Market Overview

ETFs For Locked Up Abroad 2012 Edition (GULF, JSC, THD)


ETFs For Locked Up Abroad 2012 Edition (GULF, JSC, THD)

The ETF Professor is not the biggest supporter of reality. His roommate/girlfriend has put him through untold amounts of torture with the "Real Housewives of Wherever," shows involving the Kardashians and that one about realtors in New York.

However, there remains one reality show that the ETF Professor will always make time: Nat Geo's "Locked Up Abroad." The sixth season of the wildly popular series debuts on April 25 and inspired by last year's "Locked Up Abroad" ETF list we went back to the drawing board for more of the same this year.

Yes, almost every episode of the show involves a naïve Westerner swallowing or body-packing drugs trying in an effort to get them out of some unsavory country and then getting caught. It still makes for good entertainment and with the right list (this one), profits can be had.

Here is the 2012 edition of ETFs for "Locked Up Abroad."

Global X FTSE Argentina 20 ETF (NYSE: ARGT) The Global X FTSE Argentina 20 ETF has certainly been in the news lately. That's not a good thing as Argentina's nationalization move on YPF S.A. (NYSE: YPF), ARGT's fourth-largest holding, has renewed concerns about the political risks of doing business in Latin America.

Well, if Argentina can basically steal a company from another country, imagine what the country can do to drug runners. We'll find out on LUA this season. Regarding ARGT, the ETFs isn't liquid, cannot be shorted and has no options trading on it, so it must be traded from the long side. That's only worth the risk if support firms in the $9-$9.30 area.

SPDR Russell/Nomura Small Cap Japan ETF (NYSE: JSC) For anyone that is remotely familiar with the legal system in Japan, this is one of the worst countries in the world to be caught trying to smuggle drugs. Japan also has some of the worst economic problems in the developed world with an aging population and suffocating debt burden among them.

Waiting for Japanese equities to rebound in earnest has turned into something of a waiting for Godot moment, but if that happens and the yen weakens, JSC is one of the Japan ETFs that could lead the charge. Plus, it has the lowest expense ratio among Japan small-cap funds.

WisdomTree Middle East Dividend ETF (Nasdaq: GULF) There will be a couple of LUA episodes this season that involve someone being caught doing something nefarious and stupid in a Middle Eastern country, so the WisdomTree Middle East Dividend ETF makes the list. Qatar, Kuwait and United Arab Emirates account for over 82% of this fund's weight and over 93% of the sector weight goes to three groups – financials, telecom and industrials. GULF's allure comes from a dividend yield of almost 6%.

iShares MSCI Thailand Investable Market Index Fund (NYSE: THD) It doesn't look like Thailand is slated to be featured in the sixth season of LUA, but the country has served as the backdrop for several memorable episodes in the past. The "T" in the in the CAPPT acronym has been a stellar performer for the better part of six months, but THD has slid almost 3.5% in the past month.

That could be a buying opportunity given Thailand's levels of foreign investment, relative political stability and its gateway status to Southeast Asian frontier markets.

For more on emerging markets ETFs, please click HERE.

Posted-In: Long Ideas News Short Ideas Specialty ETFs Emerging Market ETFs Global Intraday Update Markets Best of Benzinga


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