None of this is to say EEHB is the perfect emerging markets ETF. It has just $2.1 million in assets under management, though that number could move higher if the cyclical rotation theme gains momentum. Additionally, the S&P BMI Emerging Markets High Beta Index, the ETF’s underlying index has historically underperformed the MSCI Emerging Markets Index, according to PowerShares data.
With the near-term outlook for emerging markets equities and ETFs murky, the obvious must be remembered with EEHB. That is the ETF will need high-beta sectors to fully come into style along with getting the benefit of two of China, South Korea and Brazil perking up.
PowerShares S&P Emerging Markets High Beta Portfolio
ETF Trends editorial team contributed to this piece.
Full disclosure: Tom Lydon’s clients own EEM.