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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
Karin Richards
19 Dec 14 01:33:32
RT @im_an_african: fyi @Richards_Karin MT @allstarcharts This continues to be one of my favorite charts in the...Long $SPY / Short $EEM htt…
Adrien Nadeau
19 Dec 14 01:00:19
RT @lancejepsen: Emerging Markets ETF Plunge and How to Play $EEM $EDZ http://t.co/Wcuz5au0ka http://t.co/dNh4Q9q0in
WKRB News
19 Dec 14 00:54:57
iShares MSCI Emerging Markets Indx $ETF Short Interest Up 13.4% in November $EEM http://t.co/57iBLR4Qpk
ProVesting
19 Dec 14 00:53:01
$EEM: iShares MSCI Emerging Markets Indx (ETF) Short Interest Up 13.4 ... http://t.co/erDMmiLhQw http://t.co/wAlqUr4z2f
Investing Philosophy
19 Dec 14 00:39:49
RT @SeekingAlpha: 3 Potential Opportunities And 3 Risks For 2015 http://t.co/dwtdFghfht $SPY $DIA $QQQ $EEM $IEV $IEUR $EWJ
Seeking Alpha
19 Dec 14 00:32:29
3 Potential Opportunities And 3 Risks For 2015 http://t.co/dwtdFghfht $SPY $DIA $QQQ $EEM $IEV $IEUR $EWJ
Rosner Stocks
18 Dec 14 23:53:42
$IBM Investor Opinions Updated Friday, December 19, 2014 01:59:23 AM $USO $SM $XHB $EEM http://t.co/eH0GhnQPol
DailyStockPicks
18 Dec 14 23:53:31
$ECIG 400% upside buyout target of $0.50. $200M revenue expected in 2015 $EEM $ACI $XOP traders read: http://t.co/xi3978GuDs
US Banking News
18 Dec 14 23:44:43
Short Interest in iShares MSCI Emerging Markets Indx $ETF Expands By 13.4% $EEM http://t.co/COlwoz8pLU
Mark Brant
18 Dec 14 23:33:13
RT @rareviewmacro: Jack & Jill: Correlation between #China new A-share account openings & CSI 300 Index VERY high. $FXI $EEM #margin http:…
StockNewsWires
18 Dec 14 23:33:04
$EEM: Short Interest in iShares MSCI Emerging Markets Indx (ETF ... http://t.co/3KYDQ5ddqc http://t.co/MogxR3v4qX
IH News Desk
18 Dec 14 22:11:14
$MET Stock Price Updated Friday, December 19, 2014 00:12:01 AM $GLGT $SLW $EEM $RIG http://t.co/Fjx1ZRWZKS
Polyticks
18 Dec 14 22:02:14
RT @BRICBreaker: value wont be enough to save emerging markets next year. : ( http://t.co/u8GpP6PsqJ thinking its going to be a stock picke…
Corey Griewahn
18 Dec 14 19:26:05
"@StockTwits: "@allstarcharts: Continues to be one of my favorite charts in the world... : Long $SPY / Short $EEM http://t.co/3LmIHv5Mbo""
IH News Desk
18 Dec 14 19:08:33
$SMH News Updated Thursday, December 18, 2014 9:11:44 PM $EEM $WMT $EA $USO http://t.co/swHKip2962
Rosner Stocks
18 Dec 14 18:49:37
$ARTX Reviews Updated Thursday, December 18, 2014 8:59:23 PM $CSCO $KO $EEM $TVIX http://t.co/4CnWLYMJRV
iHangout
18 Dec 14 18:08:38
chartguy89: 2014 Trending Stocks: EEM +0.35% Stock Charts $EEM Electricite et Eaux http://t.co/51cQMwswX3
chartguy89
18 Dec 14 18:05:39
EEM +0.35% Stock Charts $EEM Electricite et Eaux de Madagascar (EPA) Last Updated: 12/18/2014 20:05:40 EEM Sto http://t.co/NUCNIvkvjf
Jorge A. Beltràn P.
