There are other examples of emerging markets with no fundamental link to commodities. These countries, like Turkey, have positive attributes, risk factors and can be extremely volatile at times. Other examples of low or no-commodity emerging country ETFs include iShares MSCI Israel Capped Investable Index Fund (EIS), iShares MSCI Philippines Investable Market Index Fund (EPHE) and iShares MSCI Taiwan Index Fund (EWT).
During short-term, even severe, downturns like 2008 it is unlikely that the market would discern between commodity-based countries and countries without commodity exposure. But over the course of an entire stock market cycle or even a decade, capturing the attributes of different types of countries should provide better diversification and a better risk-adjusted result. During the last decade just about all emerging markets did well.
Looking ahead, should the run in commodities slow down or reverse some then countries not connected to commodities could perform better over the longer term as perceived consumers of commodities, like those already mentioned, could catch an extra tailwind from lower commodity prices.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
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.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV