An oft-cited reason for the ongoing bear market for emerging markets stocks and exchange-traded funds is the stronger U.S. dollar. The strengthening greenback has been particularly problematic for those developing economies that previously issued large amounts of dollar-denominated debt and major commodities producers.
For investors, the problem is that many traditional emerging markets ETFs are heavily allocated to commodities-producing countries, such as Brazil, meaning the rising dollar proves particularly punitive to those funds.
Fortunately, investors can skirt strong dollar issues while remaining allocated to developing economies with the WisdomTree Strong Dollar Emerging Markets Equity Fund (BATS: EMSD).
The 'Less Bad' Phenomenon
These days, the hallmark of a solid emerging markets is not so much “good” as it “less bad.” Since its late October debut, the WisdomTree Strong Dollar Emerging Markets Equity Fund has been less bad, falling 9.9 percent compared to a ...
/www.benzinga.com/trading-ideas/long-ideas/16/01/6157676/this-emerging-markets-etf-should-be-less-bad alt=This Emerging Markets ETF Should Be Less Bad>Full story available on Benzinga.com
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