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

Russia Boosts Emerging Market ETFs

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

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
GUR $24.64 -3.30%
VWO $33.32 -3.50%
EEM $32.63 -3.60%
PLND $16.07 -2.07%
EWO $15.25 -1.90%

Markets

Chart of I:DJI
DOW 16,122.22 -405.81 -2.46%
S&P 500 1,924.16 -48.02 -2.43%
NASDAQ 4,667.5750 -108.9330 -2.28%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs