What’s leading one of the nation’s top endowments – Harvard University’s, to be exact – to load up on emerging market exchange traded funds (ETFs)?
In Harvard’s top U.S.-listed holdings for the end of the first quarter, the most copious amount of U.S.-listed equity holding by a wide margin was in iShares MSCI Emerging Markets Index (EEM), writes Carl T. Delfeld for Seeking Alpha.
- iShares MSCI Emerging Markets Index (EEM): up 27.2% year-to-date
This has been a growing trend, with more investment interest in individual emerging markets. Harvard isn’t stopping with just EEM, either. The endowment is also increasing its allocation to funds focused on China, Brazil, India, Mexico and South Africa.
Why are emerging markets so attractive these days? The sentiment toward them has been lifting gradually lately, reports Nick Godt for MarketWatch. Yesterday’s performance in India only furthered the good feelings toward those markets. Some caution that the rally might be overdone, so be sure to watch the trend lines for hints.
A potential trader may look at the whole of the emerging markets through ETFs such as EEM, or one may pick out individual countries to satiate one’s investment pangs.
Current emerging markets above their trend lines include:
- SPDR S&P China (GXC): up 27.3% year-to-date
- iShares MSCI Taiwan Index (EWT): up 40.1% year-to-date
- iShares MSCI Singapore Index (EWS): up 24.3% year-to-date