Increased political stability is essential to decreasing Egyptian equity market volatility and luring foreign investors to the market. While EGPT has outpaced the iShares China Large-Cap ETF (NYSEArca: FXI) by 340 basis points over the past 90 days, the risk-adjusted returns favor FXI because t has been 700 basis points less volatile than FXI.
In favor of EGPT are valuation and a dividend yield that may come as a surprise to some investors. With a P/E ratio 7.77 and a price-to-book ratio of 0.97 at the end of the third quarter and a 30-day SEC yield of almost 8.1% as of October 11, EGPT is much cheaper with a far higher dividend yield than the broader emerging markets universe.
Market Vectors Emerging Markets ETF
