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Emerging Market ETFs Bounce on Government Shutdown

By  +Follow October 4, 2013 10:53AM
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Emerging market ETFs were boosted Thursday as the shutdown of the American government entered its fourth day. While political turmoil usually sends investors fleeing from emerging markets, the belief that the shutdown and pending debt-ceiling fight will keep the Federal Reserve’s bond-buying program intact and at current levels appears to have dissuaded fears and helped boost stocks in Indonesia, the Philippines, and India.

Today’s gains stretched across the board for various emerging market ETFs. The iShares MSCI Emerging Markets Indx (EEM) gained over 1 percent, the Vanguard FTSE Emerging Markets ETF (VWO) was up just over 1.15 percent, the WisdomTree India Earnings Fund ($EPI) gained over 1.5 percent, the PowerShares India Portfolio ($PIN) rose just over 1.5 percent, iShares MSCI Malaysia Index Fund (EWM) leapt almost 2.5 percent, and the iShares MSCI Indonesia Investable Market Index Fund (EIDO) was up just under 2.5 percent.

Emerging Markets Bolstered by Government Uncertainty

While it runs counter to traditional thinking about emerging market equities, the turmoil in Washington appears to be boosting funds tracking these stocks. It’s something that played out last month when currencies in emerging markets plunged on speculation that the Fed would taper the bond buying program, strengthening the dollar and drying up available capital. Now, with the bond-buying program continuing, many see an increased appetite for risk that will push investors into emerging market stocks with the chance for higher yields.

The Financial Times quoted a Societe Generale ($SCGLY) note to its clients as saying: “To the extent that it may affect Fed policy expectations this [the shutdown] may actually feed through as a risk-on signal for global emerging markets (GEM). In addition, this may lead to a downgrade of U.S. macro data in terms of market significance, which helps support the bottom-up approach to GEM while undermining the U.S.-centric top-down theme.”

Emerging Markets Coming Off Strong September

The news that the predicted taper in quantitative easing would be delayed at least a month combined with news of better-than-expected recoveries for economies in Europe, Japan, and the United States made for a rosy September for emerging market ETFs. Since September 1, the iShares MSCI Emerging Markets Indx is up almost 10.5 percent.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer


