Analysts have already been touting emerging markets as something for an investors to monitor. With the Federal Reserve looking to potentially cut rates, and Trump proclaiming the likelihood of a trade deal, emerging markets could be ripe for investment.
Although emerging markets have had a turbulent year, a number of exchange traded funds, especially those with exposure to technology companies are up as much as 11% year this month.
Here are 5 hot emerging markets ETFs up big this past month, as of June 27, 2019:
1. The First Trust Emerging Markets AlphaDEX Fund (FEM) is an ETF that seeks investment results that correspond generally to the price and yield, before the Fund’s fees and expenses, of an equity index called the NASDAQ AlphaDEX Emerging Markets Index.The NASDAQ AlphaDEX® Emerging Markets Index employs the AlphaDEX® stock selection methodology to select stocks from the NASDAQ Emerging Markets Index. The Index is constructed by ranking the stocks in the NASDAQ Emerging Markets Index separately on growth and value factors. This past month FEM is up 11.37% with an expense ratio of 0.80%.
2. The ALPS Emerging Sector Dividend Dogs ETF (EDOG) is an ETF that seeks investment results that replicate as closely as possible, before fees and expenses, the performance of the S-Network Emerging Sector Dividend Dogs Index. The S-Network Emerging Sector Dividend Dogs Index selects five stocks in each of the ten GICS sectors that make up the S-Network Emerging Markets which offer the highest dividend yields as of the last trading day in November. The fifty stocks that are selected for inclusion in the portfolio are equally weighted. With a 0.6% expense ratio, EDOG is up 9.9% this past month.
3. The Invesco DWA Emerging Markets Momentum ETF (PIE) is an exchange traded fund launched and managed by Invesco Capital Management LLC. The fund invests in public equity markets of global emerging region. It invests in stocks of companies operating across diversified sectors. The fund invests in momentum stocks of large-cap companies. It seeks to track the performance of the Dorsey Wright Emerging Markets Technical Leaders Index, by using full replication technique. Invesco Exchange-Traded Fund Trust II – Invesco DWA Emerging Markets Momentum ETF was formed on December 27, 2007 and is domiciled in the United States. The fund will invest at least 90% of its total assets in the securities that comprise the underlying index. The underlying index is comprised of equity securities of large capitalization companies based in emerging market countries. The fund is currently up 9.88% this past month and has an expense ration of 0.90%.
4. The iShares Emerging Markets Infrastructure ETF (EMIF) seeks to track the investment results of an index composed of 30 of the largest emerging market equities in the infrastructure industry. The ETF offers exposure to infrastructure companies in emerging markets. Investors can use it to seek targeted access to a specific subset of emerging market stocks. The fund is currently up 9.85% this past month and has an expense ration of 0.75%.
5. The iShares Emerging Markets Dividend ETF (DVYE) seeks to track the investment results of an index composed of relatively high dividend paying equities in emerging markets. Investors can gain exposure to a broad range of established companies in emerging markets countries using the fund. They will have access to 100 dividend-paying emerging market stocks. The fund is currently up 8.81% this past month and has an expense ration of 0.49%.
Emerging Markets Relative Value ETF Plays
For investors looking for the continued upside in emerging market assets, whether driven by a weakening USD or continued developments around trade, the Direxion MSCI Emerging Over Developed Markets ETF (NYSEArca: RWED) offers them the ability to benefit not only from emerging markets potentially performing well, but from emerging markets outperforming developed markets.
Conversely, if investors believe that resolutions to the big issues impacting sentiment today are in motion, the Direxion MSCI Developed Over Emerging Markets ETF (NYSEArca: RWDE) provides a means to not only see developed markets perform well, but a way to access a convergence/catch-up in performance of DM relative to EM, a spread that has clearly widened over the past 6 months.
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