Helping Self-Directed Investors Succeed Blog - International ETFS - A Mixed Bag

International ETFS - A Mixed Bag

November 26th, 2012

Global Markets have recoiled a bit since the US Presidential Elections.

US Equities have had a decent run with the onset of the holiday season and it appears equities are for now not very risk averse to the so called "fiscal cliff". But this can change.

International ETFS at the other end of the spectrum appear to be a mixed bag as of now. For example, the broad-based emerging market attraction has somewhat diminished. Investors appear to now be focusing with a narrower mindset when it comes to international markets. Not all international equity ETFS are rising and falling together now. Correlated moves used to be seen in markets as diverse as China, India, S. Korea are absent now.

Take for instance the two international ETFS focused on countries that aren't that far apart. THD - Thailand ETF - is logging new highs while IDX - Indonesia ETF - is down over 7% from its annual high price. This lack of correlation can present interesting opportunities for both growth or value oriented investors.

Broader Europe focused ETFS are technically better positioned now than even before since the start of the financial crisis in that region. Greece is again coming back to focus as Europe focused single-country ETFs are nearing their annual highs. If Europe focused ETFS break above their annual highs it will likely point to a turnaround in the financial crisis in that region. We'll have to wait and see.

Contrarian minded investors may want to look at weak ETFS in this bag now such as VNM - Vietnam ETF and ECH - Chile ETF. The economies that are represented by these ETFS are still struggling owing to various growth issues. A turnaround here may not come by easily for these regions but that's what may attract some contrarians to take a closer look at them.

Good Luck and Happy Trading!

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