How to Invest in Single-Country ETFs

Exchange traded funds (ETFs) that track a single country have have been a boon to many long-term investors. They allow investors to reduce their exposure to specific regional disruptions, such as the recent credit crunch, and they up the exposure available to countries that are profiting more than the United States or other distressed nations.

Global growth has been outpacing that of the United States' for some time now. Evidence of this can be seen just by looking at the performance of the S&P 500: year-to-date, it's down 5%. Its five-year average return is 10.6%, and the ten-year average is 3.9%.

Investors can't be blamed for considering looking abroad for places to put their money. Single-country funds offer more flexibility than mainstream equities, says Alan Farley for The Street.

Overnight gaps that can occur in single-country ETFs can subject them to volatility.

iShares MSCI Mexico (EWW) is an example, as it fell nearly 3% on April 25 because of weak earnings from America Movil (AMX). However, over the past decade, EWW has benefited from Mexico's steady growth in the last decade. Year-to-date, the fund is up 3.6%.

Other ETFs with a strong year-to-date performance include iShares MSCI Brazil (EWZ), which is up 12% and has an annualized return of 55.4% over the last five years;  iShares MSCI Taiwan Index (EWT), up 10.2% so far this year, with an annualized return of 18.6% over the last five years.

Brazil was upgraded yesterday by Standard & Poor's to "investment grade."

These uptrends over time with single-country ETFs are all well and good (hindsight is 20/20, right?), but what if you had bought Brazil in November and sold it in January? You would have been down 50%.

But each single country needs to be evaluated on its own merits. Not all of them are going to go up. When it comes to these funds, educate yourself and monitor the trends closely. Have your sell points set for each, letting it go when it either drops below its 200-day moving average or 8% off its high.

If you stick to the plan, hopefully you will achieve your goal of doing well on the uptrends while avoiding the volatility that occurs from time to time.

The Asian Tiger ETFs Aren't Roaring As Loud

Many Asian-country focused exchange traded funds (ETFs) are giving back their 2007 gains. Are the Asian tigers of 2007 going to become the sleeping tigers of 2008?

A standout such as iShares MSCI Singapore (EWS) has given back much of  2007 gains all during the first quarter of 2008, says Gary Gordon for ETFExpert.

iShares Xinhua China 25 Index (FXI) finished 35% off its highs last Friday, giving back 50% of its 2008 gains, within 14 days, and Gordon reminds us that a 35% loss requires a 50% gain to get back to your starting gate.

One tiger remains standing, however: The iShares MSCI Taiwan Index (EWT) is still up 14% over the same time period. It's quite a turnaround for the fund. In 2007, it gained only 3.8%. So far this year, it's up 11.5%, leaving other Asian countries in the dust.

If you believe that the Asian markets are merely in a slump and will eventually make a turnaround, Gordon suggests getting a little more diversification across Asia with funds such as iShares S&P Asia 50 Index (AIA), which invests in the top 50 companies from the leading tigers: Taiwan, Singapore, South Korea and Hong Kong. Taiwan is the only single Asian country outperforming the fund at the moment, which is down 6.2% year-to-date.

Another diversified fund is the BLDRS Asia 50 ADR Index (ADRA), which is down 9.3% year-to-date.

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

China's Inflation Creates More Opportunity For Other Emerging Market ETFs

China is facing an inflationary trend, and exchange traded funds (ETFs) from competing countries might be able to gain an edge against one of their biggest competitors. Thus far, Chinese growth has relied upon low prices with high top-line sales growth. Low-cost Chinese imports allowed a way to keep inflation at bay.

Carl Delfed for Forbes says the deflationary impact of China on world markets is now becoming an inflationary red flag with implications for global investors. Wages have begun an upward climb, energy is expensive and food prices and demand are exploding. The Chinese Consumer Price Index (CPI) was up 8.7% in just one year.

Delfeld recommends a lean toward countries that are net exporters of commodities instead of net importers like China. iShares MSCI Brazil (EWZ) or the iShares MSCI Hong Kong (EWH) present better opportunities than the iShares FTSE/Xinhua China 25 Index (FXI) ETF.

China's inflationary pressures will create opportunities for other emerging market countries to pick up the slack, such as India. India has two ETFs right now: the PowerShares India (PIN) and Wisdom Tree India Earnings (EPI).

This is an ever-evolving situation, so keep an eye on it. Once these areas head above their trend lines, they could be worth a look.

