Why a frontier markets ETF resisted the emerging markets exodus

WHICH ETF ‘S T BUY NOW In order to do that, and in order to create and destroy ETF shares, those firms have to carry at least some holdings. Basel 3 and the Volcker rule could limit ETF trading partners in the secondary and primary market, and also limit the inventory that the external traders carry. The net impact of this could be less liquidity and wider bid/ask spreads, write the CS analysts. More from Siegenthaler & Co.
Source: http://blogs.barrons.com/focusonfunds/2013/08/21/basel-iii-volcker-rule-could-crimp-etf-business-too-analyst/

From March 2009 through last month, its correlation with the S&P 500 was 0.47 vs. the MSCI Emerging Markets Indexs 0.77 correlation, according to analyst Dennis Hudacheck at IndexUniverse. FMs quite different performance also makes sense when you dive into its unique makeup , as the ETF Professor did last week. Kuwait, Qatar and the United Arab Emirates account for 59% of its weight, although that will change next year as MSCI recently deemed Qatar and the UAE to be emerging rather than frontier markets. With FM, youll also get exposure to countries like Argentina as well as Nigeria, which is a particular favorite of Mark Mobius , whos been adding exposure to frontier markets.
Source: http://blogs.marketwatch.com/thetell/2013/08/21/why-the-frontier-markets-etf-resisted-the-emerging-markets-exodus/

Turkey ETF Tumbles on Surprise Rate Hike – ETF News And Commentary

Yesterday, the shares fell 1.0%, which took the trading range below the 3-day low of $52.54 on volume of 3.9 million shares. Often times after large one-day declines, short-term traders may play for some degree of mean reversion. Vanguard European ETF share prices have moved between a 52-week high of $53.33 and a 52-week low of $43.84 and are now trading 19% above that low price at $52.24 per share. Over the last five market days, the 200-day moving average (MA) has gone up 0.2% while the 50-day MA has advanced 0.2%. SmarTrend recommended that subscribers consider buying shares of Vanguard European ETF on July 17th, 2013 as our proprietary SmarTrend analytics indicated a new Uptrend was in progress when shares hit $50.71. Since that recommendation, shares of Vanguard European ETF have risen 4.1%.
Source: http://www.mysmartrend.com/news-briefs/news-watch/vanguard-european-etf-set-possibly-rebound-after-yesterdays-selloff-102

The YieldShares High Income ETF (NYSE: YYY) Declares First Distribution

Bottom Line Worst of all, the fund’s breakdown suggests that more losses could be in the cards if these kind of trends continue. Roughly half the portfolio is devoted to financials, suggesting that any news about currencies will have a big impact on the fund (see 3 Top Ranked Financial ETFs to Buy Now ). While it is true that there is solid exposure to sectors that might do alright regardless of this environment, such as industrials (14.5%) or materials (7.1%), or relatively low beta sectors like staples and telecoms (combine to make up 20% of assets), it is clear that they aren’t enough to break the overall trend lower. Given this, it might be worth it to stay away from the Turkey ETF for the time being. The ETF currently has a Zacks ETF Rank of 3 or ‘Hold’ so there are plenty of other options out there.
Source: http://www.nasdaq.com/article/turkey-etf-tumbles-on-surprise-rate-hike-etf-news-and-commentary-cm269317

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