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Market Overview

3 Country ETFs Hitting Lows

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Of the 24 developed country stock markets around the globe, the U.S. is trailing all but two heading into this week. The performance has not improved with the S&P 500 hitting a new one-month low on Tuesday.

While the S&P 500 is now in negative territory for the year, the index is holding up much better than some of its emerging market peers that have been decimated by a rise in the U.S. dollar and various concerns.

The three worst-performing country-specific ETFs in 2015 are all emerging markets, with two residing in South America. The third, Turkey, is dealing with currency issues that have weighed heavily on the ETF traded in the U.S.

Global X MSCI Colombia

The Global X MSCI Colombia ETF (NYSE: GXG) is made up of 28 companies based in Colombia.

The top holdings include:

  • Bancolombia SA (ADR) (NYSE: CIB) with a 14 percent holding
  • Ecopetrol S.A. ADR (NYSE: EC) at 8.8 percent
  • Grupo De Inversiones Suramericana SA (OTC: GIVPY) coming in at 7.1 percent

GXG is down 39 percent over the last 12 months, down 49 percent over the last six months and down 21 percent in 2015. The heavy exposure to the financials and energy stocks have weighed on the performance of the ETF and with several stocks in the portfolio hitting multi-year lows the downside risk remains.

The ETF has an expense ratio of 0.61 percent.

iShares MSCI Turkey ETF

The Ishares Msci Turkey Inv Market Index Fd (NYSE: TUR) provides exposure to 80 Turkish companies across nine sectors. The financials make up 46 percent and the industrials come in at 14 percent, making the two sectors the most heavily weighted.

The top holdings include:

  • Turkiye Garanti Bankasi A.S.(ADR) (OTC: TKGZY) at 11.4 percent
  • Akbank T.A.S. (ADR) (OTC: AKBTY) coming in at 7.9 percent
  • Turkcell Iletisim Hizmetleri A.S. (ADR) (NYSE: TKC) making up 6.5 percent of the ETF

Over the last 12 months the ETF is up 3 percent; however, the ETF is down 19 percent over the last six months and down 19 percent this year.

The ETF is closing in on major support at the $40 area and if the value of the Lira continues to collapse it could send TUR to new lows. The ETF has an expense ratio of 0.62 percent.

Related Link: Starwood Accelerates Expansion In Latin America & Caribbean Regions

iShares MSCI Brazil Mid-Cap

The iShares MSCI Brazil Index (ETF) (NYSE: EWZ) tracks 72 Brazilian companies across ten sectors. With financials at 33 percent and consumer staples at 20 percent making up over half of the portfolio.

The top three holdings include:

  • Itau Unibanco Holding SA (ADR) (NYSE: ITUB) with a 10.1 percent holding
  • Ambev SA (ADR) (NYSE: ABEV) making up 9.1 percent
  • Banco Bradesco SA (ADR) (NYSE: BBD) coming in at 7.7 percent

EWZ is down 22 percent over the last 12 months, down 38 percent over the last six months, and down 16 percent in 2015. The ETF has an expense ratio of 0.62 percent.

 

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