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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
Stock_Tracker
28 Jul 15 17:34:33
DAL Delta Air Lines Inc. Yield http://t.co/piRSIn7Jg1 $DAL $SUPN $EEM $XLP #DAL #nasdaq #investing
Jake13
28 Jul 15 17:33:46
BIDU Baidu, Inc. Short Sales http://t.co/8lVMR47VM5 $BIDU $RSX $EEM $SKX #BIDU #nasdaq #invest
Trading The Bias
28 Jul 15 17:08:10
$EEM daily death cross combined with a DCB. http://t.co/hjKvsEsY11
Michael G Flynn
28 Jul 15 16:56:56
RT @david_settle: 07/28/15 - Today's Market Forecast™ video can be viewed here: https://t.co/2N5G2yPkv5 Discussed: $SPY $IWM $USO $TLT $GLD…
Rosner Stocks
28 Jul 15 16:39:12
$PCLN Opinions Updated Tuesday, July 28, 2015 6:59:24 PM $EEM $NBIX $FNMA $JNK http://t.co/JBwTt77FPs
Emylers
28 Jul 15 16:36:13
EEM iShares MSCI Emerging Markets Company Info http://t.co/3rbuqLquHM $EEM $XLI $SSO $GDX #EEM #stocks #stock
Justin Lavelle
28 Jul 15 16:29:17
RT @DeFotis: 3 Things Investors Want In Aftermath of #Greece #Credit Turmoil http://t.co/P6jgN8WVDc @barronsonline #RISK $GREK $EEM $VWO
Junk Crank
28 Jul 15 16:07:00
RSI(5) Alert - overSOLD: $SPY, $EEM, $EWJ, $FXI, $QQQ, $IWM, $EWZ, $EFA, $XLE, $VWO, $XOP, $EWT, $XLI, $XLV, $XLB, $XLK, $XIU.TO
binaryoptionsocial
28 Jul 15 16:00:00
XLI Industrials Select Sector SPDR 52Wk Low http://t.co/0rJf5hYmfR $XLI $BAC $EEM $GOOGL #XLI #stocks #stock http://t.co/IFXe4VLiF2
binaryoptionsocial
28 Jul 15 15:59:51
XLP Consumer Staples Select Sector SPDR Day Low http://t.co/U1mA4sbSJ4 $XLP $KBE $EEM $CAT #XLP #finance #nasda… http://t.co/Csk7miIhta
binaryoptionsocial
28 Jul 15 15:59:50
XLI Industrials Select Sector SPDR Bid Size http://t.co/Pstbf4iGl6 $XLI $XLI $EEM $AKAM #XLI #finance #nasdaq … http://t.co/Csk7miIhta
binaryoptionsocial
28 Jul 15 15:56:04
XLP Consumer Staples Select Sector SPDR Day Low http://t.co/U1mA4sbSJ4 $XLP $KBE $EEM $CAT #XLP #finance #nasdaq http://t.co/Csk7miIhta
binaryoptionsocial
28 Jul 15 15:56:01
XLI Industrials Select Sector SPDR Bid Size http://t.co/Pstbf4iGl6 $XLI $XLI $EEM $AKAM #XLI #finance #nasdaq http://t.co/Csk7miIhta
lookn4wins
28 Jul 15 15:51:18
XLE Energy Select Sector SPDR Last Trade http://t.co/AEZphgXAkI $XLE $EEM $PG $VTI #XLE #pennystocks #finance
nasdaqfan
28 Jul 15 15:51:09
XLV Health Care Select Sector SPDR E.P.S. http://t.co/CAh7vtOJpP $XLV $EEM $USO $SPXS #XLV #tradeideas #finance
clayton
28 Jul 15 15:51:05
XLP Consumer Staples Select Sector SPDR Day Low http://t.co/dubs97UA0F $XLP $KBE $EEM $CAT #XLP #finance #nasdaq
