A Look at Smaller Emerging Markets

Posted on 11/12/2012

Words that are like music to the ears of relative strength managers (via Equities in Smaller Emerging Markets Soar, FT):

More broadly, the divergence of emerging markets is a sign that investors are increasingly differentiating between countries and even industries in the developing world, rather than lumping disparate countries into one homogenous group, says Ruchir Sharma, head of emerging markets at Morgan Stanley’s asset management arm.

“We’re done with the era where all emerging markets do well,” says Mr Sharma, author of a book, Breakout Nations, on the next clutch of promising developing countries. “We’re finally starting to see a wide divergence of performance of these markets.”

Also noted in the article, is that the BRICs (Brazil, Russia, India, and China) have been among the worst performers in the emerging markets.  As expected, the BRICs are where the Powershares DWA Emerging Markets Technical Leaders ETF (PIE) is most underweight:
PIE 2 Smaller Emerging Markets Soar
See www.powershares.com for more information.  A list of all holdings for the trailing 12 months is available upon request.


This article originally appeared on the Systematic Relative Strength blog.

This article has been tagged in:

Search AllETF.com

Symbol Performance
SILJ 231.164%
SLVP 161.210%
SIL 151.918%
GLDX 142.398%
GDXJ 135.763%
RING 108.029%
PSAU 99.319%
GDX 98.542%
SGDM 96.622%
XME 78.328%
EPU 67.096%
Sector Symbol Performance
Basic Materials SILJ 231.164%
Energy KOL 67.520%
Financial KBWY.TR 28.347%
Technology PSI 25.803%
Utilities FIW 24.776%
Consumer Noncyclical PSCC 22.614%
Industrial AIRR 20.230%
Healthcare IHI 17.962%
Telecommunications VOX 13.622%
Financial Services FREL 10.694%
Consumer Cyclical BJK 9.328%

AllETF Social