Market Vectors Coal ETF (NYSEArca: KOL) is up 224.9% off the low. Oil prices topping off in the low $80 range helped boost coal plays since March 9. Coal prices had an assist in recent months as those in the colder climes crank up the heat and push demand higher, eating into what had been a surplus. And last year, China shifted from being a coal exporter to an importer, shifting the dynamics of pricing. [Why Coal is Leading the Energy Sector.]

Market Vectors Indonesia ETF (NYSEArca: IDX) is up 203% off the low. Indonesia has been one of the powerhouses of the recovery. Influential global asset manager Templeton Asset Management said that Indonesia could be ready to become a member of the BRIC. President Susilo Bambang Yudhoyono expects the country’s growth to average 6.6% over the next five years. Indonesia recently had its sovereign debt upgraded to one level below investment grade by Fitch Ratings firm. [Is Indonesia BRIC Material?]

Market Vectors Steel (NYSEArca: SLX) is up 180% off the low. A global recovery led by emerging markets, a pickup in global auto demand, tight mine supply growth and more demand for investment are seen as being the primary drivers of any gains in metals this year. Steel is a key component in all kinds of infrastructure and building projects, putting it in prime position to benefit in recoveries. [Metals and Mining Outlook.]

iShares MSCI Turkey Index (NYSEArca: TUR) is up 178% off the low. Turkey has seen a shift in the last year: its government bond rating was raised by Moody’s, Fitch and S&P. Turkish banks also managed to get through the crisis without seeking aid from the government. But trouble lurks: A coup in the country threatens to undo its hard-won growth. [Turkey's Coup Troubles ETF.]

Market Vectors Russia (NYSEArca: RSX) is up 176% off the low. While Russia is no less secretive than it was before the crisis, the economy has at least delivered the goods so far. It’s  estimated to grow around 3.5% this year. In January, industrial output in Russia jumped 7.9% year-over-year. The Federal Statistics Service reported that industrial output dropped by 10.8% last year. Car and locomotive manufacturing increased by three-fold year-over-year. But will Russia diversify far beyond oil and gas? Whether it does could determine its long-term prospects for health. [Russian Central Bank Lends a Helping Hand.]

SPDR S&P Metals & Mining (NYSEArca: XME) is up 160% since the low. XME is another ETF in a prime position to trend up as the economic recovery continues. Add in an increasing federal deficit coupled with a large decline in the U.S. dollar, and it may eventually translate into rapid inflation and higher metal prices. As an equities-based ETF, it tends to have less volatility than ETFs backed by physical metals or futures contracts. Added bonus: Mining companies can continue to do well if a commodity’s price falls back, but remains far above the cost of production. [Guide to Metals ETFs.]

SPDR KBW Insurance (NYSEArca: KIE) is up 164% off the low. Insurers were one of the most embattled sectors a year ago. The industry’s leader, AIG, is still finding ways to pay back a massive bailout by selling off certain units. A British company has signed on to buy AIG’s Asia life insurance business for $35.5 billion. The deal would mean the largest repayment yet of the whopping $180 billion the government fronted AIG. The Federal Reserve of New York would grab the first $16 billion from the sale. This week, AIG sold its foreign life insurance business to MetLife for $15.5 billion. [More on Insurance.]

SPDR KBW Bank (NYSEArca: KBE) is up 152% off the low. This one is proof that the most beaten-down sectors in a crisis tend to perform among the best in recoveries. The most recent dip in major bank stocks came after President Barack Obama announced increased bank regulations. Critics see this as an attack on the fundamental business model and Congressmen are in no real rush to push the changes. The most prominent bullish argument for banks is the yield curve slope, which allows banks to make profits on the widening rate spread. [Why Big Banks May Be Big Performers.]

For full disclosure, Tom Lydon’s clients own shares of XME.

Max Chen contributed to this article.

Influential global asset manager Templeton Asset Management said that Indonesia could be ready to become a member of the BRIC (Brazil, Russia, India, China) group of major emerging countries, writes Berni Moestafa for Jakarta Globe. Templeton points to Indonesia’s fast-growing stock markets, the second-best performing stock market of last year, as a key indicator. [Why Indonesia was among the year's best.]