18 Dec 14 17:11:47
RT @StockTwits: Long the U.S., short Emerging Markets. That could be one of the best pair trades heading into 2015 -> http://t.co/2UP0yDP4…
PolgarStocks
18 Dec 14 16:52:32
$EEM Stock Message Board Updated Thursday, December 18, 2014 7:07:37 PM $XLI $TNA $XLV $ETN http://t.co/TiFLvN7uQi
Rosner Stocks
18 Dec 14 16:48:09
$UNG Stock Price Updated Thursday, December 18, 2014 6:59:24 PM $EEM $GM $VTI $XLK http://t.co/biU7EpfW1S
AllStarCharts Help
18 Dec 14 16:21:52
@manishashah3 saw you asked @Allstarcharts about $EEM $SPY Check out our U.S. Averages package here: http://t.co/gRr9ygdQHt
Jeff Quiggle
18 Dec 14 16:02:30
$MACRO > $TLT $QQQ $SPY $FXI $IWM $GLD $FEZ $EEM $JNK $USO Yesterday > $TLT $GLD $FXI $IWM $QQQ $SPY $FEZ $EEM $JNK $USO
Mike Zaccardi, CMT
18 Dec 14 15:45:59
$EFA underperforming $SPY by 18.52% YTD. $EEM 19.17%
Phillip Ray
18 Dec 14 15:35:43
RT @ETFtrends: Looking for 2015 Emerging Markets Opportunities http://t.co/Nr0dyLDqxo #ETFs #ETF #emergingmarkets $VWO $EEM $DEM $EMCR $INC…
Trading Derivatives
18 Dec 14 15:17:17
RT @ETFtrends: Looking for 2015 Emerging Markets Opportunities http://t.co/Nr0dyLDqxo #ETFs #ETF #emergingmarkets $VWO $EEM $DEM $EMCR $INC…
Corey Griewahn
18 Dec 14 15:13:24
RT @StockTwits: Long the U.S., short Emerging Markets. That could be one of the best pair trades heading into 2015 -> http://t.co/2UP0yDP4…
Julia Kostova
18 Dec 14 15:08:39
RT @ETFtrends: Looking for 2015 Emerging Markets Opportunities http://t.co/Nr0dyLDqxo #ETFs #ETF #emergingmarkets $VWO $EEM $DEM $EMCR $INC…
FlowerPower
18 Dec 14 15:03:09
(1 of 2) #FastMoneyEspresso FINAL TRADE: Tim Seymour —> sell $EEM Steve Grasso —> buy $DISH
ETF Trends
18 Dec 14 15:01:45
Looking for 2015 Emerging Markets Opportunities http://t.co/Nr0dyLDqxo #ETFs #ETF #emergingmarkets $VWO $EEM $DEM $EMCR $INCO $SCIN
Tom Lydon
18 Dec 14 14:55:31
Looking for 2015 Emerging Markets Opportunities http://t.co/yjEPXXLZn5 #ETFs #ETF #emergingmarkets $VWO $EEM $DEM $EMCR $INCO $SCIN
Nick
18 Dec 14 14:11:57
$EEM (weekly) https://t.co/RTwHDjTwxX Back above that band
Greg Harmon, CMT
18 Dec 14 13:42:52
$EEM confirms reversal higher but with doji star, yuck, 39.25/40.4/41 resistance, support 38/36 http://t.co/mj3CKirpyW
Kenneth Rapoza
18 Dec 14 13:10:05
value wont be enough to save emerging markets next year. : ( http://t.co/u8GpP6PsqJ thinking its going to be a stock pickers mkt. no $EEM
howardlindzon
18 Dec 14 12:40:34
RT @StockTwits: Long the U.S., short Emerging Markets. That could be one of the best pair trades heading into 2015 -> http://t.co/2UP0yDP4…
John H Armstrong
18 Dec 14 12:25:56
RT @StockTwits: Long the U.S., short Emerging Markets. That could be one of the best pair trades heading into 2015 -> http://t.co/2UP0yDP4…
Adeodato Volpi Netto
18 Dec 14 12:19:20
RT @StockTwits: Long the U.S., short Emerging Markets. That could be one of the best pair trades heading into 2015 -> http://t.co/2UP0yDP4…
CarlosRoblesPeñúñuri
18 Dec 14 12:14:40
RT @StockTwits: Long the U.S., short Emerging Markets. That could be one of the best pair trades heading into 2015 -> http://t.co/2UP0yDP4…
Stock pЯop
18 Dec 14 12:13:39
RT @StockTwits: Long the U.S., short Emerging Markets. That could be one of the best pair trades heading into 2015 -> http://t.co/2UP0yDP4…
StockTwits
18 Dec 14 12:12:36
Long the U.S., short Emerging Markets. That could be one of the best pair trades heading into 2015 -> http://t.co/2UP0yDP40O $SPY $EEM
finsovet
18 Dec 14 11:56:51
RT @allstarcharts: This continues to be one of my favorite charts in the world. And I look at a lot of them: Long $SPY / Short $EEM http:…
CARLO GALLINA, CFA
18 Dec 14 10:59:11
RT @allstarcharts: This continues to be one of my favorite charts in the world. And I look at a lot of them: Long $SPY / Short $EEM http:…
Market Int Center
18 Dec 14 10:52:18
iShares MSCI Emerging Markets Index $EEM Showing Bearish Technicals ( http://t.co/Qvy2kxfvy9 )
Financial Tailor
18 Dec 14 10:51:55
RT @allstarcharts: This continues to be one of my favorite charts in the world. And I look at a lot of them: Long $SPY / Short $EEM http:…
Lagos Capital
18 Dec 14 10:50:43
RT @allstarcharts: This continues to be one of my favorite charts in the world. And I look at a lot of them: Long $SPY / Short $EEM http:…
'ga re Tshwane'
18 Dec 14 10:50:39
fyi @Richards_Karin MT @allstarcharts This continues to be one of my favorite charts in the...Long $SPY / Short $EEM http://t.co/faxmTIIcio
'ga re Tshwane'
18 Dec 14 10:48:35
RT @allstarcharts: This continues to be one of my favorite charts in the world. And I look at a lot of them: Long $SPY / Short $EEM http:…
Linda
18 Dec 14 10:48:02
RT @allstarcharts: This continues to be one of my favorite charts in the world. And I look at a lot of them: Long $SPY / Short $EEM http:…
Tweed
18 Dec 14 10:47:50
RT @allstarcharts: This continues to be one of my favorite charts in the world. And I look at a lot of them: Long $SPY / Short $EEM http:…
J.C. Parets
18 Dec 14 10:46:11
This continues to be one of my favorite charts in the world. And I look at a lot of them: Long $SPY / Short $EEM http://t.co/2O46PkfGiC
				
				
By  +Follow October 4, 2013 10:53AM
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