Emerging Markets ETF’s Are The Only Place To Be In 2010

2010“Need a reason to buy the iShares MSCI Emerging Markets Indx (ETF) (NYSE:EEM) which has moved up 64% in 2009 or the Claymore/BNY Mellon BRIC ETF (NYSE:EEB)?  How about UBS head of Global Equity Strategy Jeffrey Palma who says “emerging markets are really the only place to be,” Frank Lara Jr. Reports From Wall St. Nation.

Palma predicts earnings growth in emerging economies will exceed that of developed nations by 10% in 2010. The story via Bloomberg.com today titled ‘Emerging Markets ‘Only Place to Be,’ UBS’s Palma Says is worth noting.

Emerging-market companies are the best stock investments for next year because earnings growth may exceed the expansion in developed nations by 10 percent, said Jeffrey Palma, the head of global equity strategy for UBS AG.

Technology, consumer staples and energy are the most attractive industries globally, Palma said. U.S. stocks will also gain as demand from faster-growing nations and a weaker dollar boost sales of consumer necessities, he said.

“Emerging markets are really the only place to be,” Palma, based in Stamford, Connecticut, said in an interview with Bloomberg Television. “The developed markets are really going to lag from a growth and an earnings standpoint.”

See The Full Story: HERE

Here is a closer look at the two Emerging Markets ETFs:

The investment (EEB) seeks results that correspond to the performance, before fees and expenses, of the Bank of New York BRIC Select ADR index. The fund seeks to replicate the performance of the BNY BRIC index which is comprised of American depositary receipts (“ADRs”) and global depositary receipts (“GDRs”) selected, based on liquidity, from a universe of all listed depositary receipts of companies from Brazil, Russia, India and China currently trading on U.S. exchanges. The fund normally invests at least 90% of total assets in ADRs and GDRs that comprise the index. It is nondiversified.

TOP 10 HOLDINGS (EEB) ( 55.68% OF TOTAL ASSETS)  
Company Symbol % Assets
Bank Bradesco ADR N/A 4.27
CHINA LIFE INS CO (LFC) 3.45
CHINA MOBILE LIMITED (CHL) 5.49
CNOOC LTD ADS (CEO) 3.34
Infosys Technologies Limited (INFY) 3.26
ITAU UNIBANCO ADS (ITUB) 5.86
Petroleo Brasileiro S.A. N/A 9.76
PETROLEO BRASILEIRO (PBR) 8.06
Vale S.A. N/A 6.96
VALE S.A. ADS (VALE) 5.23

The investment (EEM) seeks investment results that correspond generally to the price and yield performance of the MSCI Emerging Markets index. The fund generally invests at least 90% of assets in the securities of its underlying index or in ADRs and GDRs representing such securities. The index was developed by MSCI as an equity benchmark for international stock performance. It is nondiversified.

TOP 10 HOLDINGS (EEM) ( 23.64% OF TOTAL ASSETS)  
Company Symbol % Assets
Bank Bradesco ADR N/A 1.75
China Mobile Ltd. N/A 1.8
HDFC BANK LTD (HDB) 1.79
ITAU UNIBANCO ADS (ITUB) 2.7
KB FINL GP INC (KB) 1.75
Petroleo Brasileiro S.A. N/A 2.77
PETROLEO BRASILEIRO (PBR) 2.38
POSCO (PKX) 2.36
Samsung Electronics Co Ltd N/A 3.62
TAIWAN SEMICOND ADS (TSM) 2.72

 

Chart for iShares MSCI Emerging Markets Index (EEM)

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