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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
IH News Desk
31 Jan 15 13:14:10
$NFLX News Updated Saturday, January 31, 2015 3:11:39 PM $ZA $XHB $CELG $EEM http://t.co/7KFIPHf95R
IH News Desk
31 Jan 15 12:13:08
$VSLR Company Info Updated Saturday, January 31, 2015 2:11:40 PM $EEM $IWM $HYG $IEV http://t.co/8ihU348qBG
Langan Stocks
31 Jan 15 11:52:04
$EEM Last Price Updated Saturday, January 31, 2015 2:03:28 PM $BP $ELTP $FXY $CELG http://t.co/2ygjse9Bm1
Bradley
31 Jan 15 11:31:14
I love this trading girl! $XLF $FXI $BAC $KO $EEM $TLT $EWT $COP $QQQ $VXX $XOP http://t.co/l9JkTCL0PV http://t.co/Usy3TlOlNf
Rosner Stocks
31 Jan 15 11:12:39
$EEM News Updated Saturday, January 31, 2015 1:59:22 PM $FXI $SLTD $FXC $INTC http://t.co/Ni4pCx0QNR
Rosner Stocks
31 Jan 15 10:12:06
$SLTD Financials Updated Saturday, January 31, 2015 12:59:22 PM $HIMX $VGK $EWY $EEM http://t.co/fDp0skwcVx
Rosner Stocks
31 Jan 15 10:12:05
$GENE Investor Opinions Updated Saturday, January 31, 2015 12:59:22 PM $HA $SLW $AMZN $EEM http://t.co/LV6DNml1it
JE$US
31 Jan 15 10:01:10
$EEM Size bearish bet yesterday, may roll an existing position: buyer 17,000 Mar15 $37.5 puts 61¢ ASK http://t.co/pg3AoaxTXr
Langan Stocks
31 Jan 15 09:51:10
$XLE Opinions Updated Saturday, January 31, 2015 12:03:28 PM $TSLA $EEM $FXA $ERY http://t.co/LAp2uaSmEe
Langan Stocks
31 Jan 15 09:51:09
$EEM Short Sales Updated Saturday, January 31, 2015 12:03:28 PM $CSCO $ERY $UNG $TLT http://t.co/ln83iezdZL
PolgarStocks
31 Jan 15 09:11:06
$TSM Investor Opinions Updated Saturday, January 31, 2015 11:07:44 AM $CSCO $BABA $TZA $EEM http://t.co/HykVKyxoPi
Jose Luis Urbina
31 Jan 15 08:44:49
CC1 vs. $EEM https://t.co/JxS3RuPYlY
Unknown
31 Jan 15 08:39:54
RT @StateDave: For those keeping score at home, the bounce in emerging markets appears to have ended. $EEM
danrocks
31 Jan 15 08:13:27
$DUST Starting to get interesting $VXX $IEV $DOW $MU $EEM http://t.co/5XifQoksTJ
Investors Hangout
31 Jan 15 08:11:28
jim50: $EEM Close Date=Jan-30-2015 Open=39.31 High=39.55 http://t.co/AQCD4AkT1i
Investors Hangout
31 Jan 15 08:11:14
jim50: $EEM Close Date=Jan-30-2015 Open=39.31 High=39.55 http://t.co/g5hs8Jti7s
IH News Desk
31 Jan 15 08:09:05
$EEM Company Info Updated Saturday, January 31, 2015 10:12:07 AM $EEM $EEM $EWY $SPXL http://t.co/K1vv5mNptL
David Moadel
31 Jan 15 08:02:45
RT @MikeZaccardi: 5yr annualized returns: $SPY +15.5% $IWM +15.7% $EFA +6.4% $EEM +2.3% $AGG +4.5% $TLT +12.1%
David Moadel
31 Jan 15 08:02:07
RT @MikeZaccardi: 10yr annualized returns: $SPY +7.5% $IWM +7.9% $EFA +4.4% $EEM +7.6% $AGG +4.7% $TLT +8.2%
Polyticks
31 Jan 15 08:02:04
RT @MikeZaccardi: YTD/Jan TR: $SPY -3.0% $IWM -3.3% $EFA +0.6% $EEM -0.7% $AGG +2.1% $TLT +9.8% $GLD +8.7% $USO -12.5% http://t.co/mCSloqW…
jim50
31 Jan 15 08:01:55
$EEM Close Date=Jan-30-2015 Open=39.31 High=39.55 Low=39.02 Close=39.02 Volume=103745300 http://t.co/3JoJyAb5nu
Scott H. Melbrod
31 Jan 15 07:57:01
RT @MikeZaccardi: YTD/Jan TR: $SPY -3.0% $IWM -3.3% $EFA +0.6% $EEM -0.7% $AGG +2.1% $TLT +9.8% $GLD +8.7% $USO -12.5% http://t.co/mCSloqW…
Top ETF Funds
31 Jan 15 07:54:12
What to expect from the stock market this week.. http://t.co/jEXqJCBZRl $EEM #ETF #ETFs #Stocks
Langan Stocks
31 Jan 15 07:49:34
$GOOG Opinions Updated Saturday, January 31, 2015 10:03:47 AM $EEM $LUV $RAX $INVN http://t.co/IabBMoj8EQ
Mike Zaccardi, CMT
31 Jan 15 07:43:40
10yr annualized returns: $SPY +7.5% $IWM +7.9% $EFA +4.4% $EEM +7.6% $AGG +4.7% $TLT +8.2%
Mike Zaccardi, CMT
31 Jan 15 07:41:01
5yr annualized returns: $SPY +15.5% $IWM +15.7% $EFA +6.4% $EEM +2.3% $AGG +4.5% $TLT +12.1%
Panos Dovolos
