It is hard to keep track of each country in the vast world of exchange traded funds (ETFs). That’s why we are here to provide some limelight for the less talked about countries. We know you’re interested.
Indonesia boosts some solid basic fundamentals including a reform minded government, an upwardly mobile population, a healthy banking system and a resource-rich economy. But that doesn’t mean Indonesia’s ETF is without risks. The country was also one of a lucky few that posted a positive growth for the first quarter. Morgan Stanley feels that Indonesia should be included in the BRICs (Brazil, Russia, India and China), to form the BRIICs.
- Market Vectors Indonesia ETF (IDX): up 70.8% over three months
Chile is comfortably positioned for the eventual recovery of global economies as a global exporter of copper. The country’s GDP is holding up, the poverty rate is going down and growth is expected to rise on increased public spending. Economists expect Chile to sidestep a recession, and by year’s end, it could be one of the world’s 30 richest countries
- iShares MSCI Chile Index (ECH): up 51.9% year-to-date
Peru is one of the most recent countries to enter the ETF family. The latest ETF from iShares is the MSCI All Peru Capped Index Fund (EPU) which has an expense ratio of 0.63%. The ETF tracks the MSCI All Peru Capped Index. Peru touts the lowest annual inflation of any other Latin American country and has low fiscal and external threats. Direct investment is on the rise and the trend could continue well throughout 2009. Peru’s credit rating is higher than that of Brazil’s.
- MSCI All Peru Capped Index Fund (EPU)
For more information on emerging market countries, visit our emerging markets category.
Max Chen contributed to this article.
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.