Editor's note: This piece originally ran earlier today on our newest Premium service, ETF Profits . Click here for a 14-day trial to this exciting product!
The advent of exchange traded funds has made it easier than ever to access regions of the global marketplace that were traditionally difficult for U.S. investors to target. By using international ETFs, investors can now move well beyond the borders and target specific regions or nations in both developed and emerging markets.
Due to their breakneck growth, emerging nations have proven to be a particularly popular destination for many internationally minded investors. Interest in countries such as China, Brazil and India have helped nurture emerging-market ETFs -- such as the Vanguard Emerging Markets ETF (VWO) and the iShares MSCI Emerging Markets Index Fund (EEM) -- into some of the largest and most sought-after products in the ETF universe.
Amid this sweeping migration of U.S. investors into foreign markets, there have been some regions of the globe that have been ignored or overlooked. Many developing European nations have largely flown under the radar.The blame does not fall solely upon investors. While investors looking for exposure to emerging nations in Latin America and Asia have a wide range of products to choose from, the number of available funds designed to track emerging European countries has been scant. Over the past year, emerging European countries such as Poland have seen promising economic growth despite the debt issues that have plagued other developed nations in the European Union. Poland's February retail sales have surged by 12.2% year over year, the largest gain since July 2008, building on January's 5.8% increase. Hungary is another interesting component of emerging Europe. Although it stood out like a sore thumb during the financial crisis in 2008 due to its large debt, the situation is now more stable. Hungary has a debt level that rivals developed nations such as the U.S. and France as a percentage of GDP, and the high level of foreign-denominated debt was problematic when its currency was falling. Unlike other nations with high debt, however, Hungary isn't running much of a deficit today, or adding to it, and has stabilized its debt ratio. Finally, Russia's stock market has benefited from higher oil prices over the past few months, powering many of its firms to new post-recovery highs. Investors have shifted funds toward oil-exporting nations, especially those with attractive valuations such as Russia, whose market is valued at less than 7x its 12-month forward earnings.
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