U.S. investors may gain exposure to overseas markets through various country- or region-specific ETFs. However, these U.S.-listed international stock ETFs may not trade during normal working hours in the respective international markets. For instance, traders have used EWM as a way to receive real-time price discovery while the underlying Malaysian markets are closed. Consequently, EWM was trading at a 5.35% discount to its net asset value at the end of Thursday.
Potential investors interested in gaining international exposure should then seriously consider limit orders to better efficiently price trades.
The Malaysia ETF rebounded after losses tied to an upset election win. Assuaging market fears, the newly inaugurated Prime Minister Mahathir Mohamad said he will address concerns about the economy, with state finances and economic management as his priorities.
Furthermore, Mahathir, who previously served as prime minister for 22 years ending in 2003, said he’s seeking an active stock market and an increased overall market capitalization, adding there shouldn’t be any need to devalue the Malaysian ringgit currency.
For more information on the developing economies, visit our emerging markets category.