Following the political battle of words between Democratic presidential nominee Hillary Clinton and Republican hopeful Donald Trump, many believed Clinton took the upper hand, with emerging market exchange traded funds coming out as a clear winner.
Emerging markets, notably Mexico and Indonesia, were among the winners of Monday’s debate as many investors believed a Clinton win would mean more favorable foreign trade relations.
Trump has exhibited strong protectionist rhetoric on international trading, vowing to renegotiate some trade agreements in his “America First” platform. Consequently, many emerging countries, notably those involved in the Trans-Pacific Partnership, could suffer under a Trump administration focused on protecting American industries.
Consequently, after the debates, many judged Clinton came out ahead, which helped benefit Asian Pacific markets, such as the iShares MSCI Indonesia ETF (NYSEArca: EIDO) and Market Vectors Indonesia Index ETF (NYSEArca: IDX), which target Indonesian markets.
ETF investors can also look at broader emerging Asia options, including the Global X FTSE ASEAN 40 ETF (NYSEArca: ASEA), SPDR S&P Emerging Asia Pacific ETF (NYSEArca: GMF) and iShares MSCI Emerging Markets Asia ETF (NYSEArca: EEMA).