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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.


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Results for EEM
Langan Stocks
2 Mar 15 12:18:15
$FSLR Investor Opinions Updated Monday, March 2, 2015 3:03:18 PM $GPRO $CAT $XOM $EEM http://t.co/GlbIX4EVoY
Rosner Stocks
2 Mar 15 12:18:15
$DAL Recent News Updated Monday, March 2, 2015 2:59:25 PM $HD $CHK $AMZN $EEM http://t.co/1pcQ1BavXY
Rosner Stocks
2 Mar 15 12:18:08
$EEM Stock Forum Updated Monday, March 2, 2015 2:59:25 PM $JO $WFC $VTI $ELTP http://t.co/jtH9qVrQ0I
Rosner Stocks
2 Mar 15 11:16:11
$XLF Recent News Updated Monday, March 2, 2015 1:59:25 PM $CVO $EEM $FNMA $PG http://t.co/wBb1w3WHOh
HotKeyTrading
2 Mar 15 11:00:09
Unusual Options Activity: Calls: $TGT $BBRY $AIG $GDX $IWM $SWKS $XLU $V $MRK $EOG $BSX $TIVO $TSN $EWJ $EEM http://t.co/kl3VGOukhn #nasdaq
Market Int Center
2 Mar 15 10:46:44
iShares MSCI Emerging Markets Index $EEM Showing Bullish Technicals With Resistance At $41.12 ( http://t.co/tVwL7HEZfb )
Michael Drury Bodman
2 Mar 15 10:39:48
Commented on: "3 Reasons To Invest In The Vanguard Emerging Markets ETF" http://t.co/97uVWon2w3 $VWO $EEM
iHangout
2 Mar 15 10:28:18
lookn4wins: Xtremepicks Alerts: EEM +0.34% Stock Charts $EEM Electricite et Eaux http://t.co/AVrgpVG9aR
lookn4wins
2 Mar 15 10:26:26
EEM +0.34% Stock Charts $EEM Electricite et Eaux de Madagascar (EPA) Any opinions on EEM? Please reply to this http://t.co/Edvbd1pmK9
Langan Stocks
2 Mar 15 10:15:07
$ECL Stock Price Updated Monday, March 2, 2015 1:03:17 PM $VTI $XOM $WLL $EEM http://t.co/GrrarNtOVZ
Dan Nathan
2 Mar 15 09:58:54
ICYMI: Friday's Notable Options Activity: $BAC, $EEM, $GE, $SNDK, $YUM http://t.co/ojZ0DvSVV5
Bradley
2 Mar 15 09:24:11
I love this trading girl! $XLF $FXI $BAC $KO $EEM $TLT $EWT $COP $QQQ $VXX $XOP http://t.co/l9JkTCtpHR http://t.co/wqTBydSgEg
IH News Desk
2 Mar 15 09:14:03
$USCI Filings Updated Monday, March 2, 2015 11:11:07 AM $FB $GPRO $AA $EEM http://t.co/EsVUkXOabd
Rosner Stocks
2 Mar 15 09:13:45
$VCLT Company Info Updated Monday, March 2, 2015 11:59:27 AM $AMGN $GOLD $EWY $EEM http://t.co/hopSzLkYCf
Rosner Stocks
2 Mar 15 09:13:39
$PLUG Reviews Updated Monday, March 2, 2015 11:59:27 AM $DIS $TASR $EEM $ARIA http://t.co/O6xEhomqME
Wholesale MBA
2 Mar 15 09:12:51
RT @stocknugget: I love this trading girl! $XLF $FXI $BAC $KO $EEM $TLT $EWT $COP $QQQ $VXX $XOP http://t.co/l9JkTCtpHR http://t.co/booCRnw…
Rosner Stocks
2 Mar 15 08:13:11
