Emerging Market ETFs Win Clinton, Trump Debate

ASEA leans toward southeast Asian economies, including Singapore 32.1%, Malaysia 25.5%, Indonesia 19.8%, Thailand 14.7% and Philippines 7.9%.

GMF top country weights include China 44.2%, Taiwan 21.5%, India 17.7%, Malaysia 4.5%, Thailand 4.6%, Indonesia 4.3% and Philippines 2.5%.

EEMA also includes Asia Pacific exposure, except the MSCI categorizes South Korea as an emerging economy. Country weights include China 37.4%, South Korea 20.5%, Taiwan 16.9%, India 11.9%, Malaysia 3.7%, Indonesia 3.8%, Thailand 3.1% and Philippines 1.9%.

Moreover, the Republican nominee has questioned NAFTA and free trade, vowed to add tariffs on Mexican imports and wanted to build a border wall to keep out Mexican immigrants, adding to price volatility in the Mexican peso in recent months. The peso was one of the most undervalued emerging market currencies ahead of the debates and has acted as a bellwether of developing market sentiment to the likelihood of a Trump presidential win.

ETF investors can also gain exposure to the Mexican markets through the iShares MSCI Mexico Capped ETF (NYSEArca: EWW), which holds broad range of companies in Mexico, and SPDR MSCI Mexico Quality Mix ETF (NYSEArca: QMEX), which tracks a more customized basket of Mexico stocks that were selected based on metrics like value, quality and low volatility. Since the two ETFs do not hedge currency risks, a strengthening peso currency would further bolster returns – an appreciating peso would translate to higher U.S. dollar-denominated returns.