Taiwan Had a Busy Week, Sending Its ETF Lower

The Taiwan exchange traded fund (ETF), iShares MSCI Taiwan Index (EWT), fell 7.8% this week after the central bank raised its benchmark interest rate for the 15th consecutive quarter.

It also signaled that yet more increases are likely, report James Peng and Chinmei Sung for Bloomberg. The bank said that inflation might top the government's target of 2%.

The Taiwan dollar fell from a ten-and-a-half-year high on Thursday, because of foreign fund outflows, causing the stock market the Taiwan stock market to fall lower. Before then, the dollar had posted gains for seven consecutive sessions, says Reuters.

The United States also is breathing a sigh of relief that Taiwanese voters chose a president who is committed to easing tensions with China and expand trade with the country, reports Foster Klug for the Associated Press. President-elect Ma Ying-jeou has promised to reverse the policy of emphasizing political separateness from China, and instead work to take more advantage of the mainland's economic boom.

If this new era of cooperation works out, both economies could benefit.

Tom Lydon Discusses Taiwan Economy on "ETF Tracker"

Tom Lydon appeared on CNBC's "ETF Tracker" segment last Thursday to discuss the Taiwan economy. While global markets around the world have been declining recently, there is one area -- Taiwan -- which has been showing positive numbers year-to-date. Video from Tom's segment appears below:

February Was a Strong Month for Natural Resource ETFs

February turned out to be the month of energy and natural resources exchange traded funds (ETFs), beating out the juggernaut that is precious metals.

Richard Widows for The Street says funds that included an international focus took five of the next nine spots, while global income and emerging market equities took second and third place respectively.

Global equity managed a slightly negative total return for the month, but was still better than the average performance of -0.61% for all 652 ETFs tracked.

The best-performing fund for February was ProShares Ultra-Short Financials (SKF) up 22.64% taking an inverse position and leveraging the worst-performing financial services category. The sector continued to take a hit on recession fears.

iPath Dow Jones AIG Natural Gas Total Return (GAZ), iShares Silver Trust (SLV), iShares MSCI Taiwan (EWT) and Market Vectors Steel (SLX) all achieved returns in the double digits and led their respective categories.

Presidential Elections in Taiwan Could Lift ETF and Economy

Changes are afoot in Taiwan that could impact its exchange traded fund (ETF) in a postive way.

A presidential election is going to take place on March 22, and the odds-on favorite to win is Ying-jeou Ma, a candidate from the pro-business and less China-averse political party, reports Michael Zhuang for Guru Focus.

China and Taiwan's relationship has been tense. China wants to reconcile on its own terms, while Taiwan is divided over whether to stay separated or leave the door open to patch things up.

The outgoing president favored total separation, and the government has been blamed for hampering economic interactions with China and causing the Taiwanese economy to suffer while China was growing by leaps and bounds.

Now that a new leadership is going to come in, investors are liking the looks of Taiwan a little more these days, says Andrew Batson for the Wall Street Journal. In February, the iShares MSCI Taiwan (EWT) went up 10.4%. Its currency has been rising in value, as well, and is seen as evidence that more money is coming into the country.

Better days could lie ahead for this country if they play their cards right.

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

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.

Taiwan and ETF Are Going Through a Growth Spurt; Will It Keep It Up?

The iShares MSCI Taiwan Index (EWT) exchange traded fund (ETF) is up 3.8% year-to-date, leaving us wondering what is happening over there?

The greater Taipei region's real estate market beat the odds of a normally slow February, so says the latest realtor company statistics. The average price of a home rose to $9,860US per ping for February transactions, up 3% from the previous month, reports The China Post. A ping is a traditional Chinese unit of measurement, equivalent to 3.3 square meters.
 

Meanwhile, inflation is rising in Taiwan, too. Consumer prices rose 3.1% from a year earlier. This is the first time in four months that Taiwan has seen inflation, largely because of higher meat and vegetable prices. Chinmei Sung for Bloomberg reports that a resurgence of inflation related to the higher food costs may trigger the Central Bank to raise interest rates. The government said last month that consumer prices will rise 1.98% this year, faster than the previous estimate of 1.84%.

Taiwan's president Chen Shui-bian said the island has beefed up defense spending after its rival, China, said it wold do the same, reports Thomson Financial. For the first time in many years, military spending is going to account for 3% of Taiwan's GDP.

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

Sector Rotation In A Global ETF Portfolio

  Adapting your investment strategy with exchange traded funds (ETFs) is important when economies around the world are becoming more interrelated.

Doing so will add value and increase the chance of outperforming benchmarks, reports  Carl Delfeld for Index Universe. The wheres of a company is also becoming less important as the industries and sectors which it operates is taking center stage.