$EEM Short Sales Updated Monday, March 2, 2015 10:59:27 AM $IFEU $TVIX $TWTR $CURE http://t.co/5GpXFVY6Jc
Brett Fingerhut
2 Mar 15 07:33:06
Commented on: "Equity Volatility - Going Higher" http://t.co/khqWfYNmRl $VXX $EEM $UVXY $TVIX
Seeking Alpha
2 Mar 15 07:12:55
Equity Volatility - Going Higher http://t.co/WZZvvC6xIe $VXX $EEM $UVXY $TVIX $XIV $SVXY $VIXY $ZIV $VXZ $VIXM $CVOL $VIIX $XVZ $XXV
PolgarStocks
2 Mar 15 07:11:12
$EEM Stock Price Updated Monday, March 2, 2015 10:07:08 AM $VTI $ECL $CSCO $T http://t.co/CeWcmFsflj
PolgarStocks
2 Mar 15 07:11:11
$MNKD Stock Forum Updated Monday, March 2, 2015 10:07:08 AM $UGAZ $CHK $HL $EEM http://t.co/O0oEUVj2du
Langan Stocks
2 Mar 15 07:01:17
lookn4wins: EEM +0.34% Stock Charts $EEM Electricite et Eaux http://t.co/UYv4IUax5a
Gambler
2 Mar 15 06:48:31
TOP CALL/PUT CHNGS $EEM, $HYG, $HZNP, $JNK, $JNK, $KRE, $MBLY, $SMH, $SPY, $SWN, $UUP, $YUM, http://t.co/CFLemkrV7R
SogoTrade
2 Mar 15 06:42:32
Just released! SogoTrade’s Morning Call on Today’s Spotlight Stocks $C ,$GOOGL, $EEM, $IJS, $IBM, $GE, $STV... http://t.co/r82bzSPS9G
SogoTrade
2 Mar 15 06:42:13
RT @SogoTradeOption: Just released! SogoTrade’s Morning Call on Today’s Spotlight Stocks $C ,$GOOGL, $EEM, $IJS, $IBM, $GE, $STV $LFC h…
SogoTrade
2 Mar 15 06:42:09
Just released! SogoTrade’s Morning Call on Today’s Spotlight Stocks $C ,$GOOGL, $EEM, $IJS, $IBM, $GE, $STV $LFC http://t.co/X0zS7kqmIu
SogoTrade Options
2 Mar 15 06:41:48
Just released! SogoTrade’s Morning Call on Today’s Spotlight Stocks $C ,$GOOGL, $EEM, $IJS, $IBM, $GE, $STV $LFC http://t.co/RQno2IcZVA
Chris Ciovacco
2 Mar 15 06:31:00
CHINA: $EEM and $FXI open RED after China rate cut. $EEM down 0.27% $FXI down 0.34%
EmergingMarketSkptc
2 Mar 15 06:21:42
Why #EmergingMarkets are increasingly moving to their own rhythms http://t.co/RHoSlaaAa2 $VWO $EEM $IEMG $TEDMX $TEDMX $VEIEX $DFEMX $DEMSX
EmergingMarketSkptc
2 Mar 15 06:15:20
#Indices for measuring #EmergingMarket #PoliticalInstability http://t.co/Xbr0L3CxmV $VWO $EEM $IEMG $EMF $TEI $DEM http://t.co/SLJsb0zblu
charts not opinions
2 Mar 15 06:15:03
@MarkNewtonCMT what's ur take on $EMB? Em bonds dollar denominated should go along with $EEM
Jason Olive
2 Mar 15 06:11:29
RT @SeekingAlpha: http://t.co/QnOwfvB7w6 March Update http://t.co/75qsE0JgXX $LQD $VNQ $TLT $VTI $SHY $RWX $PCY $WIP $EFA $HYG $EEM $TIP $D…
Michael Brown
2 Mar 15 06:08:11
RT @DriehausCapital: $EEM vs 5-year breakeven inflation—Curious that the relationship broke down in the spring of 2014. HS http://t.co/sqd…
Marcos Vinícius
2 Mar 15 06:06:34