IH NASDAQ OMX
28 Jul 15 15:51:04
XLI Industrials Select Sector SPDR 52Wk Low http://t.co/lGVHWAb3Cl $XLI $BAC $EEM $GOOGL #XLI #stocks #stock
PolgarStocks
28 Jul 15 15:51:04
XLI Industrials Select Sector SPDR Bid Size http://t.co/2I8hm934Xp $XLI $XLI $EEM $AKAM #XLI #finance #nasdaq
DennyT
28 Jul 15 15:51:03
XLE Energy Select Sector SPDR Company Info http://t.co/m3c4AytVVy $XLE $QTMM $TQQQ $EEM #XLE #stock #share
Emylers
28 Jul 15 15:51:03
XLU Utilities Select Sector SPDR Bid Size http://t.co/f2NbNzS6Bd $XLU $SINA $EEM $AMBA #XLU #stocks #pennystocks
Rosner Stocks
28 Jul 15 15:48:32
USO United States Oil Fund, LP Financials http://t.co/2tMR4oIZmr $USO $QTMM $EEM $PRTA #USO #tradeideas #tradeideas
Emylers
28 Jul 15 15:48:05
UNG Unitedhealth Group, Inc. Market Cap http://t.co/Eed2HcrZ0b $UNG $UA $EEM $TWTR #UNG #invest #stock
nasdaqfan
28 Jul 15 15:47:06
TOS.TO Technologies of Sterilization with Ozone TSO3, Inc. Company Info http://t.co/1dYoseZfij $TOS.TO $EEM $FV $TNA #TOS.TO…
Lucky Jimmy
28 Jul 15 15:47:05
TVIX VelocityShares Daily 2x VIX Short Term ETN Ex-Div Date http://t.co/2sOt6dNeDz $TVIX $PHM.V $EEM $XLI #TVIX #stocks #stocks
Investors Hangout
28 Jul 15 15:46:33
SUPN Supernus Pharmaceuticals, Inc. Ideas http://t.co/9Fh0IBpMQ2 $SUPN $SD $EEM $WFC #SUPN #nasdaq #nasdaq
Stock Forums
28 Jul 15 15:45:09
RUSS Direxion Daily Russia Bear 3x Shares Shares http://t.co/uDwrA74Clu $RUSS $MO $EEM $FCX #RUSS #invest #tradeideas
jim50
28 Jul 15 15:43:34
PRTA Prothena Corp. Financials http://t.co/uh7jRhvLYD $PRTA $EEM $LNKD $TD.TO #PRTA #invest #stocks
Rosner Stocks
28 Jul 15 15:43:33
POT Potash Corp. Saskatch, Inc. E.P.S. http://t.co/5aUVKQZR58 $POT $UNG $JPM $EEM #POT #share #stock
lookn4wins
28 Jul 15 15:43:06
QTMM Quantum Materials Corp. P/E Ratio http://t.co/yprfS1HmQp $QTMM $EEM $QLD $RWM #QTMM #pennystocks #nasdaq
PolgarStocks
28 Jul 15 15:43:04
OIH Market Vectors Oil Services Ex-Div Date http://t.co/1qbdP7rXEH $OIH $EEM $FNMA $BAC #OIH #finance #invest
Investors Hangout
28 Jul 15 15:42:33
NUGT Direxion Daily Gold Miners Bull 3x Shares Yield http://t.co/5nwdT8ewBc $NUGT $EEM $POT $EWJ #NUGT #pennystocks #nasdaq
DennyT
28 Jul 15 15:42:32
NFLX Netflix, Inc. EOD Data http://t.co/yHACxU2kUl $NFLX $XHB $EEM $GS #NFLX #tradeideas #stocks
Stock_Tracker
28 Jul 15 15:42:14
MPC Marathon Petroleum Corp. Ask http://t.co/zmuEoij878 $MPC $AAPL $EEM $BIIB #MPC #tradeideas #pennystocks
Emylers
28 Jul 15 15:39:35
