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5 Emerging Market ETFs That Gained Big on Biden Inauguration

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Last week was marked with the U.S. Presidential Inauguration, Fed’s dovish comments, hopes of a fatter fiscal stimulus in the United States, China’s upbeat GDP data and the ECB’s promise to continue the accommodative approach. Meanwhile, COVID-19 vaccination is in full swing. While global stocks benefited overall from such moves, one investing area gained quite sturdily, i.e., emerging markets.

A host of fresh records in emerging-market stocks resulted in the fourth weekly gains last week, per Bloomberg. Chinese economic data showed that economic recovery in Asia has gained steam, though the future of U.S.-China trade relations is at risk as Biden begins his presidency.

China’s GDP grew 6.5% in the fourth quarter of 2020, after 4.9% growth in the third quarter. The metric also beat economists’ forecast of 6.1% growth, according to a Reuters' poll. Notably, the world’s second-largest economy recorded economic growth of 2.3% in 2020. No wonder, Chinese equities staged a rally last week (read: China ETFs Ruling 52-Week High Chart on Impressive GDP Data).

 Thailand’s exports jumped in December by 4.71%, beating economists’ estimate of a 1.35% contraction. Indonesia’s central bank Governor Perry Warjiyo said it has more room for monetary policy easing. The country is also on its way to eliminate energy, communications and tourism from a list of sectors that have been so far barred from foreigners, per Bloomberg. If this was not enough, Indonesia’s government intends to immunize all 181.5 million people in its COVID-19 vaccination program by the end of 2021.

Turkey reported solid demand for its first Eurobond sale of the year, raising $3.5 billion via a two-part offering of dollar-denominated securities, the Bloomberg article noted. Apart from this, commodity investing is in fine fettle amid broad-based economic recovery taking place. This should prove favorable for commodity-rich emerging economies.  

Against this backdrop, below we highlight a few emerging market ETFs that gained a lot last week. These ETFs easily beat the S&P 500 (up about 1.9%) easily.

ETFs in Focus

Emerging Markets Internet & Ecommerce ETF (EMQQ - Free Report) ) – Up 9.2%

The EMQQ The Emerging Markets Internet & Ecommerce Index is designed to measure the performance of an investable universe of publicly-traded, emerging market internet and ecommerce companies. It charges 86 bps in fees (read: Top-Performing E-Commerce ETFs & Stocks of 2020).

Invesco S&P Emerging Markets Momentum ETF (EEMO - Free Report) ) – Up 7.4%

The underlying S&P Momentum Emerging plus LargeMidCap Index tracks the performance of stocks in the S&P Emerging plus LargeMidCap Index that have the highest momentum score. It charges 29 bps in fees.

KraneShares Emerging Markets Consumer Technology ETF (KEMQ - Free Report) ) – Up 6.4%

The underlying Solactive Emerging Markets Consumer Technology Index is composed of the equity securities of the 50 companies with the largest market capitalization that are headquartered in emerging market countries and focuses on issuers engaged in the consumer sectors. It charges 61 bps in fees.

Xtrackers MSCI Emerging Markets ESG Leaders Equity ETF (EMSG - Free Report) ) – Up 4.3%

The underlying MSCI EM ESG Leaders Index is a capitalization-weighted index that provides exposure to companies with high Environmental, Social and Governance performance relative to their sector peers. IT charges 20 bps in fees (read: Emerging Markets Hit Record High: 5 Top-Performing ETFs YTD).

Columbia Emerging Markets Consumer ETF (ECON - Free Report) ) – Up 4.2%

The underlying Dow Jones Emerging Markets Consumer Titans Index is a free-float market capitalization-weighted index that measures the performance of 60 leading emerging market companies in the Consumer Discretionary, Consumer Staples, and Communication Services sectors. It charges 59 bps in fees.

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