|Bid||0.00 x 1000|
|Ask||0.00 x 4000|
|Day's Range||38.97 - 39.68|
|52 Week Range||37.58 - 52.08|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.18|
|Expense Ratio (net)||0.67%|
U.S. equities began the week with more volatility reigning as the Dow Jones Industrial Average fell over 400 points to start Monday's trading session, but as investors become accustomed to this new normal, ETF Trends Publisher Tom Lydon is keen to notice one particular trend--the continuous flow of capital into emerging markets. The capital markets got a reprieve from the ongoing trade wars between the United States and China as U.S. President Donald Trump and Chinese president Xi Jinping agreed to cease fire on their tariff-for-tariff battle last week. As part of the agreement, both nations agreed to withhold imposing further tariffs on each other for 90 days while they work out a firm, ironclad deal to start 2019. Despite more global news, such as a delayed Brexit vote in Parliament, bringing down U.S. equities, emerging markets investors remain unfazed during Monday's session.
Emerging markets got bolstered on Monday as U.S. President Donald Trump and Chinese president Xi Jinping ceased fire on their tariff-for-tariff battle, agreeing to a 90-day truce to ameliorate their differences on trade. Emerging markets, in particular, have felt the pangs of the trade wars between the U.S and China, causing a negative ripple effect into EM ETFs, such as the Vanguard FTSE Emerging Markets ETF (VWO) --down 15.89% YTD, iShares Core MSCI Emerging Markets ETF (IEMG) --down 16.25% YTD and iShares MSCI Emerging Markets ETF (EEM) --down 16.34% YTD. On Monday, VWO climbed 2%, IEMG rose 2.2%, EEM ticked 2.03% higher, and as such, Direxion Daily MSCI Emerging Markets Bull 3x Shares (EDC) joined the party with a gain of 6.46% as of 2:00 p.m. ET.
If you aren't familiar with emerging markets, it's time to change that. Here's an explainer about what they are and how anyone can get invested.
The capital markets got a reprieve from the ongoing trade wars between the United States and China as U.S. President Donald Trump and Chinese president Xi Jinping agreed to cease fire on their tariff-for-tariff battle, causing the Dow Jones Industrial Average to climb over 300 points on Monday. The two leaders met at the G-20 Summit in Buenos Aires, putting global markets on pause as the two economic superpowers met to hopefully ameliorate their trade differences. "The explicit delay in tariffs is on the positive end of expectations," said Helen Qiao, China and Asia economist with Bank of America Lynch.
As we’ve discussed in this series, market uncertainty is increasing. Looming earnings deceleration, trade policy uncertainty, and the Fed’s tightening have been major factors weighing on investors’ minds. For most of this year, gold (GLD) has not been a safe-haven asset, as the US dollar (UUP) (USDU) has continued strengthening and the Fed’s rate hike outlook has remained strong.
You might think there's no such thing as large draw-downs given the extended bull market throughout much of 2018, but as for emerging markets investors, they believe. Emerging markets have been marred by the trade wars between the U.S and China, causing a negative ripple effect into emerging market ETFs, such as the Vanguard FTSE Emerging Markets ETF (VWO) --down 15.89% YTD, iShares Core MSCI Emerging Markets ETF (IEMG) --down 16.25% YTD and iShares MSCI Emerging Markets ETF (EEM) --down 16.34% YTD.
To help investors keep up with the markets, we present our ETF Scorecard. The Scorecard takes a step back and looks at how various asset classes across the globe are performing. The weekly performance is from last Friday’s open to this week’s Thursday close.
Investors moved back into emerging markets in July after a major summer sell-off only to get burned when the asset class continued to fall. In November money managers are back, saying they think now's the real time to buy.
President Trump has made it clear time and again that he is not happy with the Federal Reserve raising rates (TLT) so quickly. Usually, presidents don’t interfere or comment on the Fed’s decisions. The Fed is seen as an independent authority, which is important to maintain economic stability.
Progress in U.S.-Sino trade talks and hiking of benchmark rates by two Asian central banks put emerging market ETFs in focus.
Call it investor shrewdness or overexuberant hope, but capital allocators into emerging markets won't budge, according to ETF Trends Publisher Tom Lydon on CNBC's Closing Bell on Friday, who has seen continued flows into the EM space--a sign that EM investors are doubling down on the notion that a U.S.-China trade deal will materialize. While the majority of investors might be driven away by the red prices in emerging markets, Lydon believes they should be looked at as substantial markdowns, especially if trade negotiations between the U.S. and China result into something materially positive--that's what emerging markets bettors are essentially banking on. "The thing that's the most surprising regarding flows is money still coming into emerging markets ETFs," said Lydon.
During the third quarter, gold’s price (GLD) fell ~5%, dipping below the psychologically important level of $1,200 per ounce it touched in August.
Tanking oil prices and a recent selloff in the stock market may be sounding the alarm of a growth reversal around the world, analysts warn.
November marked the second straight month of investors’ bearishness with 44% of them believing that global economic growth will decelerate in the next 12 months. It believes that investor sentiment could take a sudden turn for the worse. While 16% of investors surveyed in October thought that the stock market has peaked, the number increased to 30% in November.
BAML (Bank of America Merrill Lynch) conducted a survey that polled 225 global investors with $641 billion in total assets under management between November 2 and November 8.
With the U.S. midterm elections now behind us, and that source of uncertainty resolved, many investors are now focused on which stocks and sectors are most likely to outperform. Marko Kolanovic, the widely followed global head of quantitative and derivatives research at JPMorgan, forecasts a year-end rally that he believes will be led by small cap and emerging market stocks. "Appropriate exposures may be high-beta indices such as Russell 2000 and MSCI Emerging Markets," Kolanovic wrote in recent note to clients, as quoted by CNBC.
Sylvia Jablonski, Direxion Investments, and Steve Massocca, Wedbush Securities, discuss whether Fed Chair Jerome Powell put a bottom in the market and if this is the start of a Santa Claus rally.
Yahoo Finance’s Alexis Christoforous and Dion Rabouin discuss how the market volatility is impacting emerging markets.