging markets: Brazil, Chile, China, Czech Republic, Hungary, India, Poland, South Korea, Taiwan, and Turkey. This fund is also being titled actively managed, with an average maturity of around 60-90 days.

This will allow investors to put their money in an investment outside the U.S. in a liquid and safe environment.

Read the disclosure, as Tom Lydon is a board member of Rydex Investments.

Country-Specific ETFs Tell Two Stories

If they're smartly played, country-specific exchange traded funds (ETFs) can deliver rewards.

Country-specific ETFs, such as iShares Austria (EWO), give investors a great way to take advantage of growth in regions such as Eastern Europe. Two years ago, we made a small bet on EWO because we liked the exposure to Austria as well as the fast-growing emerging markets elsewhere in the area. We knew this ETF was a gamble because of its highly concentrated two-dozen stocks, making it susceptible to price swings. We watched the ETF jump 28% before selling it in 2006.

After walking through the streets of cities such as Prague with my family last Summer, I took notice of bank branches filled with customers and the numerous ads for cell phones, many of which were offerings from companies in EWO's portfolio.

Advisors are using these country-specific ETFs in a variety of ways, reports Rob Wherry for SmartMoney, from a substitute for individual stock picking to getting boosted returns away from a generic, broad-based ETF. Such strategies can hold the hopes of big returns but they are also carrying different levels of risk, so be sure to do your research.

Are U.S. Economy and ETFs as Down and Out as You'd Think?

When comparing the U.S. economy to the rest of the world lately, investments and exchange traded funds (ETFs) focusing on the foreign markets have been in favor. The U.S. housing collapse and credit meltdown have taken headlines everywhere, but the reality is behind the numbers, which take on a different story.

The Wall Street Bully reports that the output from state to state in the U.S. in contrast to the rest of the world, confirms that the states are still a world force.

One of his readers says that during the midst of our mortgage crisis, the U.S. economy still grew by 3.9% during the third quarter. This followed a 3.1% second quarter jump. In perspective, this is like "adding a Saudi Arabia to our economy" since the beginning of April.

This doesn't mean the U.S. economy is perfect, nor is it devoid of any future problems. The U.S. is the wealthiest nation by GDP and the rest of the world isn't even close. India and China are growing fast, but they have a long way to go. The U.S. economy is as large as bundling the next four largest economies in one - Japan, Germany, China and the United Kingdom.

A map, via strange maps, gets the point across in a fascinating way:

(Tisha)

Eastern Europe ETF a Dark Horse in Emerging Markets Sector

When talk turns to the "emerging markets" exchange traded funds (ETFs), it often centers around a few economies in particular: Latin America, India and China. In the fourth quarter of 2007, however, there was one region that flourished: Eastern Europe.

Gary Gordon of ETF Expert says that the SPDR S&P Emerging Europe (GUR) ended the year just a few points off its 52-week high. Compare that with the performance of the iShares S&P Latin America 40 Index (ILF) and the iShares MSCI Pacific ex-Japan (EPP), both of which didn't perform as nicely as they had in the previous three quarters.

So far this year, GUR is showing strong demand, thanks in part to a heavy weighting in energy. The fund is 50% allocated in that sector, and of that, 60% allocated in Russia (one of the BRICs, you'll recall).

Is GUR truly an emerging market fund, though? The fund, overall, is 36.3% allocated in Russia, 13.1% in Poland, 12.1% in Turkey and 6.2% in Hungary. But before you nod your head "yes," consider that 27.1% of the fund is in the United Kingdom -- decidedly not an emerging market. One can't help but wonder if the fund is getting a little bit of its boost from the UK's comparatively strong economy.

Another way to access Eastern Europe is through the iShares MSCI Austria Index (EWO). The fund is heavily weighted in the struggling financial sector, though, so keep that in mind as you consider the credit crisis that is not only affecting things on U.S. soil, but also abroad.

