Time To Grab A Piece Of The Emerging Markets PIE With This ETF?
While the number of emerging martkes stocks trading on U.S. exchanges as American Depositary Receipts (ADRs) continues to grow, there is a vast amount of equities from emerging markets that have yet to make it to U.S. bourses.
Options such as China's Shanghai-listed A and B shares are off limits to foreign investors and buying stocks listed on international exchanges can be expensive. In addition, most brokers only offer access to a few global markets, and that list often doesn't include emerging markets.
Well if you're looking for exposure to emerging markets stocks that don't have U.S. listings, you might want to check out the PowerShares DWA Emerging Markets Technical Leaders Index (NYSE: PIE)(FREE stock trend analysis).
PIE is an ETF that tracks the price and yield performance of the index called the Dorsey Wright Emerging Markets Technical Leaders index while passing on stocks listed in the U.S.
Top holdings include Nine Dragons Paper Holdings, a Chinese paper firm, and Vivo Participacoes (NYSE: VIV)(FREE stock trend analysis), a Brazlilian telecom which does trade in the U.S. All told, there are roughly 100 stocks in PIE and some do trade in the U.S., though most do not.
China and Brazil account for almost 33% of PIE's holdings, but South Korea and South Africa are also well represented. PIE also has stakes in Malaysia, Turkey and Vietnam.
Financials account for more than 17% of the sector exposure and consumer discretionary and consumer staples are both over 11%.
PIE's investment style is diversified with everything from large cap value to small cap growth represented.
While PIE is thinly traded (less than 23,000 shares per day), its performance has been impressive. The ETF is up more than 50% year-to-date, though that lags the more popular iShares MSCI Emerging Markets Index (NYSE: EEM)(FREE stock trend analysis).
The bottom line is PIE may continue to prove to be unheralded, but rewarding emerging markets ETF that investors may want to take a look at.
