Exporter ETFs Unfazed By U.S. Political Drama
NEW YORK ( ETF Expert) -- The S&P 500 traded in a 20-point range on Thursday, and most of that activity was consistent with risk-off, "sell-it-all" fretfulness.
What have investors been fretting? What else? The fiscal stand-off.
Thursday, Senate Majority Leader Harry Reid sent broader indexes 1% lower on statements suggesting a budget deal could not be reached before year's end. Later in the day, Republicans in the House of Representatives agreed to reconvene in Washington D.C. on Sunday, encouraging markets to rally back to the flat line.
In spite of the cliff drama, international and emerging market ETFs with strong export economies held firm. In fact, many materials-rich country funds were flirting with 52-week highs.Here are some export-dependent economy ETFs and their percentage of growth over one and five days. iShares MSCI South Africa (EZA): one-day 2%, five-day 2% iShares MSCI All Peru Capped (EPU): 1.1% 1.0% Market Vectors Russia (RSX): 1%, 1.1% iShares MSCI Turkey (TUR): 0.8%, 1.6% Global X/InterBolsa FTSE Columbia (GXG): 0.8%, 1.2% Guggenheim Frontier Markets (FRN): 0.7%, 0.6% Market Vectors Africa (AFK): 0.7%, -0.1% By comparison the iShares Core S&P 500 (IVV) is off 0.2% for one day and 1.3% for five days. What explains the lust for exotic locales such as Peru, Columbia, Malaysia and South Africa? Many of these emerging/frontier markets are driven by their ability to export to rapidly growing nations like China. The
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
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
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts