Top Emerging Market ETFs Of First Half 2017
Zacks Investment Research | Jul 03, 2017 12:20AM ET
Emerging market (EM) ETFs have had a great run this year (as of June 29, 2017) with iShares MSCI Emerging Markets Why No Taper Tantrum for EM ETFs Now ).
Several analysts also believe that part of the growth momentum in the developed world has trickled down to emerging markets in the form of trade and investments. Against this backdrop, investors must be interested in knowing which EM ETFs emerged winners in the first half of 2017. The year-to-date performance of the below-mentioned funds are as of June 29, 2017.
EMQQ Emerging Markets Internet & E-Commerce ETF EMQQ – Up 38.9% YTD
Emerging market and technology are two investing concepts that were among the high-flying areas in the first half. Powered by the twin tailwinds, EMQQ– which measures the performance of the emerging market Internet and ecommerce companies – was the topper in the EM space.
After all, the e-commerce bloc has bright prospects with the advancement of technology and Internet usage. EMQQ’s solid exposure to the soaring Chinese tech sector also helped the fund to a great extent. Notably, China takes about 60% of the fund followed by South Korea (read: EMQQ -- How This Little-Known ETF Beat Amazon (NASDAQ:AMZN) ).
First Trust Chindia ETF (PS:FNI) – Up 28.2% YTD
The fund’s focus is on China and India. Both markets were on an uptrend in the first half of 2017. Stabilization in the Chinese economy after considerable upheaval and buoyancy in the Indian economy on pro-growth reformative measures favored the fund. Plus, the fund is heavy on the information technology sector – the star of 1H17 (read: India ETFs: More Run Ahead? ).
WisdomTree Emerging Markets ex-State-Owned Enterprise ETF XSOE – Up 24.4% YTD
The fund can entice investors having less faith in the state-owned emerging market companies, but still intending to tap the region's growth story. According to the issuer, the MSCI emerging market index generated lesser returns than the U.S. markets in previous years for which the anemic performance of the state-owned enterprises was responsible (read: This New Emerging Market ETF Avoids State-Owned Firms ).
In terms of geographic exposure, China (27.5%), South Korea (16.5%) and Taiwan (11.5%) have a double-digit exposure each. Information Technology was the top sector of the fund with about one-third of total exposure.
First Trust Emerging Markets Small Cap AlphaDEX Fund FEMS – Up 22.3% YTD
The fund has a tilt toward Taiwan (30.8%) and China (13.5%) and focuses on small-cap companies of the emerging markets. Since small-cap companies better reflect the domestic market, this fund had every reason to score better when EM equities are trending up.
Get The News You Want
iShares Edge MSCI Multifactor Emerging Markets ETF EMGF – Up 19.5% YTD
The fund offers quality picks on the EM space. Inexpensive stocks, financially strong companies, trending stocks and relatively low market cap companies are included in the fund. China, South Korea and Taiwan are top three geographies of EMGF.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Zacks Investment Research
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.