Best And Worst ETFs Of The Week Amid April Foolishness
Several international markets traded with remarkable strength this week as political and economic news played a shift in global trends.
The Vanguard Emerging Market ETF (NYSE: VWO) gained more than 4.94 percent since last Friday in response to notable break-outs in Russia and China. These closely watched nations represent a significant allocation within the market cap weighted VWO and may generate further interest for investors looking to diversify capital overseas.
It was also announced on Friday that world leaders have reached a framework for reducing sanctions against Iran in conjunction with oversights of its nuclear programs. This could potentially add a new dynamic to oil and Middle East-related markets moving forward.
The following ETFs represent a sample of the best- and worst-performing funds during the holiday-shortened week.
BEST: Nigeria Stocks
The news of a historic political election in Nigeria this week was the country’s first democratic transfer of power. This single event sent the Global X MSCI Nigeria ETF (NYSE: NGE) 17 percent higher on the week as optimism flooded this beaten down market.
NGE tracks 29 companies domiciled in or whose revenue is largely generated from Nigeria. This ETF is now 41 percent off its February low that was generated largely as a result of collapsing oil prices and social unrest.
The institution of new government may be just what this small $26 million fund needs to regain its footing in 2015.
WORST: Transportation Stocks
Transportation services stocks saw a dip this week as this industry continues to grapple with the volatility in oil prices. The SPDR S&P Transportation ETF (NYSE: XTN) fell over 7 percent since last Friday after hitting a high in late March.
XTN tracks 49 airline, trucking, shipping and logistic companies in a modified equal weighted index. This unique ETF allocates approximately 2 percent to each company within the fund to allow even small companies to have a similar impact on the total return.
Transport stocks can often be affected by energy prices and are considered economically sensitive to global consumption as well.
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