31 Jan 15 07:33:17
RT @MikeZaccardi: YTD/Jan TR: $SPY -3.0% $IWM -3.3% $EFA +0.6% $EEM -0.7% $AGG +2.1% $TLT +9.8% $GLD +8.7% $USO -12.5% http://t.co/mCSloqW…
GRinvest
31 Jan 15 07:33:10
RT @MikeZaccardi: YTD/Jan TR: $SPY -3.0% $IWM -3.3% $EFA +0.6% $EEM -0.7% $AGG +2.1% $TLT +9.8% $GLD +8.7% $USO -12.5% http://t.co/mCSloqW…
Christian Magoon
31 Jan 15 07:32:51
RT @MikeZaccardi: YTD/Jan TR: $SPY -3.0% $IWM -3.3% $EFA +0.6% $EEM -0.7% $AGG +2.1% $TLT +9.8% $GLD +8.7% $USO -12.5% http://t.co/mCSloqW…
Mike Zaccardi, CMT
31 Jan 15 07:17:21
YTD/Jan TR: $SPY -3.0% $IWM -3.3% $EFA +0.6% $EEM -0.7% $AGG +2.1% $TLT +9.8% $GLD +8.7% $USO -12.5% http://t.co/mCSloqWZ8U
Evelia Meszaros
31 Jan 15 07:16:49
RT @HedgeHouseKwt: #Cross Economies ETFs Jan'15- Euro $FEZ (0.78%) Japan $EWJ +1.68% US $SPY (3.93%) Emerging $EEM (0.61%)
Binary Signals
31 Jan 15 07:15:20
RT @HedgeHouseKwt: #Cross Economies ETFs Jan'15- Euro $FEZ (0.78%) Japan $EWJ +1.68% US $SPY (3.93%) Emerging $EEM (0.61%)
Hedge House Kuwait
31 Jan 15 07:10:50
#Cross Economies ETFs Jan'15- Euro $FEZ (0.78%) Japan $EWJ +1.68% US $SPY (3.93%) Emerging $EEM (0.61%)
Langan Stocks
31 Jan 15 06:48:09
$XLV Investor Opinions Updated Saturday, January 31, 2015 09:03:35 AM $EEM $GLD $SBUX $CSII http://t.co/yzpJ8mB6ir
OptionStream.info
31 Jan 15 06:40:11
$EEM Emerging Market's Long-Term Chart http://t.co/TQE7w0IqkS
moderneconomist.com
31 Jan 15 06:12:29
RT @harmongreg: $SPY Trends and Influencers January 31, 2015 - Dragonfly Capital http://t.co/rpmb57Qjnp $IWM $QQQ $VXX $GLD $USO $ASHR $EEM…
Greg Harmon, CMT
31 Jan 15 06:08:56
$SPY Trends and Influencers January 31, 2015 - Dragonfly Capital http://t.co/rpmb57Qjnp $IWM $QQQ $VXX $GLD $USO $ASHR $EEM $UUP $TLT
PolgarStocks
31 Jan 15 06:06:12
$EEM Stock Forum Updated Saturday, January 31, 2015 08:07:41 AM $UVXY $DDM $FB $TIP http://t.co/ClcQXw1bNU
PolgarStocks
31 Jan 15 06:06:08
$TZA Last Price Updated Saturday, January 31, 2015 08:07:41 AM $KR $TQQQ $UVXY $EEM http://t.co/Vh56mipQwL
Karla✨
31 Jan 15 00:22:45
RT @FtgSuave29: $eem like everybody ungrateful when they ever bought food to ma table
#F➕g KU$H $H!T
31 Jan 15 00:21:37
$eem like everybody ungrateful when they ever bought food to ma table
royfberger
31 Jan 15 00:07:08
Barcelona! Take me back! $XLF $FXI $BAC $KO $EEM $TLT $EWT $COP $QQQ $VXX $XOP http://t.co/JUFJoVNc4s http://t.co/AKkIThnYt4
Jason Olive
30 Jan 15 23:07:17
RT @SeekingAlpha: The Refined ETF Approach To Emerging Markets Consumers http://t.co/765XQTc5cf $ECON $EEM $EMDD $INCO $VWO
FOREX Insight
30 Jan 15 23:03:22
RT @SeekingAlpha: The Refined ETF Approach To Emerging Markets Consumers http://t.co/765XQTc5cf $ECON $EEM $EMDD $INCO $VWO
Alysia Sarkisian
30 Jan 15 23:01:53
RT @SeekingAlpha: The Refined ETF Approach To Emerging Markets Consumers http://t.co/765XQTc5cf $ECON $EEM $EMDD $INCO $VWO
Seeking Alpha
30 Jan 15 22:59:08
The Refined ETF Approach To Emerging Markets Consumers http://t.co/765XQTc5cf $ECON $EEM $EMDD $INCO $VWO
Bradley
30 Jan 15 22:33:09
I love this trading girl! $XLF $FXI $BAC $KO $EEM $TLT $EWT $COP $QQQ $VXX $XOP http://t.co/l9JkTCL0PV http://t.co/nizWoicGLe
PolgarStocks
30 Jan 15 20:56:37
$HI Company Info Updated Friday, January 30, 2015 11:07:41 PM $GE $CHL $EEM $RSX http://t.co/7y0ivk9DnQ
Rosner Stocks
30 Jan 15 19:58:05
$EEM Stock Message Board Updated Friday, January 30, 2015 9:59:25 PM $ZA $ECIG $COH $IBM http://t.co/g1nJLyorns
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30 Jan 15 18:39:11
$DUST News Updated Friday, January 30, 2015 9:03:33 PM $EPI $NBG $EEM $XLK http://t.co/aTCdO8ateH
				
				
By  +Follow October 4, 2013 10:53AM
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