Emerging Market ETFs Break Down, Hit 1 Month Low

Emerging market stocks and related exchange traded funds remain one of the weaker areas of the global markets, dipping to a one month low on Thursday.

The iShares MSCI Emerging Markets ETF (NYSEArca: EEM) fell 1.1% Thursday and is now trading about 2.0% below its long-term, 200-day simple moving average, with the benchmark MSCI Emerging Markets Index retreating for its sixth session over the past seven days.

Among the worst performing areas, Indonesia and South Africa lagged global markets, with the iShares MSCI Indonesia ETF (NYSEArca: EIDO) down 2.2% and the iShares MSCI South Africa ETF (NYSEArca: EZA) 1.7% lower.

“Markets are waiting for year-end, investors are putting small amounts on the table – no one wants to take on a lot of risk here around the turn of the year,” Per Hammarlund, chief emerging markets strategist at SEB, told Reuters.