President Susilo Bambang Yudhoyono expects the country’s growth to average 6.6% over the next five years.

Indonesia recently had its sovereign debt upgraded to one level below investment grade  by Fitch Ratings firm, reports Made Sentana for The Wall Street Journal. Fitch’s revised rating of Indonesia to BB+ is one higher than the Ba2 rating set by Moody’s and two levels higher than Standard & Poor’s BB-.

Ai Ling Ngiam, a director in Fitch’s sovereign ratings team, stated that “the rating action reflects Indonesia’s relative resilience to the severe global financial stress test of 2008-2009.” However, Fitch says that long-term development may be at risk if fiscal expenditure inefficiencies remain unresolved as a result of delays in electricity-tariff and fuel-price adjustments. The government has promised not to increase both prices, but many believed it was more of a political ploy instead of an economic decision.

Public debt ratios fell to 30% of GDP throughout 2009 and international reserves increased 28% to $66 billion. The firm calculates that the economy expanded 4.6% last year.

For more information on Indonesia, visit our Indonesia category.

• Market Vectors Indonesia ETF (NYSEArca: IDX)

Max Chen contributed to this article.

BRIC countries  have been given a lot of press lately, but there are other interesting things taking place outside of the four economies, primarily in a group of countries categorized as the “MAVINS,” according to the ETFDesk Daily. [The BRIC economies today.]

While they’re not all emerging markets, one thing they all bring to the table is potential, thanks to strengthening economies and increasing growth potential.

Just who are these people, and why should we be paying attention?

Mexico. The country has a growing middle class and a positive population growth trajectory. Observers believe that the close proximity to the United States will allow Mexico’s government to basically become an extension of the U.S. economy and rapidly allow Mexico to close its income gap with us. Furthermore, Mexico is also a commodities play. The country is the world’s seventh largest oil producer, as well as a large exporter of silver, fruits, cotton and coffee. [The key to Mexico's success.]

• iShares MSCI Mexico Investable Mkt Idx (NYSEArca: EWW)

Sector Allocations: Telecommunications Services, 35.2%; Consumer Staples, 22.8%; Materials, 13.6%; Consumer Discretionary, 12.7%; Industrials, 9.1%.

Australia. Australia is the richest commodities source in the world and it basically backs Chinese growth. China is Australia’s largest trading partner and is also a major investor of farmland and real estate in Australia. Additionally, the country has a well-developed manufacturing and services economy. The only problems that hold the country back are its water shortages and lower population per area of land. As the U.S. dollar appreciates, however, it could put more pressure on the carry trade and the Australian ETF.

• iShares MSCI Australia (NYSEArca: EWA)

Sector Allocations: Financials, 43.6%; Materials, 26.3%; Consumer Staples, 10%; Energy, 6.8%; Industrials, 4.5%; Health Care, 3%; Consumer Discretionary, 2.2%.

Vietnam. Vietnam has a quickly liberalizing economy, near-term political stability and a centralized command of a communist government. The country has a rich farm lands and it is developing its manufacturing sector. The population in Vietnam is already larger than that of France or Germany, and population growth is on an upward trajectory. Vietnam shares a lot of economic similarities to the China of 20 years past, such as the much lower labor costs that will make it a manufacturing contender. [Vietnam on track for growth.]

• Market Vectors Vietnam (NYSEArca: VNM)

Sector allocations: Financials, 44%; Energy, 24.2%; Industrials, 15.7%; Materials, 7.4%; Consumer Discretionary, 2.5%; Utilities, 2.3%; Consumer Staples, 1.6%.

Indonesia. The newly Democratic nation is becoming a fast-growing Asian economy. The average standard of living is still low, but that only means that the potential is that much greater. For instance, if Indonesia’s economy were on par with Mexico’s, it would be three times its current size. Indonesia is also rich in oil, gas, coal, tin, copper, silver and gold. Conveniently situated next to India and China, Indonesia is becoming a marginal supplier of natural resources to its increasingly insatiable neighbors. [Indonesia among the year's best.]

