Investment Strategy
Emerging Market Valuations
When is it time to buy emerging markets? Investors spooked by China, commodities and currencies will eventually look for a policy response from government treasuries and central banks to boost economic growth. In addition, emerging markets (EM) would benefit from a delay in policy tightening in the U.S. and Fed Funds futures have indicated a lower probability of a rate hike in September since the devaluation of the Chinese yuan earlier in August....
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Optimizing International Equity Allocations
July 27, 2015
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Categories:
Chart of the Week,
Investment Strategy,
Emerging Markets,
Frontier Markets
As we have previously discussed (Emerging and Frontier Markets Have Improved Diversification, July 14, 2015), EAFE is not a good diversifier of U.S. equity portfolios. While EAFE equities have risen on expectations of a successful QE program and U.S. equities have appreciated on expectations of further earnings growth, EM equities have not participated in a sustained post financial crisis global equity rally. On the other hand, despite its high volatility profile, EM offers diversification to U.S. investors....
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The Emerging Markets Update: 2Q15 Review and 3Q15 Preview
In a rollercoaster quarter, the MSCI Emerging Markets (EM) Index held on to slender gains outperforming both the S&P; 500 (+0.3%) and the MSCI Frontier Markets (FM) Index (+0.1%). Inflows returned to EM equity ETFs as the U.S. Federal Reserve pushed back the timing of its first interest rate hike. In the Emerging Markets Update, the EGA Investment strategy team discusses the events in the second quarter and previews their thoughts on what's in store for 3Q15....
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Risky Business? Rethinking International Equity Allocations
When approaching asset allocation, equity investors often follow a top-down, macro-economic approach to consider the merits of each country or region in their portfolio before considering the characteristics of individual securities. We have noticed that many investors focus on riskiness or volatility of an asset class at the expense of the overall risk-adjusted returns or how different investments work together in a portfolio. The inclusion of EM and FM equities has reduced inter-asset correlation considerably and improved diversification....
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The Emerging Markets Update: 1Q15 Review and 2Q15 Preview
The first quarter of 2015 has come to a close and investors are faced with an ever changing global economic landscape. With a change in market leadership as the MSCI Emerging Markets (EM) Index outperformed the S&P; 500 Index, the EGA investment team believes there is an opportunity for investors to be selective within EM and focus on those areas of potential growth....
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Disclosure
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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