The basics of global indexing, says Delfeld, are take the S&P Global 1200, a composite of seven indexes that represent leaders in their respective regions. The market values of the 1200 companies in the indexes represent around 70% of the world's capital markets with a market value of $28 trillion or more. Here is a brief breakdown:

• The S&P 500 covers 75% of U.S. markets.
• The S&P Europe 350 covers 70% of the region's market cap across 17 countries.
• S&P/TOPIX 150 covers 70% of the Japanese market.
• S&P/TSX 60 offers exposure to 60 large-cap, liquid Canadian companies.
• S&P/ASX All Australian 50 is comprised of 50 liquid, domestic-oriented Australian companies.
• S&P Asia 50 covers 50 leading companies in Asia ex-Japan domiciled in Hong Kong, South Korea, Taiwan and Singapore.
• S&P Latin America 40 is a basket of 40 companies from Argentina, Brazil, Chile and Mexico which offers exposure to 70% of the regions' market cap. It is heavily weighted to Brazil and Mexico.

By using a top-down macro analysis of studying market-cap global sector weightings, a global sector rotation method can be useful in a growth portfolio. The weakness is that smaller countries get less weighting, and the traditional market-cap weighting which gives trademark exposure to emerging markets.

Hong Kong, Taiwan and Their ETFs Could Have Potential

If Hong Kong plays its cards right, it could become the world's most developed city, something that could be good news for its exchange traded fund (ETF).

An Lu for Xinhua says it will need to maintain its status as an international financial center and speed up its integration with mainland China in order to be the powerhouse one economist believes it could be.

Justin Lin Yifu, senior vice president and chief economist of the World Bank, also wants to see Taiwan remove its political barriers. Lin feels that the world economy is headed for another period of development after a correction, and the Chinese economy will grow overall about 10% between 2008 and 2009.

Powering the growth, he says, will be domestic demand and consumption while challenges with export uncertainties will be faced.

Any growth in Hong Kong and Taiwan could prove to be beneficial to the iShares MSCI Hong Kong Index (EWH) and the iShares MSCI Taiwan Index (EWT). Year-to-date, EWH is down 15.3%, while EWT is down 11.4%. Could the tide someday turn?

 

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.

Latin America and Its ETFs On the Upswing

There's been a lot of talk about Asia's performance this year, but Latin America and its exchange traded funds (ETFs) that have been performing nicely too.

PlanetQuant crunched the numbers and released their Global Equity Scorecard this week. They write on Seeking Alpha that the iShares MSCI Pacific ex-Japan (EPP) is down 9.1% for the past month, and some of the Asian country-focused ETFs declined in the same time period, including iShares MSCI Taiwan Index (EWT), iShares MSCI Australia Index (EWA) and iShares FTSE/Xinhua China 25 Index (FXI). EPP is up 19% year-to-date.

It's Latin America that has become a star in the emerging markets sector. iShares S&P Latin America 40 Index (ILF) is down only 0.2% for the past month and up 45.9% year-to-date. Brazil has the highest return of any of the countries: the iShares MSCI Brazil Index (EWZ) is up 69.5% year to date. Even the iShares MSCI Mexico Index (EWW), once ranked low on the scorecard, is creeping up. PlanetQuant says volatility in Latin America has risen, but it's not as high as that in China or the Asia Pacific ex-Japan.

Plentiful natural resources in Latin America may help it remain a strong performer for the near future.

Northern Trust Readies to Enter the ETF Marketplace

There's a new kid on the block of exchange traded funds (ETFs). Northern Trust is entering the  market with a big splash, by offering 19 foreign-market funds, according to Jesse Emspak at Investor's Business Daily.  There is not a domestic to be found in the mix, and according to a filing with the Securities Exchange Commission, the ETFs will track indexes using American, euro and global depositary receipts.

The firm plans for its ETFs to represent 19 countries, with eight of them focused on emerging markets: China, Hong Kong, Israel, Malaysia, Russia, Singapore, South Africa and Taiwan. The rest will track indexes in Europe, Australia and Japan.

There are a few other firms that have ETFs tracking some of the same countries Northern Trust is proposing, including Barclays iShares and State Street Global Advisors' SPDRs.

When it comes to the booming international markets, the more the merrier!

Economic News Continues to Improve for Taiwan and Its ETF

Taiwan's exchange traded fund (ETF) iShares MSCI Taiwan Index (EWT) received some news that could give it a bump up. Recent statistics show that Taiwan's overall growth rate this year will be higher than anticipated earlier, despite the global economic downturn triggered by the U.S. subprime credit loan crisis.