• Market Vectors Indonesia ETF (NYSEArca: IDX)

Sector allocations: Financials, 25.2%; Materials, 23.1%; Energy, 14.6%; Consumer Staples, 12.5%; Consumer Discretionary, 10.9%.

Nigeria. Nigeria is the most populous country in Africa, with 155 million people, and it is expected to maintain a high birth rate through 2050. The country is growing and starting to liberalize its economy, having only just come into a Democracy. Some have argued, however, that Nigeria is heavily dependent on its rich oil reserves. Corruption is still rampant and there are some ethnic and religious conflicts. [Recovery in Africa ETFs.]

• There is no Nigeria country-specific ETF, but an investor may gain exposure to the region through Market Vectors Africa ETF (NYSEArca: AFK) – Nigeria is around 22%.

Sector allocations: Banking, 27.9%; Basic Resources, 19.7%; Telecommunications, 12.2%; Oil & Gas, 11.5%.

South Africa. South Africa is the strongest African economy, with modern institutes and commodity wealth such as gold, platinum, coal and diamonds. The economy is diversified with mining, agriculture, services, and manufacturing. Furthermore, South Africa is benefiting from its commodities advantage. Still, half the country lives below the poverty line. [South Africa, a return to normalcy?]

• iShares MSCI South Africa Index Fund (NYSEArca: EZA)

Sector allocations: Materials, 27.8%; Financials, 26%; Telecommunication Services, 12.9%; Consumer Discretionary, 11.4%; Energy, 10.5%.

Max Chen contributed to this article.

The CLSA Asia Pacific Markets have compiled a report that outlines what factors are making Indonesia  once again attractive to investors. Important points include:

• Indonesia is a marginal supplier of natural resources to China and India, two of the world’s fastest-growing economies. [Other emerging economies doing well as of late.]
• The country has a young population and about 22 million more people are projected to join the workforce in the next decade. The GDP per-capita growth in recent years has been strong.
• Indonesia is the world’s largest exporter of palm oil and will profit greatly when the demand for palm oil from China and India doubles by 2014.
• Indonesia is the largest exporter of thermal-coal exporter and China is the world’s largest importer of this type of coal.

For now, Indonesia is not interested in a free trade agreement with Asia or Southeast Asian nations, explains Carl Delfeld for ETF Xray. However, a move should be made, as the Jakarta government is aware that the textile and steel industries are under pressure and could collapse, since they’re not equipped to compete with the Chinese markets. [Is Indonesia an emerging market leader?]

Under the free trade agreement between China and the Association of Southeast Asian Nations, Indonesia is required to remove import duties on 6,682 Chinese products. [More reasons the country is thriving amidst the recovery.]

For more stories about Indonesia, visit our Indonesia category.

• Market Vectors Indonesia ETF (NYSEArca: IDX): up 165.1% since inception

How did Indonesia do it?

• Indonesia’s economy grew 4.2% in the third quarter from a year earlier as the economy was bolstered by consumer confidence, increased domestic spending and a stable political climate,  report Aloysius Unditu and Novrida Manurung for Bloomberg. (Why Indonesia may see higher growth).

• Unlike many other Asian countries, Indonesia’s economy was not fettered by the dip in global export demand.

• James Lord, economist at Capital Economics Ltd., sees that the current President’s cabinet includes a team of economists that are “pro-reform technocrats” who will deliver the needed reforms to hit a 7% growth target. President Yudhoyono is trying to expedite infrastructure projects and he has pledged to curb abuses of power in the country. (Why is Indonesia thriving?)

U.S. Treasury Secretary Timothy Geithner, Indonesian finance minister Sri Mulyani Indrawati and Singaporean finance minister Tharman Shanmugaratnam called for flexible global exchange rates, stating that “market-oriented exchange rates in line with economic fundamentals will be essential in assuring the resource and sectoral shifts to match and foster the new patterns of demand,” according to The Wall Street Journal. The ministers also urged countries to focus more on sustaining private demand growth as fiscal measures are lifted.

For more information on Indonesia, visit our Indonesia category.

