Market Overview

The Best And Worst BRIC Country ETFs

The Best And Worst BRIC Country ETFs

Overall, the emerging markets have lagged the U.S. market greatly in 2014, down on the year versus a double-digit gain for the S&P 500.

The Guggenheim BRIC ETF (NYSE: EEB) has lost 3.6 percent this year and has not been able to rebound after the global market sell-off in September.

Best-Performing ETFs

When delving into the emerging market asset class, there is a major divergence between the winners and the losers. Since the end of June, the best performers has been the iShares S&P India Nifty 50 Index Fund (NYSE: INDY) with a gain of 8 percent.

The election results that sent the country’s stocks soaring earlier this year continue to be the catalyst for higher stock prices. The pro-business government should be able to allow the populous country to prosper.

Related Link: Burger King Opens First Restaurant In India

Another BRIC country, China, has also been a leader during the second half of the year. The iShares FTSE/Xinhua China 25 Index (ETF) (NYSE: FXI) is up 6 percent and hit a multi-year low in mid-September before the selling began.

The soft landing concerns remain for the country; however, the growth is still robust and the valuations have come to levels that make the country attractive.

Worst-Performing ETFs

On the other end of the spectrum is the disaster that is Russia. The Market Vectors Russia ETF Trust (NYSE: RSX) is down 20 percent since the end of June and is trading near a multi-year low. The issues began with the Ukraine situation and have been exasperated with the sanctions against the country in conjunction with falling energy prices and a tumbling currency.

Related Link: Brent Finds Some Support As Situation In Ukraine Worsens

Finally there is the iShares MSCI Brazil Index (ETF) (NYSE: EWZ), which is down 16 percent during the second half of the year after a disappointing election result that saw the incumbent re-elected.

The long-term trend for EWZ has been ugly as the downtrend has been intact for the most part since 2008. Declining commodity prices, a president that is not business savvy and slowing growth in China all lead to future issues for the country.


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