Amid tumbling commodities prices and sliding currencies, emerging markets stocks have lagged developed markets peers in a big way this year. Investors have responded by sparking some of the largest outflows from emerging markets exchange traded funds trading in the US since the global financial crisis.
For example, the Vanguard FTSE Emerging Markets ETF (NYSE: VWO) and the iShares MSCI Emerging Markets ETF (NYSE: EEM), the two largest emerging markets by assets, lost over $6.5 billion combined during the third quarter.
With outflows such as those from VWO and EEM, it is not a stretch to call emerging markets ETFs contrarian investments. Investors willing to buck the broader trend and embrace emerging markets funds need to be selective, but there are some ETFs that fit the bill as credible contrarian ideas at a time of noticeable weakness throughout developing world economies.
Russia
The Market Vectors Russia ETF (NYSE: RSX) is arguably the epitome of a contrarian emerging markets bet. Last year, the largest Russia ETF trading in the US tumbled 47.2 percent, but the fund has rebounded to post a 12.3 percent year-to-date gain.
Related Link: Gen X Loves ETFs, Too
With RSX up this year, the fund may not appear to ...
/www.benzinga.com/trading-ideas/long-ideas/15/11/5974349/getting-contrarian-with-emerging-market-etfs alt=Getting Contrarian With Emerging Market ETFs>Full story available on Benzinga.com
More...