RT @SeekingAlpha: http://t.co/QnOwfvB7w6 March Update http://t.co/75qsE0JgXX $LQD $VNQ $TLT $VTI $SHY $RWX $PCY $WIP $EFA $HYG $EEM $TIP $D…
Driehaus
2 Mar 15 06:06:01
$EEM vs 5-year breakeven inflation—Curious that the relationship broke down in the spring of 2014. HS http://t.co/sqdlW1Undd
Portfolio Strategy
2 Mar 15 06:03:54
http://t.co/labDbBJMb9 March Update http://t.co/tkKlNjLE2b $LQD $VNQ $TLT $VTI $SHY $RWX $PCY $WIP $EFA $HYG $EEM $TIP $DBC $GLD
Seeking Alpha
2 Mar 15 06:03:53
http://t.co/QnOwfvB7w6 March Update http://t.co/75qsE0JgXX $LQD $VNQ $TLT $VTI $SHY $RWX $PCY $WIP $EFA $HYG $EEM $TIP $DBC $GLD
PolgarStocks
2 Mar 15 05:08:45
$EEM News Updated Monday, March 2, 2015 07:07:09 AM $HPQ $XOP $UPRO $FSL http://t.co/q2nJcwkagt
PolgarStocks
2 Mar 15 05:08:37
$NBG Stock Message Board Updated Monday, March 2, 2015 07:07:09 AM $GPRO $EEM $FBT $XRT http://t.co/w02khsRoK8
Stephen s
2 Mar 15 04:22:02
RT @IHNewsDesk: $PCL Financials Updated Monday, March 2, 2015 06:11:00 AM $MYEC $DIA $EEM $PLUG http://t.co/pInyfEaUws
Forex First Aids
2 Mar 15 04:08:24
RT @RiskReversal: Friday's Notable Options Activity: $BAC, $EEM, $GE, $SNDK, $YUM http://t.co/ojZ0DvSVV5
IH News Desk
2 Mar 15 04:07:57
$PCL Financials Updated Monday, March 2, 2015 06:11:00 AM $MYEC $DIA $EEM $PLUG http://t.co/pInyfEaUws
Sourcingstocks.com
2 Mar 15 04:03:29
Friday’s Notable Options Activity: $BAC, $EEM, $GE, $SNDK, $YUM http://t.co/Lnp9fEC4zX
FMD Capital
2 Mar 15 04:01:27
RT @seeitmarket: International ETFs Watchlist: Trends & Insights http://t.co/WZ4c4jtu6M by @fabiancapital | $VGK $UUP $RSX $EWZ $INDA $EEM
Dan Nathan
2 Mar 15 03:58:53
Friday's Notable Options Activity: $BAC, $EEM, $GE, $SNDK, $YUM http://t.co/ojZ0DvSVV5
Top ETF Funds
2 Mar 15 03:51:36
China Cuts Interest Rates: Stocks To Benefit?.. http://t.co/PK83cEm9dD $EEM #ETF #ETFs #Stocks
Kevin
2 Mar 15 03:40:15
RT @seeitmarket: International ETFs Watchlist: Trends & Insights http://t.co/WZ4c4jtu6M by @fabiancapital | $VGK $UUP $RSX $EWZ $INDA $EEM
California
2 Mar 15 03:28:51
RT @seeitmarket: International ETFs Watchlist: Trends & Insights http://t.co/WZ4c4jtu6M by @fabiancapital | $VGK $UUP $RSX $EWZ $INDA $EEM
IH News Desk
2 Mar 15 03:06:15
$XOM News Updated Monday, March 2, 2015 05:11:00 AM $GOLD $ELTP $T $EEM http://t.co/O9w9SR0xq2
David (no relation)
2 Mar 15 02:47:26
RT @seeitmarket: International ETFs Watchlist: Trends & Insights http://t.co/WZ4c4jtu6M by @fabiancapital | $VGK $UUP $RSX $EWZ $INDA $EEM
				
				
By  +Follow October 4, 2013 10:53AM
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