Over the past year, iShares MSCI South Africa ETF (NYSEArca: EZA) was up 2.9%, iShares MSCI Turkey ETF (NYSEArca: TUR) was 5.0% higher and iShares MSCI Brazil Capped ETF (NYSEArca: EWZ) plunged 22.1%. [Brazilian Bungle: More New Lows for Brazil ETFs]
With the prospect of the U.S. Fed thinking about a rate hike, these less stable countries could face even greater pressures in the mid-term. [Strong USD Forces Down Emerging Market ETFs]
“The next 12-18 months may make things sufficiently worse so they can then get better,” Morgan Stanley analysts said.
For more information on the developing economies, visit our emerging markets category.
Max Chen contributed to this article.