IDRA Idera Pharmaceuticals, Inc. Investor Opinions http://t.co/QgCqkIstwA $IDRA $MNKD $T $EEM #IDRA #invest #invest
DennyT
28 Jul 15 15:39:33
JNK SPDR Barclays High Yield Bond ETF Ask http://t.co/VBnXn8DKOL $JNK $MNKD $EEM $UA #JNK #tradeideas #nasdaq
David A. Ferris
28 Jul 15 15:39:09
RT @david_settle: 07/28/15 - Today's Market Forecast™ video can be viewed here: https://t.co/2N5G2yPkv5 Discussed: $SPY $IWM $USO $TLT $GLD…
Investors Hangout
28 Jul 15 15:38:04
GE General Electric Co. Stock Message Board http://t.co/tmqD6pEWBf $GE $EEM $UNG $UA #GE #pennystocks #invest
Emylers
28 Jul 15 15:38:03
GDX Market Vectors Gold Miners Ask http://t.co/mnfBpogL0R $GDX $ASHR $EEM $TNA #GDX #invest #invest
Stock Forums
28 Jul 15 15:37:33
GILD Gilead Sciences, Inc. Stock Forum http://t.co/Qf6HTBz1Ls $GILD $EEM $XLK $PNRA #GILD #stock #investing
Emylers
28 Jul 15 15:37:32
GE General Electric Co. Chart http://t.co/fJDGasyLXm $GE $GS $EEM $C #GE #pennystocks #invest
IH NASDAQ OMX
28 Jul 15 15:37:03
GDX Market Vectors Gold Miners Exchange http://t.co/GWfufvdajY $GDX $SLV $EEM $HACK #GDX #nasdaq #investing
IH News Desk
28 Jul 15 15:37:02
FV First Trust Dorsey Wright Focus 5 ETF Day Low http://t.co/jrEo62nPbV $FV $ITB $JNK $EEM #FV #stockmarket #stocks
PolgarStocks
28 Jul 15 15:36:33
FXC Currency Shares Canadian Dollar Trust Current Price http://t.co/huMmFVKasc $FXC $ITB $JNUG $EEM #FXC #stock #finance
Rosner Stocks
28 Jul 15 15:36:32
EEM iShares MSCI Emerging Markets E.P.S. http://t.co/vhV9tTaiyY $EEM $XLY $NFLX $XLP #EEM #invest #pennystocks
Rosner Stocks
28 Jul 15 15:36:29
EEM iShares MSCI Emerging Markets Ask http://t.co/8gldnwpqVY $EEM $AEM $SLW $SLV #EEM #stockmarket #share
IH NASDAQ OMX
28 Jul 15 15:36:28
EEM iShares MSCI Emerging Markets Change http://t.co/wxvYi5PmAK $EEM $AMDA $SCTY $MPC #EEM #tradeideas #finance
IH NASDAQ OMX
28 Jul 15 15:36:27
ERX Direxion Daily Energy Bull 3x Shares Current Price http://t.co/2W5xvatfj7 $ERX $EEM $ACQ.TO $JDST #ERX #investing #share
Stock Forums
28 Jul 15 15:36:20
EEM iShares MSCI Emerging Markets Ask Size http://t.co/1q44KSaz2m $EEM $NUGT $NEM $MA #EEM #pennystocks #stockmarket
Jake13
28 Jul 15 15:36:11
ERX Direxion Daily Energy Bull 3x Shares News http://t.co/hTrU8rP6yK $ERX $EEM $SLW $GOOG #ERX #investing #tradeideas
danrocks
28 Jul 15 15:36:11
EEM iShares MSCI Emerging Markets Bid Size http://t.co/rawRHUlXzo $EEM $HGU.TO $UA $KBE #EEM #nasdaq #invest
				
				
By  +Follow October 4, 2013 10:53AM
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