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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
Chasing Stars
22 Oct 14 07:52:32
$XLY Bid Size Click Here: http://t.co/hx6r9JlyvK Also See: $EEM $MCP $HAL $IYT ~
Investors Hangout
22 Oct 14 07:48:43
$XLY P/E Ratio Click Here: http://t.co/KROgsoavKo Also See: $EEM $RCH.TO $GDX $EWJ ~
Deniz Kahraman
22 Oct 14 07:19:52
$MXWO - $EEM farkı gelişmiş piyasalar lehine devam ediyor. http://t.co/mlpQ8LAc70
Investors Hangout
22 Oct 14 06:43:34
danrocks: $EEM Starting to get interesting $YGE $FNMA $CSIQ http://t.co/u5zD570vf4
Investors Hangout
22 Oct 14 06:43:12
danrocks: $EEM Starting to get interesting $YGE $FNMA $CSIQ http://t.co/XJ5yKvO5cs
danrocks
22 Oct 14 06:39:30
$EEM Starting to get interesting $YGE $FNMA $CSIQ $JDST $AGIO http://t.co/KOG1JHkXFc
BetterBeta Trading
22 Oct 14 06:20:14
$EEM as a risk appetite gauge - rolled over before the recent $SPY pullback http://t.co/NQFASOywh0
Rosner Stocks
22 Oct 14 06:04:59
$WWAG Last Trade Click Here: http://t.co/lxceAqZP19 Also See: $HD $EEM $UGA $FL ~
Robin Murray MD CFII
22 Oct 14 02:30:16
#Markets #Jonesing for a new #FIX of #QE #Hopium $EWJ $FEU $SPY $DIA $FXI $EEM $EWZ #ETF http://t.co/ffZIi2iAjS
JensKlatt
22 Oct 14 00:31:15
RT @JohnKicklighter: For the biggest SPX rally in 12 mths, not much 'risk on' sentiment for the $EEM Emerging Mkts ETF: http://t.co/1JPC6x…
Ro Patel
21 Oct 14 22:33:32
Wk ended Oct 15 Equity #ETF flows: $SPY +$2.7B, $IWM +$2.3B, $XLE $1B vs $QQQ -$600M, $XLK -$655M, $EEM -$915M
Chasing Stars
21 Oct 14 21:45:26
$SH Day High Click Here: http://t.co/LyeI1U664a Also See: $JNJ $EEM $GNCP $PSID ~
G_Schwarzenbach
21 Oct 14 21:14:26
RT @sobata416: RT @zerohedge: The Hedge Fund Industry's 25 Favorite ETFs: *lol @ $VWO & $EEM cc @valuewalk @bespokeinvest http://t.co/IXR…
Fritz the cat
21 Oct 14 19:55:55
RT @sobata416: RT @zerohedge: The Hedge Fund Industry's 25 Favorite ETFs: *lol @ $VWO & $EEM cc @valuewalk @bespokeinvest http://t.co/IXR…
$hane Obata
21 Oct 14 19:18:16
RT @zerohedge: The Hedge Fund Industry's 25 Favorite ETFs: *lol @ $VWO & $EEM cc @valuewalk @bespokeinvest http://t.co/IXRFtoe9Qt
Investors Hangout
21 Oct 14 19:09:25
$PFE Ex-Div Date Click Here: http://t.co/1krCmqgqCh Also See: $REGN $EEM $XOM $INCC ~
Me_Sean
21 Oct 14 18:00:10
Lower oil prices is a pos for Chile. 20% of their inflation is tied to oil/energy. Neg for Colombia 50% of index is hurt. $spy $xle $EEM
GOOD LUCK (BYRD)
21 Oct 14 17:32:09
RT @yunglaflare7: Only nigga$ I $eem to have is reef Eddie and byrd #freemybrother @AIN_DID_NUN
$EEM
21 Oct 14 16:44:35
New track $eem ft lildell x on go comin soon
Jeff Quiggle
21 Oct 14 15:41:31
$MACRO > $TLT $GLD $JNK $FXI $IWM $QQQ $SPY $EEM $FEZ $USO Yesterday > $TLT $GLD $FXI $JNK $EEM $IWM $QQQ $SPY $USO $FEZ
ETF Trends
21 Oct 14 15:10:48
Expect More for #Volatility for the Big #Brazil ETF http://t.co/xlenzVBGcG #ETFs #emergingmarkets $EWZ $EEM $JPM
Dimitra DeFotis
21 Oct 14 15:09:06
Russia To Ukraine: We Want Gas Payments, Not Hot Air http://t.co/WLra5czLPu via @barronsonline $OGZPY $EEM
Tom Lydon
21 Oct 14 15:05:40
Expect More for #Volatility for the Big #Brazil ETF http://t.co/Gkwe1dZle6 #ETFs #emergingmarkets $EWZ $EEM $JPM
Investors Hangout
21 Oct 14 14:57:37
$KORS Change Click Here: http://t.co/ZaEXw1zLRv Also See: $BBBY $EEM $GE $NVDA ~
ShortStockVolume.com
21 Oct 14 14:31:45
