This emerging markets ETF list is illuminating in that while many of these same ETFs were the worst performers of 2008, they are now the strongest performers of 2009, especially compared to developed nation stock markets. While historical stock market returns are no guarantee of future results, it is instructive to evaluate which stock markets rebounded strongly in the post-crash environment compared to some that have remained stagnant. I’ve also included major industrialized market economies for comparison. As a reference for the stated return for each country, I’ve listed out a predominant ETF representing the requisite exchange, region, basket of stocks or whatever best represents the particular country’s equity markets. Sorted in order of highest performing first, here are the 2009 stock market returns by country 2009 YTD (UPDATE: See Full-Year 2009 Market Returns):
135% RSX Market Vectors Russia ETF Trust
122% EWZ Ishares Msci Brazil Index Fund
116% TKF Turkish Investment Fund Inc
96% IF Indonesia Fund
96% GXG Global X/InterBolsa FTSE Colombia 20 ETF
96% EWS Singapore Fund
93% HAO Claymore AlphaShares China Small Cap Index
92% INP iPath MSCI India Index ETN
92% INP Ipath Msci India Index Etn
76% IDX Market Vectors Indonesia Index ETF
76% ECH iShares MSCI Chile Investable Mkt Idx
73% EWO Ishares Msci Austria Index Fund
72% EIS iShares MSCI Israel Cap Invest Mkt Index
67% EWD Ishares Msci Sweden Index Fund
66% IRL New Ireland Fund
65% ISR iShares MSCI South Korea Index
65% EWY Ishares Msci-south Korea Index Fund
63% EWT iShares MSCI Taiwan Index
53% EWM iShares MSCI Malaysia Index
49% EWC Ishares Msci Canada Index Fund
48% EZA Ishares Msci South Africa Index Fund
46% EWW iShares MSCI Mexico Investable Mkt Idx
42% EWN Ishares Msci Netherlands Index Fund
40% EWP Spain Fund
39% EWU Ishares Msci United Kingdom Index Fund
30% EWQ Ishares Msci France Index Fund
27% EWI Ishares Msci Italy Index Fund
24% SPY SPDR S&P 500 (ETF)
23% EWL Ishares Msci Switzerland Index Fund
21% EWG Ishares Msci Germany Index Fund
2% EWJ iShares MSCI Chile Investable Mkt Idx
2009 Stock Market Returns, especially in emerging markets, have been very volatile by historical measures following the financial collapse of 2008 and a follow-through into 2009 that resulted in complete capitulation the likes of which hasn’t been seen in decades. Following the March 2009 lows, stocks have rocketed back, many of them leveraged off of a US rally with triple digit returns in just 6 months. For pure speculation/trading near term on further explosive growth in emerging markets, there are even leveraged ETFs for emerging markets, one of which up 190% for the year. But that’s an anomaly to have a leveraged ETF up that much over a long period of time given the decay in value due to daily rebalancing. The only way that occurs is a prolonged upward trend with few or no downward corrections along the way.
Recall that during the March capitulation, investors fled risky assets into Treasuries which in turn strengthened the US Dollar causing the gold-dollar correlation to break down for the first time in recent history. At that time, investors were so nervous that they were actually accepting negative yields on short term maturities just to maintain liquidity. As this was unprecedented and unsustainable in my view, I then utilized a short Treasury ETF which worked out quite well given the recent return to risky assets. Additionally, I still have long term positions in a high yield corporate bond ETF at a 12% yield and locked in an 8.5% tax-free yield in a high yield municipal bond ETF. What we’re seeing now is a prolonged weak dollar trend which has boosted all weak dollar ETFs – see how to play this trend with silver-platinum-gold ETFs and currency ETFs which are much easier to trade than relying on the futures market.
It’s handy to have this massive ETF list at your disposal for future reference Ã¢â‚¬â€œ bookmark this page or subscribe with the SHARE Button below!
(UPDATE: See Full-Year 2009 Market Returns)
No related posts.You're Not Following Darwin's RSS? Check out Why You Have to Subscribe to Darwin's Finance!
If you enjoyed this post, you can get free updates through RSS Feed or via Email whenever a new post is published. Rest assured that you can unsubscribe at any time via the automated system and your information will not be sold, archived or utilized for any other "nefarious" purposes.