Investment Grade Rating
Earlier this month, Moody’s upgraded the sovereign credit to ‘Investment Grade’ with a ‘Positive’ outlook. The rating agency took into account “robust economic performance, ongoing fiscal and debt consolidation, political stability and improved governance” in determining the rating. S&P and Fitch had upgraded their rating on the country earlier this year.
Long-term fundamentals for the economy also look good in view of the stable political situation and the popular government that seems committed to accelerate the pace of reforms in the country. (Read: European ETFs–Surge in Popularity)
iShares MSCI Philippines Investable Market Index (NYSEARCA:EPHE)
Launched in September 2010, the product has managed to attract $302 million in assets so far. It holds 41 securities, mainly from the Financials sector. Industrials, Consumer Staples and Telecom also get double digit allocations. The fund charges an expense ratio of 65 basis points. It has returned about 5% year-to-date, compared with a negative return of 1.1% for the broader emerging markets ETF.
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