We often talk of performance, but one statistic then can be overlooked is into what ETF's is the money flowing? For those who follow these markets, it may be no surprise that the money has been flowing into international funds. Money follows performance, and International Funds have been some of the top performing funds in the last year.
The funds with the largest asset growth are :
iShares MSCI Emerging Markets Index (EEM:NYSE)
iShares MSCI South Korea Index Fund (EWY:NYSE)
iShares MSCI Taiwan Index Fund (EWT:NYSE)
FTSE/Xinhua China 25 Index Fund (FXI:NYSE )
iShares MSCI Brazil Index Fund (EWZ:NYSE)
These funds had an amazing January. The Brazil EWZ was up 24% for the month, China's FXI increased 16%, the emerging-markets EEM jumped 14%, Taiwan's EWT spiked 7.5%, and the South Korean EWY rose 6.7% for the month.. Now some of this growth can be attributed to currency gain, however these ETF's remain strong. In fact they have been so strong for so long, some experts are expecting a sharp pullback in these Funds, however there is no evidence of that at this point.
These foreign funds have gained anywhere from 6.8% to 24% for the month of January. Now take a look at the good old S&P 500. Up 2.5% for the month of January. It is no wonder investors are looking outside of the US to get a better return on their money.
JP Morgan is looking for Latin America, Taiwan, and Korea to grow their GDP around 4.5% this year. Continuing at its blistering pace will be China this year with a GDP growth rate of about 9.2%.
These foreign assets continue to be strong in both price and asset growth. Some feel they may be getting over extended, but nobody can say for sure where the top is. US based Exchange Traded Funds are off to a slow start this year and it looks like we will see the same for the rest of the year.
To keep up with the latest information on the Exchange Traded Fund Markets visit
www.exchangetradedfundinvesting.com.
About The Author
Andy Goldman operates
www.exchangetradedfundinvesting.com. This site follows trends, industry news, and performance of Exchange Traded Funds
traders@exchangetradedfundinvesting.com
