Despite ending the month on a down note, markets and exchange traded funds continued to rally through February, with the broader markets returning to the 2011 highs.

Many single-country ETFs for emerging markets are hot, including Market Vectors China (NYSEArca: PEK), Market Vectors Egypt (NYSEArca: EGPT) and Market Vectors Vietnam (NYSEArca: VNM).

The Dow Jones Industrial Average finished the month up 2.4%, and even crossed over the pivotal 13,000 mark. Meanwhile, the S&P 500 gained 4.0% and remains firmly above its 1,350 resistance level. The Nasdaq Composite also crossed the 3,000 level for the first time since the dot-com bust, adding 5.5% for the month.

The markets rallied on improving economic indicators: manufacturing numbers were better, jobs numbers gained at a steadier pace, existing home sales were better-than-expected and consumer sentiment is recovering.

Also contributing to the lower market volatility is that the possibility of a Greece default has been largely abated. Demand for safe-haven Treasuries is easing as the markets see a risk-on sentimentality.

Nevertheless, the markets ended the month on a sour note, following Fed Chairman Ben Bernanke’s lukewarm overview of the U.S. economy and the lack of a definitive quantitative easing measure.

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