Top Shorted Stocks 10/21/14... 20. $EEM 70.70% 21. $PFF 70.34% 22. $JNS 69.23% 23. $USO 69.16% 24. $KRE 69.11% 25. $VEA 68.74%
ShortStockVolume.com
21 Oct 14 14:31:43
Top Shorted Stocks 10/21/14... 19. $SYMC 73.34% 20. $EEM 70.70% 21. $PFF 70.34%... http://t.co/Iv65vVzyhc
OTPicks.com
21 Oct 14 14:06:59
http://t.co/hjgLwIcNgz lookn4wins: $EEM Candlesticks $EEM Most recent stock chart: lookn4wins http://t.co/iTj75TWzr4 http://t.co/hjgLwIcNgz
OTPicks.com
21 Oct 14 14:06:57
http://t.co/QkCFZ8H3V8 lookn4wins: $EEM Candlesticks $EEM Most recent stock chart: lookn4wins http://t.co/ovpCAvuaFX http://t.co/QkCFZ8H3V8
New IT Risk Services
21 Oct 14 14:04:06
RT @JohnKicklighter: For the biggest SPX rally in 12 mths, not much 'risk on' sentiment for the $EEM Emerging Mkts ETF: http://t.co/1JPC6x…
Christoph Canne
21 Oct 14 13:59:04
RT @JohnKicklighter: For the biggest SPX rally in 12 mths, not much 'risk on' sentiment for the $EEM Emerging Mkts ETF: http://t.co/1JPC6x…
Francesco Metalli
21 Oct 14 13:47:05
RT @JohnKicklighter: For the biggest SPX rally in 12 mths, not much 'risk on' sentiment for the $EEM Emerging Mkts ETF: http://t.co/1JPC6x…
Greg Harmon, CMT
21 Oct 14 13:45:20
$EEM inching higher, 42.54/43/44 next resistance, support 41/40.4/39.25 http://t.co/kPmC7P0m9u
John Kicklighter
21 Oct 14 13:34:30
For the biggest SPX rally in 12 mths, not much 'risk on' sentiment for the $EEM Emerging Mkts ETF: http://t.co/1JPC6xR8LK
Me_Sean
21 Oct 14 13:30:06
Positive year over year revenue figures keep coming in. This is a positive. $spy $dia $qqq $tlt $yhoo $BRCM $IRBT $eem
Arvind Nagendra
21 Oct 14 12:57:57
@KeithMcCullough Would you short $EEM or $EPI ?
Chasing Stars
21 Oct 14 12:50:33
$ISNS Stock Forum Click Here: http://t.co/qtwEYPrMpG Also See: $IYT $MMM $EEM $RSX ~
Sheldon McIntyre
21 Oct 14 11:04:42
It has paid to be a good stockpicker in 2014. $DGT $SPX $EEM $IEV $FXI $EWJ $ASEA http://t.co/LqOn02wQAh
Extreme Stocks
21 Oct 14 10:54:32
lookn4wins: $EEM Candlesticks $EEM Most recent stock chart http://t.co/1kqXrbwmtw
BlockTradeAlert
21 Oct 14 10:53:16
BLOCK TRADE: $EEM 500,000 shares @ $41.00 [13:53:15]
Stock Forums
21 Oct 14 10:53:07
$HYG Financials Click Here: http://t.co/7S9cENoeuP Also See: $CREE $TSLA $EEM $VEU ~
Investors Hangout
21 Oct 14 10:50:12
lookn4wins: $EEM Candlesticks $EEM Most recent stock chart http://t.co/J5G0MGuVyF
Al Sabogal
21 Oct 14 07:25:46
.@alsabogal bot $EEM 3/38c for 3.90
Al Sabogal
21 Oct 14 07:21:03
$EEM - attractive entry point http://t.co/q6ial7zyua
Investors Hangout
21 Oct 14 01:49:09
$EEM Filings Click Here: http://t.co/TnzEtaHtwQ Also See: $NM $FDX $BRK/B $BAC ~
Investors Hangout
21 Oct 14 01:47:05
$EEM 52Wk Low Click Here: http://t.co/3Lu4gOIwlj Also See: $X $TLT $MS $PSID ~
Rosner Stocks
21 Oct 14 01:46:36
$EEM News Click Here: http://t.co/c1W0sDSsTN Also See: $XLI $ERX $SMH $MT ~
Stock Forums
21 Oct 14 01:44:38
$EEM Ideas Click Here: http://t.co/FVW1J9xqHc Also See: $PCLN $GUR $MCP $XOM ~
Chasing Stars
21 Oct 14 01:41:42
$EEM Open Click Here: http://t.co/eyuvkP4T16 Also See: $ITOT $EBAY $NAVB $DFSVX ~
InterCooler
21 Oct 14 00:50:05
Short Interest in iShares MSCI Emerging Markets Indx $ETF Grows By 12.9% $EEM http://t.co/sDNyJZQ87a
Chasing Stars
20 Oct 14 20:55:50
$BABA Ask Size Click Here: http://t.co/6FfEzoNzQK Also See: $FDX $EEM $CMI $SLB ~
				
				
By  +Follow October 4, 2013 10:53AM
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