Austria ETF a Gateway to Eastern Europe

Austria and its exchange traded fund (ETF) have benefited from the opening up of western and eastern Europe, more so than any other European Union member. iShares MSCI Austria (EWO) is the best play on this European country that is serving as a support for eastern European countries. Austria's eastern and southern neighbors are entering the EU, putting this small country back in the center of the map, reports Carl Delfeld for ETFXRAY.

Austria's trade with central and eastern Europe has jumped over the past 15 years, helping to lower the trade deficit. Direct investment from Austria into central and eastern Europe went from 0 in the 1990's to $28 billion in 2004. This equals 8% of the country's GDP. Ten years ago investment was focused on manufacturing, and now the majority goes to financial intermediation, property and services.

EWO is down 1.3% year-to-date and financials make up 42% of this ETF. While EWO is below its 200-day moving average, it may be one worth watching if you are interested in eastern Europe.

Future ETF Possibilities Are Endless

With new exchange traded funds (ETFs) coming out almost every day, you would think all the major countries and sectors would have their own ETFs by now. Yet that doesn't seem to be the case; there's always room to grow.

Roger Nusbaum of Random Roger speculates that Iceland, Vietnam and Kazakhstan ETFs would have promising futures. As we've mentioned before, here are a few ETFs we would like to see come into fruition:

Eastern Europe - We're tired of going through the Austria ETF - iShares MSCI Austria (EWO) - as a means for investing here.
Turkey - Once Turkey joins the EU, it would make sense for an ETF to follow.
Ireland - It has the market cap, and it's economy is a strong global contender.

What ETFs do you see in your crystal ball?

Tap Into Eastern Europe Via ETFs

Eastern European stocks are forecasted to outperform those of Western Europe, and exchange traded funds (ETFs) that focus on these countries could benefit. The performance gap between developed Europe and it's Eastern counterparts could widen during the next year. Poland is seeing more robust economic activity with an expected GDP rate of 6% (up from 5.8% in 2006), while Russia's economy is growing at a rate of 7% a year.  Opportunity in this region is coming through energy, banking and mobile-phone sectors. Murray Coleman for The Wall Street Journal reports higher employment is boosting disposable income and consumer spending. There is also a construction boom with government financed infrastructure.  A revitalized housing market is showing mortgage activity and consumer lending.

While there is not a specific Eastern European ETF, there are ways to tap into this market.  Austria has become the hub for Eastern European commerce.  iShares MSCI Austria Index(EWO)  up 11% year to date. Market Vectors Russia (RSX) was just recently launched, but gives investors another opportunity to invest in the region.

ETFs Rebound in First Quarter

When you think of spring, one may conjure images of flowers growing, but what about the growth of your exchange traded funds (ETFs)?  As companies are reporting first quarter earnings, Rudy Martin of TheStreet.com reviews ETFs for the first quarter. 

Although there was a bit of a scare coming from China mid-quarter, Asian markets rebounded nicely. iShares MSCI Singapore (EWS) was up 10.5% for the quarter, with a healthy economy.  iShares MSCI Malaysia (EWM) returned 19% for the first three months of 2007, as the country works toward becoming an economic hub.  iShares MSCI Australia (EWA) saw 10.4% growth with banking, real estate, metals and mining boosting the economy.

In Europe, iShares MSCI Austria (EWO) grew 5.3% as it continues to be a hub for Eastern European commerce.  iShares MSCI Spain (EWP) rose 5% on its drive for growth, with the housing/building industry booming and Spaniards forgoing siesta to work harder and longer.

Eastern Europe ETFs, Anyone?

Currently, the best way to invest in eastern Europe through exchange traded funds (ETFs) is with iShares MSCI Austria (EWO).  Austria has become the hub for Eastern European commerce and the fund is up 32% for the year.

As more European countries adopt the Euro, there is a stronger case for additional single country ETFs. Slovak lawmakers report their 2007 spending plan is based on a projected 7.1% GDP growth and an average inflation rate of 3.1%. Prime Minister Robert Fico's cabinet is comprised of socialists and nationalists and verify they are aiming to refine the economy to get ready for the adoption of the Euro. There is a 2009 deadline, according to the press release.