Brazil was another big story this year, and the iShares MSCI Brazil Index (EWZ) was a strong performer, finishing up 75.7%. Among the factors that make Brazil so attractive are that inflation is near 40-year lows, the currency is strong, and it has a wealth of natural resources.
No real shocker, the Claymore/BNY BRIC (EEB) finished up 68.1% this year. The fund consists of Brazil, Russia, India and China, which happen to be among the top-performing countries this year. This fund was attractive for investors who just couldn’t decide which emerging market to go after and instead wanted to cover all the bases. Indecisiveness has never paid off so well, has it?
People in China continued to flock to the cities in droves, creating ever-growing demand for construction, technology and food. This is partly why the PowerShares Golden Dragon Halter USX China (PGJ) fund did well. It finished the year up 63.1%. Beijing hosts the 2008 Summer Olympics — will things continue to get better?
“An Inconvenient Truth” might have helped make a very convenient ETF: the PowerShares WilderHill Clean Energy (PBW). Now more than ever, it seems, people are interested in minimizing their impact on the environment. That, in turn, benefits companies with a commitment to clean energy. The fund received a boost earlier this month when President Bush signed an energy bill that calls for an increase in fuel efficiency standards and more use of biofuels. PBW wrapped up the year up 59.3%.