The Philippines still sports favorable demographics, a consumer-driven economy and sturdy government balance sheet. A higher-than-regional-average valuation is arguably justifiable given the premium investors are putting on developing economies with account surpluses. The Philippines has run a surplus every year for over a decade. [Account Surplus ETF Trade Yields Mixed Results]
J.P. Morgan is bullish on real estate and consumer-related shares in the Philippines. Financial services, consumer discretionary and staples combine for over 51% of EPHE’s weight. In Indonesia, the bank likes discretionary and industrial stocks, Bloomberg reported. Those sectors combine for 19.2% of IDX’s weight.
iShares MSCI Philippines ETF
Tom Lydon’s clients own shares of EEM.