This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Russia Boosts Emerging Market ETFs

Stocks in this article: EEM VWO GUR

For investors with a longer time horizon, the underperformance of emerging market equity due to Europe's problems can offer opportunities to gain exposure to emerging markets for the mid- to long-term.

This is especially true because many emerging markets do not have the same government debt problems gripping Europe. Because they are being pulled down by the same market concerns, but going forward in the mid to long term, they will not be held down by the same negative economic side-effects of debt problems.

In the case of emerging and Eastern Europe, the proximity of Hungary has led to concerns for their markets. But after Friday's panic, the government worked over the weekend to come up with solutions and Hungary can avoid default by making budget cuts.

If Eastern Europe ETFs are oversold, however, the play here is not GUR or ESR, but Market Vectors Poland (PLND) and iShares MSCI Austria (EWO). These two ETFs have the heftiest exposure to any crisis in Eastern Europe and it showed on Friday.

GUR slid 5.1% on the day, ESR fell 5.7%, RSX fell 5.4%, VWO fell 3.3%, but EWO lost 7.5% and PLND tumbled 8.3%. The latter two funds were victims of weaker currencies, as the euro and Polish zloty slid sharply.

EWO will decline whenever Eastern European debt becomes a concern because the Austrian banking system has the greatest exposure to debt from the region. Last week, the nation replaced the Spain and Italy ETFs as the biggest loser among eurozone country funds. While EWO might be a solid play if the euro rebounds, a stronger play would be the Poland ETF.

2 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs