Dubious Prospects for Selling Low on Emerging Markets ETFs

BlackRock is overweight Turkish banks, which fell below book value for the first time in five years in December, according to Bloomberg. The $535.6 million TUR allocates 45.1% of its weight to the financial services sector, more than triple the weight the ETF devotes to any other sector, according to iShares data.

TUR’s P/E ratio of 11.1 is well below the comparable ratio on EZU and the S&P 500. In the six-year period ending 2013, TUR outperformed EEM in four of those years.

iShares MSCI Turkey ETF (NYSEArca: TUR)

Tom Lydon’s clients own shares of EEM and IWM.