Best & Worst ETFs Of The Week Amid International Stimulus Measures

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The stock market hit another all-time high on Friday after China unexpectedly cut its benchmark interest rate and the European Central Bank announced it is expanding asset purchases to boost liquidity. Both moves were announced with the intention of spurring growth and preventing economic stagnation.

The SPDR S&P 500 ETF SPY continues to react favorably to overseas stimulus measures and is now sitting on year-to-date gains of over 12 percent. A strong finish to the year seems likely given the recent strength.

The following ETFs represent a sample of the best- and worst-performing funds over the last five trading sessions.

BEST: Brazil Stocks

The Brazilian stock market jumped on Friday after speculation that former Treasury Secretary Joaquim Levy would be installed as the new finance minister. This news sent the iShares MSCI Brazil ETF EWZ over 11 percent higher on the week after hitting a low in mid-November.

EWZ tracks 74 large- and mid-cap stocks of companies that are domiciled or do a significant amount of business in Brazil. This ETF currently has over $5.1 billion in total assets and charges an expense ratio of 0.61 percent.

EWZ has been faltering in recent months as political and economic turmoil have roiled this key emerging market nation. However, the recent strength has led to a recapture of the 50-day moving average, which is a positive sign for Brazilian equities.

WORST: Nigeria Stocks

Nigerian stocks are no stranger to being in our bottom rankings and this African nation is once again struggling as the majority of global markets trend higher. The Global X MSCI Nigeria ETF (NGE) fell more than 4 percent last week to hit new year-to-date lows.

NGE is the only ETF that is focused solely on 30 Nigerian stocks. This fund is dominated by financial and consumer staples sectors, which together make up nearly 80 percent of the total holdings.

Nigeria has a significant portion of its economic activity tied to energy prices, which explains its recent woes. A side-by-side comparison of the price movement of NGE and crude oil prices shows a high correlation over the last 9 months.

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Posted In: Sector ETFsEmerging Market ETFsETFs
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