Get To Know These Bearish EM ETFs
Benzinga | Jun 22, 2012 11:25AM ET
Another round of troubling U.S. economic data and another grizzly flash reading on China's Purchasing Managers Index combined to sink global stocks today. Those data points serve as stark reminders that growth is slowing all over the world, even in alluring emerging markets.
Certainly, there are opportunities to be had in developing nations for patient investors. However, being patient right now could easily mean waiting on the sidelines for better pricing with traditional long emerging markets ETFs, while profiting on the downside with inverse funds.
The silver lining for emerging markets investors is that the most vulnerable countries and corresponding ETFs have become increasingly easy to spot. Fortunately, so are the bearish equivalents. Just look for the few ETFs that finished in the green today.
Direxion Daily Russia Bear 3X Shares (NYSE: EWZ ).
Then, there is Brazil's inflation problem, slowing growth, a faltering real and a political environment that is barely better than Argentina's when it comes to embracing foreign companies. China's economic woes loom large for Brazil as well because the world's second-largest economy is Brazil's biggest trading partner.
Ultimately there are more good reasons to own BZQ than EWZ in the current market environment.
BY The ETF Professor
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.