Ten International ETFs That Deserve More Respect
By now everyone knows that growth of emerging markets ETFs has been exponential. Investors have become enamored by emerging markets, but that infatuation doesn't carry over to EVERY corresponding ETF.
In fact, there are more than a couple of ETFs with international slants that suffer from low assets and a lack of liquidity. And of this group, there are plenty of names that might not deserve the Rodney Dangerfield treatment.
Let's have a look at 10 international that deserve more respect (in no particular order.)
1) Market Vectors Poland ETF (NYSE: PLND): This is an ETF the ETF Professor has covered at length in the past and with good reason. Poland is by far the strongest economy in emerging Europe, yet that hasn't translated into strength for PLND. The ETF, which debuted in late November, is down about 0.5% and has attracted just $17.3 million in assets. Volume is less than 25,000 shares a day, but the Professor thinks this ETF ultimately survives.
2) Claymore/SWM Canadian Energy Income ETF (NYSE: ENY): ENY has been around for a while and has almost $75 million in assets. In addition, it's the best and only way to play the Canadian oil sands through an ETF. Don't focus on the slack trading volume, but do enjoy the 4%+ yield.
3) Global X/InterBolsa FTSE Colombia 20 ETF (NYSE: GXG): South America, or shall we say, Brazil, gets plenty of attention, but Colombia is also worth a look. GXG has doubled in the past year, yet few would know it. The ETF has less than $8 million in assets and trades less than 8,000 shares. It would be a shame to see this ETF disappear.
4) iShares MSCI Thailand Investable Market Index (NYSE: THD): OK, THD doesn't really suffer from low assets (almost $244 million) and volume is decent at almost 185,000 shares. Then again, these numbers belie the rapid growth of Thailand. THD is definitely a survivor and thriver and should accumulate more assets sooner rather than later.
5) SPDR S&P International Dividend ETF (NYSE: DWX): SPDR ETFs don't often fall by the wayside and DWX is probably here to stay, but given the diverse country and dividend exposure DWX offers, it deserves a little more respect.
6) Market Vectors Indonesia ETF (NYSE: IDX): Considering IDX is just over a year old, it has done an admirable job of attracting assets ($227.5 million), but considering that the ETF has nearly tripled in the past year and that Indonesia is another rapidly expanding Asian market, volume in IDX is weak at less than 82,000 shares a day.
7) WisdomTree Emerging Markets Small Cap Dividend (NYSE: DGS): Volume and assets aren't the problem here, they're both fair, but most investors probably don't realize DGS is up 80% in the past year. DGS is worth further examination.
8) WisdomTree International Energy ETF (NYSE: DKA): Take a look at the companies that DKA holds and you'll be stunned about the ETF's weak volume (23,400 shares) and small assets ($45.2 million). DKA's impressive constituent list makes it worth a look.
9) BLDRS Asia 50 ADR Index (Nasdaq: ADRA): Much like DKA, ADRA boasts an impressive lineup of well-known companies, but volume is weak at less than 10,000 shares and assets are less than $57 million. The idea here is good, but the stats are suspect.
10) iShares S&P Global Materials ETF (NYSE: MXI): With over $850 million in assets, we're not worried about MXI's AUM. Volume is decent, too, but it should be better considering materials are always in play and that the three largest iron ore producers in the world are found among MXI's top holdings. MXI is not optionable and that may be one reason investors gloss over this ETF, but if you're looking to play global materials demand through an ETF, look no further than MXI.