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Results for EEM
David Cox, CMT, CFA
31 Aug 15 06:15:05
#emerging #stocks 1M, 3M, 6M % returns - ugly and negative slopes #trend $EEM http://t.co/GcMQPtxZH6
XATS-UK
31 Aug 15 06:04:22
RT #EmergingMarkets #ETF $EEM bouncing from multi-year Fibonacci support. Further gains to remain limited. http://t.co/vmufIMmXVs
DailyStockPicks
31 Aug 15 05:51:52
$ANFI huge bounce play like $ACI up 18% on Friday. 100%+ upside potential $EEM $VWO $UGAZ investors read http://t.co/L1jwUV6Bag
.
31 Aug 15 05:49:57
RT @MarkNewtonCMT: S&P came within 2 ticks of testing earlier highs before pulling back 8- There's that Volatility we've all come to know …
Rosner Stocks
31 Aug 15 05:46:10
TLT iShares Barclays 20+ Year Treasury Bond Fund Message Board Posts http://t.co/fFz2qxFVBn $TLT $LOCK $EEM $AVXL #TLT #stockmarket…
Stock Forums
31 Aug 15 05:46:08
TLT iShares Barclays 20+ Year Treasury Bond Fund Message Board Posts http://t.co/kqw5NHpami $TLT $LOCK $EEM $AVXL #TLT #stockmarket…
Stock Forums
31 Aug 15 05:40:34
LVGI Limitless Venture Group Inc. Filings http://t.co/AVui6WiXQz $LVGI $EA $EEM $QLD #LVGI #stock #finance
Investors Hangout
31 Aug 15 05:37:07
FXY Currency Shares Japanese Yen Trust Bid http://t.co/AhW6b6QJK4 $FXY $PYPL $EEM $FXY #FXY #invest #invest
nasdaqfan
31 Aug 15 05:35:03
EEM iShares MSCI Emerging Markets Dividend http://t.co/cDAIrQVvgA $EEM $ETAK $BRK/B $KO #EEM #stock #finance
jim50
31 Aug 15 05:35:03
DNO United States Short Oil Fund Day High http://t.co/YRnOUX5lXx $DNO $EEM $DNO $INMG #DNO #tradeideas #nasdaq
Investors Hangout
31 Aug 15 05:35:03
EDZ Direxion Daily Emerging Markets Bear 3x Shares Tick http://t.co/YqvWEZH2Hx $EDZ $AMZN $EEM $SPXS #EDZ #tradeideas #tradeideas
ETF Trends
31 Aug 15 05:31:05
Ideal Time for Corporate Bonds, Some Emerging Markets Strength, IPO ETF Goes to Europe $LQD $FPX $EPI $EEM $RSX $SLV http://t.co/pwxIgnfCSQ
Andrew
31 Aug 15 05:29:50
RT @clayton_dd: RMRK Rimrock Gold Corp. Bid Size http://t.co/smXnaLWc19 $RMRK $EEM $RUSL $ELED #RMRK #finance #stock
Stock Market Picks
31 Aug 15 05:04:52
$AGG $AMLP $DBC $UGAZ $DGAZ $DUST $EDZ $EEM up to 1300% since 2010, easy to follow, only 6 open positions at a time. http://t.co/Vjj8yzTD9F
Lucky Jimmy
31 Aug 15 04:51:04
XLU Utilities Select Sector SPDR Company Info http://t.co/ohQushFcX8 $XLU $EEM $NKE $SNSS #XLU #tradeideas #stockmarket
IH News Desk
31 Aug 15 04:50:33
V Visa Inc. Day High http://t.co/Ldqzta61OD $V $EEM $TQQQ $FV #V #finance #nasdaq
nasdaqfan
31 Aug 15 04:49:11
UUP PowerShares DB US Dollar Index Bullish Fund Filings http://t.co/Ket3yCQEnC $UUP $NEAR $EEM $UUP #UUP #nasdaq #investing
lookn4wins
31 Aug 15 04:41:04
HQY HealthEquity, Inc. Filings http://t.co/pSYBI8eofN $HQY $EEM $UNG $BABA #HQY #tradeideas #stock
Emylers
31 Aug 15 04:37:12
EEM iShares MSCI Emerging Markets Ask Size http://t.co/5f9sUdd67c $EEM $SFEGQ $TTI $KOL #EEM #pennystocks #share
clayton
31 Aug 15 04:37:08
DRI Darden Restaurants, Inc. Current Price http://t.co/2HvJa1TaAk $DRI $UVXY $EEM $JNUG #DRI #investing #invest
Bad * Charts
31 Aug 15 03:59:14
Breakdown if monthly close under 35. Target 25. Check Jan 26 post & chart update. http://t.co/KaxRxn9tZ8 $EEM $EEMV http://t.co/NyUg4pVIih
jim50
31 Aug 15 03:49:33
XIU.TO VelocityShares Daily Inverse VIX Short Term ETN Filings http://t.co/IkuqubBboI $XIU.TO $LVS $ITB $EEM #XIU.TO #stock #finance
Emylers
31 Aug 15 03:49:23
XLF Industrials Select Sector SPDR Current Price http://t.co/gddKZlXTDR $XLF $EEM $XLB $XLK #XLF #finance #nasdaq
lookn4wins
31 Aug 15 03:47:35
VNR Valeant Pharmaceuticals Intl, Inc. Quotes http://t.co/IXpYjDFAN6 $VNR $JPM $EEM $AAXJ #VNR #stockmarket #invest
DennyT
31 Aug 15 03:47:35
VNR Vanguard Natural Resources, LLC Ask http://t.co/tfmHrP4MQW $VNR $EEM $CM.TO $EXPE #VNR #invest #stock
clayton
31 Aug 15 03:46:35
UPRO ProShares UltraPro S&P 500 Day High http://t.co/Miqtj7XD3Y $UPRO $GS $BRSS $EEM #UPRO #share #stockmarket
Lucky Jimmy
31 Aug 15 03:46:10
SLV iShares Silver Trust Summary http://t.co/F5XbY6pHC0 $SLV $IHSI $SCO $EEM #SLV #stockmarket #pennystocks
IH NASDAQ OMX
31 Aug 15 03:41:41
LNKD LinkedIn Corp. Quotes http://t.co/2zmijELEd1 $LNKD $SIRGQ $EEM $UPRO #LNKD #nasdaq #stockmarket
IH News Desk
31 Aug 15 03:41:37
ICICIBANK.IN ICICI Bank Ltd. Investor Opinions http://t.co/Ck3PSUVdQR $ICICIBANK.IN $DGAZ $EEM $TWTR #ICICIBANK.IN #stocks #investing
clayton
31 Aug 15 03:41:36
IJR Intel Corp. Investor Opinions http://t.co/xSrnpNIddz $IJR $AVT $JNJ $EEM #IJR #investing #stocks
Investors Hangout
31 Aug 15 03:39:35
FCX FireEye Inc. Exchange http://t.co/KYztRNnZku $FCX $EEM $XLP $QRVO #FCX #investing #invest
clayton
31 Aug 15 03:39:35
EEM iShares MSCI Emerging Markets Volume http://t.co/N2L22ae4JY $EEM $SMH $FTK $SDS #EEM #stocks #share
danrocks
31 Aug 15 03:38:34
EEM iShares MSCI Emerging Markets 52Wk High http://t.co/ob4rJCeLnh $EEM $ACI $ARIA $IBB #EEM #investing #share
Investors Hangout
31 Aug 15 03:38:34
EEM iShares MSCI Emerging Markets Last Trade http://t.co/WCwfD8DEyD $EEM $SPXU $DRREDDY.IN $FXB #EEM #share #share
Rosner Stocks
31 Aug 15 03:38:34
EEM iShares MSCI Emerging Markets Bid Size http://t.co/rSP0ilClFP $EEM $AAU $FBHS $QID #EEM #stock #pennystocks
Jake13
31 Aug 15 03:38:33
EEM iShares MSCI Emerging Markets Quotes http://t.co/d9udsth3Ih $EEM $ABBV $COH $MYEC #EEM #stocks #share
lookn4wins
31 Aug 15 03:38:33
EEM iShares MSCI Emerging Markets Ask http://t.co/eyeeoEni4Q $EEM $AMAT $LXRX $TLT #EEM #investing #share
Investors Hangout
31 Aug 15 03:38:10
EEM iShares MSCI Emerging Markets Dividend http://t.co/LN6kC5CMXe $EEM $ABG $QTMM $XLP #EEM #invest #pennystocks
leahanne
31 Aug 15 03:38:07
EPAM EPAM Systems, Inc. Financials http://t.co/9qZL6GnoSl $EPAM $EEM $UGAZ $SBUX #EPAM #stockmarket #invest
PolgarStocks
31 Aug 15 03:38:06
EEM iShares MSCI Emerging Markets Day Low http://t.co/qznjNbpp48 $EEM $AMAT $FIT $CPE #EEM #share #finance
clayton
31 Aug 15 03:38:05
EEM iShares MSCI Emerging Markets % Change http://t.co/WvEG3k8u0P $EEM $RPV $ERY $AAPL #EEM #stock #tradeideas
Rosner Stocks
31 Aug 15 03:38:05
EEM iShares MSCI Emerging Markets Financials http://t.co/VLeEyefftJ $EEM $XOM $OWOO $ATI #EEM #pennystocks #stocks
lookn4wins
31 Aug 15 03:38:04
EEM iShares MSCI Emerging Markets Tick http://t.co/eKefqfqtrK $EEM $CVC $CNX $AMD #EEM #pennystocks #tradeideas
Rosner Stocks
31 Aug 15 03:38:04
EEM iShares MSCI Emerging Markets Company Info http://t.co/5ruj3i3Qaj $EEM $DRN $EFA $CEATLTD.IN #EEM #tradeideas #stocks
PolgarStocks
31 Aug 15 03:37:38
COF Capital One Fncl Corp. Short Sales http://t.co/AtsAm00XSN $COF $CYBX $AMZN $EEM #COF #nasdaq #investingCOKE Coca-Cola Bottling Co.…
Investors Hangout
31 Aug 15 03:37:37
COF Capital One Fncl Corp. Short Sales http://t.co/wQ67Gw8f5D $COF $CYBX $AMZN $EEM #COF #nasdaq #investingCOKE Coca-Cola Bottling Co.…
PolgarStocks
31 Aug 15 03:37:37
COF Capital One Fncl Corp. Short Sales http://t.co/9T4ASLQ356 $COF $CYBX $AMZN $EEM #COF #nasdaq #investingCOKE Coca-Cola Bottling Co.…
Investors Hangout
31 Aug 15 03:37:36
COF Capital One Fncl Corp. Short Sales http://t.co/cND0nzHkU6 $COF $CYBX $AMZN $EEM #COF #nasdaq #investingCOKE Coca-Cola Bottling Co.…
Rosner Stocks
31 Aug 15 03:37:36
COF Capital One Fncl Corp. Short Sales http://t.co/eeg2tEzSJl $COF $CYBX $AMZN $EEM #COF #nasdaq #investingCOKE Coca-Cola Bottling Co.…
clayton
31 Aug 15 03:37:36
COF Capital One Fncl Corp. Short Sales http://t.co/G1OD66BADc $COF $CYBX $AMZN $EEM #COF #nasdaq #investingCOKE Coca-Cola Bottling Co.…
				
				
By  +Follow October 4, 2013 10:53AM
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