An Outperforming Emerging Market ETF Strategy

Each week, ETF Trends publisher Tom Lydon sits down for “ETF of the Week” for MarketWatch on Chuck Jaffe’s MoneyLife Show where he highlights big movers and losers among exchange traded funds.

This week, Lydon looked at the PowerShares FTSE RAFI Emerging Markets Portfolio (PXH) as emerging markets are beginning to outshine developed markets.

Emerging market assets initially plunged in a knee-jerk reaction to Trump’s election day win. Many anticipated higher interest rates, a stronger U.S. dollar and more protectionist policies.

However, the focus is now on steadily improving fundamentals – the worst may have already been priced in.

PXH is based on the Research Affiliates Fundamental Index methodology, selecting stocks based on book value, cash flow, sales and dividends.

Click here to listen to the podcast.