Emerging Markets Performance in Q2
EM consolidated on gains made in Q1. The MSCI Emerging Markets Index (+0.8%) trailed the MSCI World Index (+1.2%) in Q2 2016. Emerging markets (EM) consolidated on gains made in Q1 and has advanced 6.5% in H1 2016, the best performing region, followed by the S&P 500 Index with a return of 3.8%. Commodity prices continued to rise as central banks continued to remain accommodative. Although investors were spooked by the late June Brexit result in the UK referendum, confidence was quickly regained as central bankers offered liquidity lines to prevent another financial crisis.
Country performance. As it was in Q1 2016, Latin America (+5.4%) led EM whereas Asia (+0.4%) and Europe, Middle East and Africa (EMEA) (-1.1%) lagged. Peru (+18.2%), Brazil (+13.9%), Philippines (+5.5%), Russia (+4.2%) and Indonesia (+3.6%) were the best performing emerging markets in Q2. Poland (-16.8%), Greece (-13.2%), Turkey (-7.5%), Mexico (-6.9%) and Malaysia (-5.7%) were the worst performers.
Sector performance. Sector performance was a mixed bag in Q2. Winners and losers were made up from both cyclical and defensive sectors. Consumer Staples (+4.3%), Technology (+2.6%) and Energy (+1.9%) outperformed the EM benchmark. Industrials (-3.2%), Consumer Discretionary (-1.3%) and Materials (-0.8%) were the biggest underperformers.
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Emerging market investments involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles, from economic or political instability in other nations or increased volatility and lower trading volume. Please call +1 888 800 4347 or click here access a prospectus online. Investing involves risk, including possible loss of principal.
Index returns are for illustrative purposes only and do not represent actual fund performance. Index performance returns do not reflect any management fees, transaction costs or expenses, which could reduce returns. Indexes are unmanaged and one cannot invest directly in an index. Performance data quoted represents past performance. Past performance does not guarantee future results. Current performance data may be higher or lower than actual data quoted. For the most current index performance data please call + 1 888 800 4347.
The content of this material is presented for general information purposes only. The statements and opinions expressed are those of the author and are as of the date of this material. All information is historical and not indicative of future results, and subject to change. Readers should not assume that an investment in the securities mentioned above was or would be profitable in the future. This information is not a recommendation to buy or sell. While the information and statistical data contained herein are based on sources believed to be reliable, we do not represent that it is accurate and it should not be relied on as such or be the basis for an investment decision. This material may include estimates, projections and other "forward-looking statements". Emerging Global Advisors, LLC assumes no duty to update any such statements. Due to numerous factors, actual events may differ substantially from those presented. Past performance does not guarantee future results.
EGA and EGShares Funds are distributed by ALPS Distributors, Inc. Emerging Global Advisors acts as the investment advisor to the EGShares Funds. ALPS and Emerging Global Advisors are unaffiliated entities.
Emerging market investments involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles, from economic or political instability in other nations or increased volatility and lower trading volume. Please call +1 888 800 4347 or click here access a prospectus online. Investing involves risk, including possible loss of principal.
Index returns are for illustrative purposes only and do not represent actual fund performance. Index performance returns do not reflect any management fees, transaction costs or expenses, which could reduce returns. Indexes are unmanaged and one cannot invest directly in an index. Performance data quoted represents past performance. Past performance does not guarantee future results. Current performance data may be higher or lower than actual data quoted. For the most current index performance data please call + 1 888 800 4347.
The content of this material is presented for general information purposes only. The statements and opinions expressed are those of the author and are as of the date of this material. All information is historical and not indicative of future results, and subject to change. Readers should not assume that an investment in the securities mentioned above was or would be profitable in the future. This information is not a recommendation to buy or sell. While the information and statistical data contained herein are based on sources believed to be reliable, we do not represent that it is accurate and it should not be relied on as such or be the basis for an investment decision. This material may include estimates, projections and other "forward-looking statements". Emerging Global Advisors, LLC assumes no duty to update any such statements. Due to numerous factors, actual events may differ substantially from those presented. Past performance does not guarantee future results.
EGA and EGShares Funds are distributed by ALPS Distributors, Inc. Emerging Global Advisors acts as the investment advisor to the EGShares Funds. ALPS and Emerging Global Advisors are unaffiliated entities.
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