Most stock exchange traded funds have been a mess this month on slowdown fears, Greece and European debt. However, there are pockets of strength in some single-country ETFs.
The emerging economies were among the first movers during therally, but the broader index of developing markets has tapered off as a risk-off sentiment grips equities. Still, some country-specific exchange traded funds are bucking the trend, holding on to their lofty heights.
So far, four developing economies have outpaced the global markets: Colombia, the Philippines, Thailand and Vietnam.
Combined, the country-specific ETFs that track these markets have jumped at least 16% and as much as 35% year-to-date, compared to an average 4% for all emerging market countries, reports Trang Ho for Investor’s Business Daily. These economies are still expected to expand 4% to 7.5% in 2012 and in 2013.
Carl Delfeld, editor of Pacific Rim Confidential, believes that these four emerging markets have stronger fundamentals than the BRICs – Brazil, Russia, India and China, the four largest.
For instance, “half of the population of Vietnam and Philippines is under 25, while China will grow old before growing rich,” Delfeld noted in the article.
Investors who want to keep an eye on these markets may look toward their respective ETFs: