Emerging Markets ETFs Racked by Trade Tensions

The latest news surrounding the escalating trade tensions between the United States and China is not only affecting the markets of these economic superpowers, but another negative byproduct is that emerging markets are also feeling the aftereffects of the tariff battles.

This is evident with the MSCI Emerging Markets Index down 1.00% today as more news regarding tariff wars between the U.S. and China continue to dominate the news. Trade tensions between the U.S. and China ensued last Friday after U.S. President Donald Trump introduced a 25 percent tariff on $50 billion of Chinese goods with China countering with a 25 percent tariff on $34 billion of U.S. goods.

Related: Trade Wars Drag Dow Down 200 Points at Open

One ETF not taking too kindly to the ensuing trade wars is the Vanguard FTSE Emerging Markets ETF (NYSEArca: VWO)–down 1.60% today and 2.65% year-to-date. VWO could be getting short interest from traders, especially if the U.S.-China trade tensions play out longer than expected.