This Day On The Street
Continue to site
ADVERTISEMENT
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 Still Have Steam

NEW YORK ( TheStreet) -- Despite the recent global market selloff, opportunities in emerging markets still remain relatively prevalent.

Most recently, the risk premium on JPMorgan's Emerging-Market Bond Index Global Fund rose by a whopping 14 basis points over U.S. Treasuries and the Bank of New York Mellon Emerging-Markets ADR index dropped over 4%. This descent in emerging-market assets has been primarily driven by sovereign debt problems seen in the Euro Zone and an unstable U.S. employment market.

Other factors that have been causing this selloff include fears that developing nations are overvalued and the likelihood that interest rates in these nations will rise, eventually adding more volatility to an already risk-averse sector. In fact, many risk experts suggest that emerging markets are nearly 50% more volatile than developed markets.

Although a combination of the aforementioned has increased demand for traditional safe havens like the U.S. dollar and Treasuries, the outlook for developing nations remains bright and robust.

First off, it appears that developing nations have softened their dependency on developed nations and are starting to grow off of one another and are heading toward self-sufficiency. Over the past year, gains that have been seen in Asian nations have been primarily driven by the strength and growth of China and not developed nations like the United States or the United Kingdom.

Additionally, emerging markets make up the bulk of industrial production and the world's population. As a whole, emerging markets comprise more than 50% of global GDP using purchasing power parity. The exponential growth of a vibrant middle class in these developing nations is what is keeping the global economy's wheels churning and will likely continue to do so.

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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
CHL $68.58 0.00%
EEM $42.74 0.00%
GMM $69.16 0.00%
ITUB $11.38 0.00%
PZE $7.21 0.00%

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs