Thrasher’s analysis seems to indicate EFA will continue trumping EEM. “Turning our attention to the Relative Strength Index, we can see solid support has been found at the 50 level over the last few months. This has kept the ratio in a bullish momentum range during the current uptrend. However, as the ratio breaks to a new high we don’t seem to be getting the same reaction in the RSI indicator.” he said.
Investors looking for a lower beta alternative to EFA can consider the iShares MSCI EAFE Minimum Volatility ETF (NYSEArca: EFAV). EFAV, which is less than two years old and already has nearly $774 million in assets, has a beta against the S&P 500 of 0.64 compared to 0.76 for EFA.
iShares MSCI EAFE ETF
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of EFA and EEM.