I had a clipping pulled from IBD, on I think, March 30th, that in my opinion partially explains the movements in the Emerging Markets — funds flow. $3.71Bn in February into overseas funds following $8.26Bn in January.
Be that as it may, Emerging Markets funds are back. The ubiquitous EEM – iShares MSCI Emerging Markets ETF has been on a tear since March 17th. All trade triangles are green, and it’s scoring +100 on Marketclub’s trend score. EEM is trading at a $0.34 premium to net asset value. My preferred Emerging Market ETF, Vanguard Emerging Markets VWO, also took off on March 17th, has three green trade triangles and scores +90 on Marketclub’s trend score. It is trading at a $0.14 premium to net asset value based on the close today. (Vanguard reports a $2.46 discount on their website, so perhaps I need an updated NAV score). Volume’s not high historically but it is trending up.
By the way, the reason I like VWO over EEM is that it’s fee is one-third that of EEM, and with enough dollars invested these things add up over time. I am visualizing a buy order for VWO on Monday.
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But what of our old friend EWZ, the iShares Brazil large-cap ETF? The darling of all, it has languished for quite a while. Is it ready for a come-back? It’s certainly on fire the last three days, leapfrogging its small-cap sibling BRF. It’s picked up a green weekly and a monthly trade triangle in three days and scores +100.
I am a little more skeptical of EWZ than I am the broader emerging markets so I would be looking for one more positive close over what I see as resistance at $79 before I become seriously interested.
Interesting doings in the international markets.