ACCU currently holds six ETFs, including the iShares MSCI Japan ETF (NYSEArca: EWJ), iShares MSCI China ETF (NYSEArca: MCHI) and the iShares MSCI Russia Capped ETF (NYSEArca: ERUS). Garff nots “you can buy the average Russian company for five times earnings or four and a half times forward earnings.”
Russian stocks typically trade at a discount to the broader emerging markets universe, but this year, those stocks have been found trading at noticeable discounts to their historical averages. For most of 2013, however, investors have not been seduced by those low valuations as ERUS is lower by nearly 11%. [Oil Still an Issue for Russia ETFs]
Garff is bearish on Chile, noting Accuvest is short the South American country in a long/short portfolio, “but avoiding it is just fine, too.” The iShares MSCI Chile Capped ETF (NYSEArca: ECH) is down more than 28% this year.
iShares MSCI Chile Capped ETF
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of DXJ.
