A quick glance at foreign stock ETFs will show you what’s happening around the globe.
Since the beginning of the year, emerging market stocks (NYSEArca: EEM) are up 27.20%, making them the best performing segment within the global equity market.
Certain regions of the world are doing better than others. European stocks (NYSEArca: VGK) are up 2.37%, stocks from the Pacific Rim (NYSEArca: VPL) are up 0.80% while Latin American stocks (NYSEArca: ILF) have soared 32.61%.
What are some general characteristics of country specific ETFs?
Most single country ETFs own less than 100 stocks within their portfolio, making them concentrated investments. Along with owning just a handful of individual stocks these types of funds are focused on narrow industry sectors. For example, the performance of the Market Vectors Russia ETF (NYSEArca: RSX) is closely tied to the performance of commodities, like crude oil and industrial metals. Also, country specific ETFs often carry higher annual expenses compared to more diversified foreign stock ETFs.
Single country ETFs offer big opportunities, so let’s evaluate 4 key funds: See full story for funds.