There is no shortage of anecdotes and data points illustrating the woes being encountered by emerging markets stocks and the corresponding exchange traded funds. Over the past 90 days, 19 of the 40 worst-performing non-leveraged ETFs are emerging markets funds.
The iShares MSCI Brazil Capped ETF (NYSE: EWZ) is the “best” performer of that group with a loss of almost 28 percent. Diversified emerging markets funds are offering no shelter from the storm either, as the Vanguard FTSE Emerging Markets ETF (NYSE: VWO) and the iShares MSCI Emerging Markets ETF (NYSE: EEM), the two largest emerging markets ETFs by asset, are each off 24 percent over the past three months.
Tumbling developing world stocks are opening the door to some compelling opportunities for risk-tolerant, short-term traders with bearish leveraged emerging markets ETFs. Whether or not those traders are taking the opportunities is a different story. The triple leveraged plays on the MSCI Emerging Markets Index paint the picture of lost opportunity with inverse leveraged emerging markets ...
/www.benzinga.com/trading-ideas/long-ideas/15/08/5791591/traders-are-getting-it-wrong-with-leveraged-emerging-markets- alt=Traders Are Getting It Wrong With Leveraged Emerging Markets ETFs>Full story available on Benzinga.com
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