The statistics released in late August show that the growth rate during the second quarter this year reached 5.1%, which is 0.7% higher than predicted. It's the best growth performance in the past six quarters, the Taiwan Journal reports. Some experts think the growth rate could go up even higher. Officials noted the growth in domestic, private investments as well as foreign trade during the second quarter this year, with increased confidence in the high-tech manufacturing sector. The confidence is supported by the fact that during the second quarter, total investment from the private sector reached $17 billion, which is up by 12.5% compared with the same period last year. Other factors helping the economy include a rising employment rate, personal income is improving and the stock and real-estate markets are gaining confidence. Most Taiwanese economists believe that these increases have indicated that Taiwan's economy is headed for steady growth and stocks could be pushed upward. If the stocks go up, that will benefit EWT, which is already up 17.3% year-to-date.

Taiwan's Economy and ETF Is "Quite Healthy"

Perhaps one of the reasons Taiwan's exchange traded fund (ETF) generally has been a strong performer is because Taiwan's economy is in such good shape. The economy has had three years of interest-rate increases to contain inflation, according to the Central Bank Governor. On Sept. 20, the central bank increased its benchmark interest rate for the 13th quarter in a row. To keep the healthy trend going, the central bank is considering raising interest rates again, reports The China Post news staff. Another interest rate reduction could benefit iShares MSCI Taiwan Index (EWT) that is currently up 19.9% year-to-date.

In other ETF news for Taiwan, a fund-management firm, Primasia Investment Trust, plans to launch an ETF that holds 50 global semiconductor stocks in late March or early April, reports Alex Pevzner for MarketWatch. It will be Taiwan's first ETF that also tracks foreign stocks and provides investors with exposure to the global semiconductor industry. Initially, the ETF will be denominated in Taiwan dollars, but if the island's central bank approves, it could then switch over to U.S. dollars. It will hold nine Taiwan semiconductor companies, and the remaining 41 will be in the U.S., South Korea and Japan.

The World, According to FTSE

Recently, the Financial Times and the London Stock Exchange (FTSE)announced the results of its annual review of country classifications. As the countries' status changes, the holdings of emerging-market exchange traded funds (ETFs) could also change. The major indexes have different systems for classifying countries by stages of development. FTSE uses a three-tier system of classification that includes "developed," "advanced emerging and "secondary emerging" designations, according to Index Universe staff. The FTSE also updated its Watch List, which tracks countries that have a reasonable likelihood of a status change. Countries under review are:

• Israel
  Israel will become elevated to a developed market in June of 2008. It has been on the Watch List since 2006. Dow Jones and Russell Indexes both classify it as developed, while the S&P and MSCI give it emerging status.
• Hungary and Poland
  Both countries have been upgraded to advanced emerging markets. Although they meet quality-of-markets criteria for developed status, they must reach a per capita rating of "high" from the World Bank. However, other major indexes have designated these countries as just emerging.
• Pakistan
  The FTSE has removed this country because it no longer meets minimum requirements.
• Greece
  Also on the Watch List, this country is in danger of a downgrade from developed to emerging advanced. Current rules and conditions make it difficult for foreign investors to invest in the market, according to FTSE. Other major index providers classify this as a developed market. Greece also has made news as it is about to get its first ETF.
• Taiwan, South Korea
  These two countries are on the verge of becoming promoted to developed status from the advanced emerging rank. The Russell, MSCI and S&P Indexes all classify these as emerging countries, while the Dow Jones has them labeled as developed.
• China
  China's A-shares market is on the Watch List although its stock market is untouchable by foreign investors. Two criteria must be met to be included in the FTSE GEIS: 1) substantial expansion of the Qualified Foreign Institutional Investor and 2) removal of restrictions on foreign investment.

Which Emerging-market ETF Is Right for You?

