The iShares MSCI Philippines ETF (NYSEArca: EPHE) is one single-country emerging markets exchange traded fund ending 2016 with a whimper. In the current quarter, the lone Philippines ETF is down more than 16%, bringing its year-to-date loss to over 8%.

EPHE has tumbled nearly 24% from its third-quarter highs, putting the ETF in a bear market. Plus, the ETF labors 16% below its 200-day moving average.

Newly elected President Rodrigo Duterte is a big reason why EPHE is lagging its counterparts and why some global investors are skittish about Philippine equities.

Earlier this year, Philippine presidential race weighed on investor sentiment as Rodrigo Duterte had been tight-lipped on what he would do to support the economy, fueling uncertainty over the economic outlook. In the weeks before the election, investors dumped Philippine equities, expressing uncertainty over Duterte’s economic plans and lack of policy-making experience, reports Lillian Karunungan for Bloomberg.

With 2017 almost here, risks remain for the Philippines and EPHE. Political volatility is a driving factor behind those risks.

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