The Fate Of Emerging Market ETFs In 2012

December 12, 2011


With hopes of stabilization in Europe, emerging market ETFs are likely to rebound in 2012, as inflation rates in emerging countries begin to slow down, according to an article on

Gary Gordon, contributor to the article on ETF Expert, came to this conclusion by analyzing the following variables:

  • Fiscal and Monetary Policy: Emerging market countries now are cutting interest rates and reworking policies to focus on stimulating economic growth.
  • China’s Trading Partners: China’s trading partners are mostly thought of as resource rich, and focused on exporting energy and materials. Gordon mentions the iShares MSCI Taiwan Index Fund (NYSEArca: EWT) as a prime example of a strong trading partner outside of the norm, with 50 percent of EWT comprising technology.
  • Trailing Price-Earnings Ratios: Gordon refers to previous instances when China’s P/E was below 10, and how purchasing at this level led to rewarding returns. Currently, Brazil, China and Taiwan each have P/Es below 10, Gordon noted.


For Gordon’s full perspective, visit


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