Emerging-market exchange traded funds (ETFs) have been popular lately because of their generally strong performance over the past few years. The great thing about emerging-market ETFs is that there is wide selection; almost every ETF provider offers one, as Gary Gordon for ETF Expert notes. Yet, with many choices comes responsibility; investors need to look at the options and see what, if any, meet their financial goals. One way to tell them apart is through their country holdings. Here's a comparison:

• Vanguard Emerging Markets Stock ETF (VWO)
  South Korea dominates this ETF at 15.1%. Taiwan is next at 12.4%, followed by Hong Kong at 10.9%, Brazil at 9.4% and South Africa at 7.6%. VWO is currently up 18.4% year-to-date.
• SPDR S&P Emerging markets (GMM)
  GMM is equally heavy in Brazil and Hong Kong at 12.0%. Next comes South Africa at 8.9%, Taiwan at 6.6% and India at 6.3%. Having launched in March, GMM is currently up 6.3% over the last three months.
• iShares MSCI Emerging Markets (EEM)
  South Korea also is the largest holding in EEM at 15.8%. However, it differs from VWO in its lower holdings. Hong Kong gets 12.2%, Brazil has 11.6%, Taiwan gets 9.6% and South Africa at 8.4%. EEM is up 14.2% year-to-date.
• WisdomTree Emerging Markets High-Yielding Equity Fund (DEM)
  This ETF invests a whopping 27.8% in Taiwan, followed by 11.3% in Brazil, 9.3% in Korea, 8.7% in South Africa and 8.2% in Thailand. DEM just launched in July, which was bad timing, so it's down 5.0% over the last month.

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

Tension in Taiwan and its ETF (EWT)

Although the Taiwan exchange traded fund (ETF) iShares MSCI Taiwan Index (EWT) is down 5.4% for the week, year-to-date it is up 10.6%. While the country's ETF continues to enjoy an overall positive performance, the same cannot be said for the political conditions between Taiwan and its motherland China, according to Carl Delfeld of ETF XRAY. Tension arose between the two over Taiwanese President Chen Shui-bian's planned referendum on Taiwan's entry into the United Nations under its own name rather than under the Republic of China. Although China and Taiwan are not on the best of terms lately, Delfeld says China is unlikely to take action against Taiwan for five reasons:

1. Conflict with Taiwan wouldn't reflect well on China who is hosting the summer 2008 Olympics.
2. Taiwan presidential candidate Frank Hsieh announced that Taiwan's independence is not part of his platform, but it is a goal.
3. The United States has treaty obligations to Taiwan should China invade.
4. Japan joined the United States in its declaration to help Taiwan should conflict occur with China.
5. China is swallowing Taiwan economically.

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

Emerging Market ETF is the New Sample Platter

With so much growth in various emerging markets and their exchange traded funds (ETFs) around the world, how are you supposed to choose where to invest?

Consider the BLDRS Emerging Markets 50 ADR Index (ADRE); it has little of everything. Another bonus is that it's up 26.9% year-to-date. ADRE's top 10 holdings are from some of the best-performing emerging markets.

1. America Mobile (AMX) - makes up 5.7% of ADRE; Mexico
2. Taiwan Semiconductor Manufacturing (TSM) - makes up 5.3%; Taiwan
3. China Mobile (CHL) - makes up 4.8%; China
4. Petroleo Brasileiro (PBR) - makes up 4.4%; Brazil
5. Posco (PKX) - makes up 4.2%; South Korea
6. Companhia Vale Do Rio Doce - makes up 4.2%; Brazil
7. Kookmin Bank (KB) - makes up 3.8%; South Korea
8. Teva Pharmaceutical Industries (TEVA) - makes up 3.8%; Israel
9. Petroleo Brasileiro (PBR) - makes up 3.6%; Brazil
10. Infosys Technologies (INFY) - makes up 3.5%; India

South Korean ETF Not the Only Shining Star in Asia

As we mentioned yesterday, the exchange traded fund (ETF) iShares MSCI South Korea Index (EWY) is a rising star. However, it looks like EWY has some company as the iShares Asia region country-based ETFs yielded impressive performances last week, says Steven Towns of Seeking Alpha. iShares MSCI Japan (EWJ) was the only fund not up in double digits for the year as well as the U.S. broad market, represented by iShares S&P 500 Index (IVV).

Techonology Helping Taiwan ETF Hit New Highs

The Taiwanese exchange traded fund (ETF) continues to hit new highs despite the global market correction.  Taiwan is the 17th largest economy in the world, and serves as one of the "four tigers" along with South Korea, Hong Kong and Singapore, according to Asianinfo.com.  Taiwan's economy has lagged others in the region, but robust exports helped the economy grow in the first quarter.  Forbes reports the GDP grew slightly higher than average in the same time.

Taiwan has some problems with domestic issues, such as a downturn in private consumption, a weakening currency and money flowing out of the country, as noted in The Wall Street Journal.  iShares MSCI Taiwan (EWT) is up 3% year-to-date and has reached new highs.  With Taiwan Semiconductor Manufacturing as the top holding (14%), and 4 of the top 5 holdings are techonolgoy based, perhaps it is the export related industry that is helping out EWT.