• Market Vectors Indonesia ETF (NYSEArca: IDX): up 170.9% since the market low

Max Chen contributed to this article.

Holdings: EEG holds companies domiciled in emerging markets; some of the top companies in the fund include Russian natural gas company Gazprom, Brazilian energy company Petroleo Brasileiro, Latin American wireless provider America Movil and Bank of China.

Objective: EEG seeks to track the Dow Jones Emerging Markets Titans Composite Index, which is an index composed of a representative sample of 100 emerging market companies deemed by Dow Jones to be leaders in each of 10 sectors.

Things to Know

• Brazil is the top country, with 24.9% of the weighting. China has 24.3%, Russia has 13.4% and India has 13%. Other countries include Mexico, South Africa, Chile and Indonesia.
• Oil and gas is the top sector, weighted at 30.8%; financial is 22.1%; telecommunications is 11.6%; and basic materials is 9.3%.
• The expense ratio is 0.75%.
• EEG is a relative newcomer on the ETF scene – the fund launched on July 22.

The Latest News

• Emerging Global Advisors CEO Bob Holderith feels that interest in emerging markets should continue to expand. “It’s a 25-year growth story in its sixth year.” The positive growth outlook for emerging markets goes hand-in-hand with the changing demographic picture in these countries.
• Holderith notes that in most of these countries, there’s a huge young population, all looking for the “Western experience”: cell phones, iPods, dining out and more. (More on Emerging Global Advisors).
• Although the pace may eventually slow down, Barron’s reports that emerging markets still have room left to grow in the long haul. And for the time being, they may be the place to hide out as developed markets still work toward normalcy.
• Emerging markets already account for one-third of the global GDP and 10% of the world’s market capitalization.

Turkey. Turkey is rapidly developing and there’s no indication that the economy needs aid from the International Monetary Fund (IMF). Growth in the economy could likely accelerate in 2011 after a return to growth in 2010. Turkey’s market index has been driven up by the banking sector, which makes up around 40% of the market. Bank earnings have been bolstered by a series of rate cuts that have reduced interest on customers’ deposits as lending rates remain high. (Does Turkey need more support?)

• iShares MSCI Turkey Invest Mkt Index (NYSEArca: TUR): up 179% since low; up 101.6% year-to-date

Russia. Next year’s growth could top 2% if oil prices stay high. Greater revenues from taxes on energy companies could also ensure this year’s budget deficit is smaller than expected. Economists believe Russia’s GDP growth may gain a foothold as soon as the fourth quarter because of fiscal stimulus. Additionally, the economy will pick up speed once oil prices increase and world economies recover. The Russian economy is dominated by resources and banking. (Russia’s potential stumbling blocks).

• Market Vectors Russia (NYSEArca: RSX): up 161% since low; up 139.5% year-to-date

Brazil. Brazil could sustain average annual economic growth of 5% over the next 10 years. Low inflation and sound fiscal policy have released a tide of investment in Brazil. For now, Brazil’s small-caps are benefiting from the carry trade. Companies are hiring workers to meet growing demand for manufactured goods and new homes. In 2010, Brazil’s economy is expected to grow 4.4%; this year, growth is expected to be around 0.12%. (Seven things to like about Brazil).

• iShares MSCI Brazil Index (NYSEArca: EWZ): up 125% since low; up 114% year-to-date

India. The Indian Prime Minister’s Economic Advisory Council expects the GDP to expand 6.5% to 6.75% in 2009-10, despite a potential decline in agricultural output. Inflationary concerns may be met by tighter monetary and fiscal policies in the coming months. Factors such as capital flows, domestic demand, portfolio flows and a strong savings rate have India in a good position to continue moving forward. (Why India could strengthen).

• WisdomTree India Earnings (NYSEArca: EPI): up 138% since low; up 88.2% year-to-date

Indonesia. A young population and a falling birth rate equate to a surge in the ratio of working population to the number of dependents. Circumspect fiscal policy has left the government with enough cash for infrastructure and public services. Indonesia may enjoy a period of political stability and does not rely too heavily on exports. Declining interest rates have helped boost consumption, which is around 60% of GDP. (Five points in Indonesia’s favor).

