How One Strategist Uses Emerging Markets ETFs

EWT allocates over 54% to technology stocks. Tech was the best-performing sector in the MSCI Emerging Markets Index for the three-year period ending Dec. 31, 2013.

According to S&P Capital IQ, Glovista’s third-largest position is the iShares MSCI Russia Capped ETF (NYSEArca: ERUS). Like rival Russia ETFs, ERUS tumbled on Monday on fears of escalating tensions in Ukraine. Sources of potential allure for Russia ETFs include valuations that are deeply discounted relative to long-term standards and the broader emerging markets universe along with Russia’s favorable dividend policy. S&P Capital IQ rates ERUS overweight.[Russia ETFs Plunge on Ukraine Headlines]

Glovista also holds stakes in the iShares MSCI China ETF (NYSEArca: MCHI) and the iShares MSCI Chile Capped ETF (NYSEArca: ECH). S&P Capital IQ has a marketweight rating on MCHI and does not rate ECH.

iShares MSCI Taiwan ETF

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