This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Emerging-Market ETFs Are Game-Changers

Broad-based funds have contributed greatly to investors' poor performance in this bear market, as most big indexes have grown disproportionately large with financial holdings, which have become the worst place to be. (Tech stocks were the culprit in the previous bear market.)

Just as people learned about the importance of emerging-market exposure at the beginning of this decade, more will want to invest in individual sectors outside the developed world.

Investors who build portfolios sector by sector with ETFs just got new tools from Emerging Global Shares. EGS Emerging Markets Energy Fund (EEO) and EGS Emerging Markets Metals & Mining Fund (EMT) are the first to be sold, with 10 others coming soon.

Emerging-market funds like iShares MSCI Emerging Markets Index Fund (EEM) don't allow for precision in constructing portfolios. Investors ought to be able to pick industries in emerging markets, enabling them to overweight consumer staples, health care and utilities during bear markets and transition to energy and materials when economies rebound.

The funds each own 30 stocks screened for float-adjusted market capitalization, revenue and profit. The holdings are liquid, allowing the funds to operate smoothly. This means the heaviest stocks aren't obscure.

The energy fund is heaviest in Russia, at 36%; India, 18%; China, 16%; and Brazil, 9.5%. Poland, Hungary and Colombia also are represented. The largest individual stocks are India's Reliance Industries, at 11.8%; Gazprom (OGZPY), 9.6%; Petrobras (PBR - Get Report), 9.5%; PetroChina (PTR - Get Report), 9.2%; and Lukoil (LUKOY), 8.8%.

The metals and mining fund is heaviest in South Africa, at 30%; Brazil, 23%; China, 16%; and Russia, 13%. Smaller weightings include Indonesia and Turkey. The two largest holdings are from mining-rich South Africa: Impala Platinum, 9.7%; and AngloGold Ashanti (AU), at 9.54%.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
EEM $33.35 -2.80%
OGZPY $4.98 -1.58%
LUKOY $40.75 -3.50%
PTR $70.97 -2.40%
PBR $7.15 -5.70%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.43 -18.00 -0.86%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs