NEW YORK (ETF Expert) -- If anyone would have told me in 2011 that the "China neighbor" theme would struggle for as long as it has, I would have dismissed the argument outright. I had lived in places like Taiwan, Thailand and Hong Kong. I had visited a stock exchange in the Philippines, insurance institutions in Singapore as well as a textile facility in Indonesia. I had experienced the indomitable work ethic throughout Southeast Asia firsthand.
Simply put, it would have been impossible for me to accept a notion that a slowdown in China might reverberate for multiple years across the region.
Fortunately, I invest with my head rather than my heart. The best example that I have is my largest 2010 holding, iShares MSCI Malaysia (EWM). Not only did this exchange-traded fund triple the performance of the S&P 500, but it did so with less beta risk.
I expressed enormous enthusiasm for Malaysia throughout 2009 and 2010. In August 2009, I highlighted Malaysia's #1 ranking in the world for access to credit in Malaysia ETF Offers A Different Slice of the Emerging Market Pie. In November 2009, I discussed why emerging market investors could improve their diversification and performance by steering away from the natural resources powerhouses (e.g., Russia, Brazil, etc.) in Malaysia ETF: Don't Overlook This Niche Player. Throughout 2010, I pointed to the attractive valuation, technical uptrend, relative strength, low beta risk and dividend yield of EWM.
For the better part of two years EWM remained one of my top choices for clients. Moreover, as a strong advocate of investing in regional partners to take advantage of China's growth as well as Japan's economic needs, I believed strongly in Malaysia's positioning.
Select the service that is right for you!COMPARE ALL SERVICES
- $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
- 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 + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV