2018 continues to be unkind to emerging markets, but the second half of 2018 could see the bulls finally wrestling control of emerging markets from the bears, which could serve ETFs like the VictoryShares Emerging Mkt Vol Wtd ETF (NASDAQ: CEZ) well.
CEZ seeks to track the performance of the Nasdaq Victory Emerging Market 500 Volatility Weighted Index with a focus on securities weighted by their risk rather than the traditional method via market capitalization–a testament to VictoryShares’ push for innovation, which is necessary in today’s ETF marketplace.
Relative to the MSCI Emerging Market Index, the S&P 500 has been on an upward trajectory despite trade wars that have laid emerging markets to waste, particularly in the past month. In addition, hawkishness exhibited by the Federal Reserve’s raising of interest rates and a rising dollar could continue to discourage investments in the U.S. from abroad.
However, near the tail end of June and heading into early July, CEZ has been rallying with a move above its 20-day moving average the past week–possibly an early sign that the curtains could be closing on an emerging markets sell-off. CEZ has been up 0.43% in the last give days.