iShares MSCI Malaysia (EWM) has had a good year and proven itself to be a hearty exchange traded fund (ETF). EWM is up 63% over the past year in comparison to the average emerging-market fund, which is up 55% in general, reports Rob Wherry for SmartMoney.com.
Emerging markets are on the minds of many an investor, and new ETFs focused on these markets continue to be launched. EWM launched in 1996, so it is rare to even find an ETF with a decade long track record. Malaysia’s economy is expected to grow at 5.6% this year and 5.8% next year. The country is also touting low inflation, stable interest rates and expanding fiscal policy.
Some things to consider if you want to invest in Malaysia include the fact that their economy enjoys a good trading relationship with the U.S. So while your exposure is international, a lot can depend on American consumers. The $1 billion ETF is highly concentrated in finance with 32% of assets in that sector. Financials tend to have lower price/earnings ratios than the broader market and EWM has a P/E of 18. EWM is up 37.6% year-to-date.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.