Notice two of these ETFs cover the Brazil and India small-cap segments. That may give them more upside potential, but it also an additional risk factor. Use caution if you buy the Market Vectors Brazil Small-Cap ETF (NYSEARCA:BRF) and the Market Vectors India Small-Cap ETF (NYSEARCA:SCIF).
How to Buy China — Without China?
In earlier columns, I outlined some recent encouraging developments in China. That giant economy’s global influence actually extends inside all the other emerging markets.
For example, the mineral-rich Andean nations like Chile and Peru ship copper and other minerals to China. In addition, their Pacific ports also export other ores and minerals to manufacturing facilities in China and elsewhere in Asia.
That means two ETFs on the list — iShares MSCI Chile Capped ETF (NYSEARCA:ECH) and iShares MSCI All Peru Capped Index ETF (NYSEARCA:EPU) — are a way to bet on China’s growth without even crossing the Pacific!
Likewise, lower-wage nations near China can also reap the benefit of Chinese recovery. Prime candidates include Market Vectors Indonesia Index ETF (NYSEARCA:IDX) and Market Vectors Vietnam ETF (NYSEARCA:VNM).
The ETFs I named this week are great candidates for any buying list — but don’t buy yet! Timing is everything. I believe the time will be here soon.
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