The S&P India Nifty 50 Index Fund is up about 27% this year. The limited trade with Europe has helped the Indian economy withstand the global economic downturn and should support growth in 2013. A GDP rate of 5.3% is targeted in 2012, while the country is trying hard to dodge a credit downgrade. [India ETFs Rise on Reform, Goldman Bulls]

Mexico has been making headline for drug trafficking and government corruption,  however, the economy managed to maintain growth in 2012. The iShares MSCI Mexico Investable Market Index (NYSEArca: EWW) is up 35% this year, while the Mexican peso has remained strong. The peso has gained 7.8% year-to-date. The export market remains an area of strength for this economy.

Inflationary pressure is the biggest threat to the economy, with the current rate at 4.2%. A 2%-4% rate is targeted in the coming year. [Mexico Shines in Latin American ETFs]

iShares MSCI Turkey Index

Tisha Guerrero contributed to this article.

Full disclosure: Tom Lydon’s clients own EEM.

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