• Market Vectors Indonesia ETF (NYSEArca: IDX): up 180% since the low; up 155.6% since Jan. 20 inception

Max Chen contributed to this article.

Many outside of Indonesia don’t realize that the country is actually doing quite well, with a stable government and an economy that has evaded the full force of the global downturn – only China and India are growing faster than Indonesia, according to The Economist.

Still, the country has some problems:

• Indonesia remains prone to sectarian and ethnic violence
• More than 15% of Indonesians live below the poverty line
• Unemployment stands around 8%, but the workforce is growing
• Inequality has widened
• Abusers of power in the former regime are going unpunished; Indonesia is rife with corruption
• Infrastructure is poor, if not non-existent
• Choking smog is being pushed down by El Niño weather, which also highlights the country as the world’s third-largest emitter of carbon

On the other hand, there are some hopeful points about Indonesia:

• A young population and a falling birth rate equates to a surge in the ratio of working population to the number of dependents. More than half of the population is likely to live in urban areas, indicating a boost in consumption.
• Circumspect fiscal policy has left the government with enough cash for infrastructure and public services.
• The re-election of Susilo Bambang Yudhoyono and his running mate voices the people’s need for reform.
• Indonesia may enjoy a period of political stability. The process of democratizing the country is now in full swing.

• Market Vectors Indonesia ETF (NYSEArca: IDX): up163.2% year-to-date

For more information on Indonesia, visit our Indonesia category.

Max Chen contributed to this article.

High spending on legislative and presidential elections along with increases in government expenditure disbursements allowed the World Bank to revise projections for Indonesia’s growth this year upward to 4.3% from 3.5%, reports Aditya Suharmoko for The Jakarta Post.

The World Bank estimates Indonesia’s economy will reach 5.4% growth in 2010, while the Indonesian government is shooting for a 5.5% growth target for 2010.

Indonesia’s domestic market and its low reliance on exports allowed the economy to dodge the full force of the global financial crisis. The country also has a strong banking sector and sound macroeconomic management.

The Indonesian government is continuing to disburse its stimulus, which is driving up domestic demand, a key factor in the country’s economic growth. The government believes deficit will run at 2.4% of GDP for 2009, while the World Bank forecasts a 2.2% GDP deficit.

• Market Vectors Indonesia ETF (NYSEArca: IDX): up 34.5% in the last three months

For more information on Indonesia, visit our Indonesia category.

Max Chen contributed to this article.

Some points in favor of Indonesia’s economy include:

• World Bank representative Joachim von Amsberg thinks Indonesia could see 7% growth once President Susilo Bambang Yudhoyono doubles spending on roads and power to $140 billion by 2014, which will also bring 33 million out of poverty, reports Achmad Sukarsono for Bloomberg.
• Indonesia does not rely too heavily on exports and the declining interest rates have helped boost consumption, which is around 60% of GDP.
• The economy expanded 4.4% in the 1st quarter year-over-year.
• The Central Bank cut its benchmark interest rate by 2.75% since December.
• The government has put $7.6 billion in stimulus plans to finance infrastructure projects and the money should help ease unemployment, which stands at 8.1%.

The International Monetary Fund (IMF) says investor sentiment toward the country has improved, but warns of another round of global risk aversion to developing markets, which could affect external liquidity, demand and growth prospects for Indonesia, according to China Views. The organization expects the economy to grow 3.5% this year and 4.5% in the next while the government projects a 4.5% expansion this year and 5.5% for the next. Exports could drop 0.9% this year and 0.5% next year.

The IMF urges the Indonesian government to maintain some stimulus in 2010, since there is room for a higher fiscal deficit, wrotes Lesley Wroughton for Reuters. Indonesia’s exchange rate is “broadly in line with fundamentals” and reserves are at adequate levels. However, the IMF advises that the country should strengthen its tax system and lower energy subsidies so that there will be more fiscal space for infrastructure and social spending.

• Market Vectors Indonesia ETF (IDX): up 19.3% in the last month

For more information on Indonesia, visit our Indonesia category.

Max Chen contributed to this article.