Booming economic growth in China helped push the China ETFs to the number one and two spots for the year. iShares FTSE/Xinhua China 25 Index (FXI) and PowerShares Golden Dragon Halter USX China (PGJ) were up 81% and 51% respectively. Part of the growth in China is due to cargo – manufactured goods need to move throughout, in and out of the country; construction – infrastructure needs to be built; and consumers, also known as chuppies – consumption of high end goods is the current trend.
On the other side of the globe, Spain was one of the fastest growing economies in Europe, due to a wave of mergers and acquisitions, a surge in construction and a real estate boom. All factors helped boost iShares MSCI Spain (EWP) ending the year up 48%.
Back in Asia, doing business with your neighbor certainly can be a plus, as it was for Singapore. The country has the the world’s busiest port and enjoys a healthy economy. iShares MSCI Singapore (EWS) represents the region and was up 43% for the year.