Tag Archives: apple

3 Emerging Market ETFs With Q4 Gains

Wrong were those investors who thought emerging markets would perform miserably in the fourth quarter due to the looming Fed tightening. The gradual waning of cheap dollar inflows post lift-off, the resultant rise in the greenback, sluggish emerging currencies, high inflation issues, political disorder and the commodity market rout were deemed to dull the appeal of emerging markets. The theory wasn’t completely baseless. The broader emerging market ETF iShares MSCI Emerging Markets (NYSEARCA: EEM ) has lost 17% so far this year and over 3.3% so far this quarter (as of December 18, 2015). But not all emerging market equities and the related ETFs have been vulnerable. At least, Q4 performance of a few emerging market ETFs has been noteworthy. Investors should note that the S&P 500-based SPDR S&P 500 Trust ETF (NYSEARCA: SPY ) has added over 1.8% so far this quarter (as of December 18, 2015) and the world ETF iShares MSCI ACWI (All Country World Index) Index (ACWI ) is up 0.3%. A couple of emerging market ETFs have managed to climb and two funds even impressed with their double-digit returns in the quarter-to-date period (as of December 18, 2015). Interestingly, these top performers are spread across various sectors or countries and could be better plays in the current market. This suggests that there have been winners in every corner of the space, even amid a sluggish overall trend. Below, we highlight three top-performing emerging market ETFs in the quarter-to-date frame. Emerging Markets Internet & E-Commerce ETF (NYSEARCA: EMQQ ) – Up 23.3% The Internet and e-commerce industry is developing fast with the increased use of social networking sites and online trading as well as the growing adoption of smartphones and other mobile Internet devices. So, this product has more to do with technological expansion in the emerging markets rather than reflecting the slowing potential of those economies. In fact, EMQQ can succeed on the back of a fast-expanding middle-class population of emerging nations. This $12-million ETF considers companies from Asia, Latin America, Africa and Eastern Europe. Country-wise, China takes the highest allocation in the fund. Alibaba (NYSE: BABA ), Baidu (NASDAQ: BIDU ) and Baozun (NASDAQ: BZUN ) are the top three holdings of the fund. EMQQ charges 86 bps in fees and is up 23.5% so far in the fourth quarter (as of December 18, 2015). First Trust ISE Chindia ETF ( FNI ) This fund follows the ISE Chindia Index, which measures the performance of the liquid firms domiciled either in China or in India. Notably, even after the upheaval in August, Chinese stocks are among the top and stellar performing securities in the emerging market pack. As far as India is concerned, it is one of the most stable emerging markets at the current level in terms of economic growth and corporate profitability. It has accumulated nearly $230 million in its asset base. The product puts nearly 50% of its assets in the top 10 holdings, with JD.com (NASDAQ: JD ), Tata Motors (NYSE: TTM ) and NetEase (NASDAQ: NTES ) being the top three firms. From a sector look, more than 35% of the assets are allocated to information technology while about one-third goes to consumer discretionary. FNI charges 60 bps in fees per year from investors and has returned 12.63% so far in the quarter. The product looks to track 50 emerging market-based depositary receipts. The fund invests about 45% of assets in China while Taiwan, Brazil and India get the next three positions with 14%, 12.5% and 10.4% weight, respectively. The fund charges 30 bps in fees. Sector-wise, the fund is heavy on information technology (38.68%) while telecom (16.75%), financials (14.7%) and energy (10.2%) get double-digit exposures. Alibaba (11.5%) and Taiwan Semiconductor (NYSE: TSM ) (10.6%) are the top two stocks of the fund. ADRE is up 5.6% in the quarter-to-date frame and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Original

Are Large U.S. Firms Preparing For Business In Iran?

General Electric, Apple, HP Inc., Schlumberger and other U.S. companies are reportedly preparing for the lifting of economic sanctions against Iran so they can enter the market of 77 million people. Concerned they might lag Asian and European competitors in Iran, some U.S. companies plan to hit the ground running as soon as sanctions are lifted, by drafting contracts and sending envoys, the Wall Street Journal reported. Sanctions are expected to

Everyone Wants To Hit The Long Ball

If you ever go to a golf driving range count the number of people hitting their driver relative to the number of people hitting their pitching wedge. You’ll notice that the vast majority of amateur golfers focus excessively on how far they can hit a golf ball. This makes no sense though. If you’re like most amateurs, you probably have trouble breaking 100. And that means you’re going to pull your driver out of your bag fewer than 15 times including the par 3 holes (unless you’re like me and you regularly keep that driver out to account for Mulligans). The point is, about 15% of your shots will occur with the driver. 85% of your shots will likely occur with an iron or putter. The short game is far more important than the long game. Golfers focus on hitting the long ball because it is a greater form of instant gratification. It’s the what have you done for me lately effect. A golf round can last for 3, 4, 5 or 6 hours. A few moments of instant gratification can make a seemingly arduous day appear worthwhile. Of course, this is precisely the wrong way to win these games. You win by doing lots of little things right and avoiding big mistakes. Ironically, going for the long ball increases the odds of making big mistakes, which increases your chances of performing poorly. The investing corollary is the constant reach for the next Apple (NASDAQ: AAPL ), the next Microsoft (NASDAQ: MSFT ), the “market beating” fund manager or what Peter Lynch called the “10 bagger.” This chase is as alluring as the long ball in golf. And it’s just as destructive. But like most amateur golfers, the average amateur investor doesn’t fully realize that what they’re often doing here is increasing the odds of making big mistakes in their portfolios rather than increasing the odds of winning (achieving their financial goals). For most of us, achieving our financial goals has nothing to do with finding the next Apple, “beating the market” or landing the next 10 bagger. For most people, allocating their savings boils down to two simple goals: Maintaining your purchasing power. Avoiding an excessive amount of permanent loss risk. But the allure of the long ball and instant gratification is often too enticing to ignore. And so we keep pulling out that driver. Again and again and again.