Emerging Markets ETF

After hitting multi-year highs, Thailand stocks are now under pressure, with a rising currency and a faltering export industry. [Travelers Love Bangkok but Investors Dumping Thailand ETF]

Mexico’s markets were also pressured in May, along with other Latina American markets. [The Hangover: Mexico ETFs Drop After Cinco de Mayo]

In comparison, the iShares ETF EEM has a smaller weighting toward these countries. Instead, the top country allocations in EEM include China 17.9%, South Korea 14.7% and Brazil 11.8%.

Nevertheless, PIE’s underlying index has proven to be a better long-term performer. According to PowerShares, the DWA Emerging Markets Technical Leaders Index has gained an annualized 13.5% over the past 3-years and 4.3% over the last 5-years, whereas the MSCI Emerging Markets Index showed a 3.3% 3-year increase and a 1.1% 5-year rise.

For more information on developing economies, visit our emerging markets category.

Max Chen contributed to this article.

Full disclosure: Tom Lydon’s clients own EEM.