Most emerging market equity portfolios are benchmarked to the MSCI Emerging Market index.
If you were investing directly in the MSCI Emerging Market Index via a fund or ETF, you would be reinvesting those dividends over the 18 months.
The price ratios of MSCI Emerging Market index stocks and MSCI World Equity are converging, meaning lower beta equity prices are moving in line with higher beta.
FORBES: Bear Or Bull? Last Week's Stock Uptrend Unlikely To Last
As the chart above indicates, the relative performance of the iShares MSCI Emerging Market Index versus the Spyder Trust reveals that EEM started to outperform SPY late last month.
FORBES: The Week Ahead: No Budget and $112 Crude Oil, But Who Cares?
Emerging markets overall declined less than those in the United States and while the iShares MSCI Emerging Market Index ( EEM) pulled back 3.7% from its recent highs, some of the emerging-market country ETFs held up much better.
FORBES: The Week Ahead: Stocks to Rally Despite the Short Week
One piece of data worth noting, other than the fact that equity investments are piling out of advanced Europe: U.S. equities, despite outperforming the MSCI Emerging Market index by far, are not seeing the same kind of flow.
FORBES: Some Fund Flow Leaving Europe, Heads To Emerging Markets
When considering global market cap, which measures where most of the liquid and rich corporate equity is based, the 22 nations that make up the MSCI Emerging market index accounted for 24% of market cap in 2009, up from 18% in 2008.
He holds emerging market equities through the Vanguard MSCI Emerging Markets Index (VWO) ETF and emerging market local currency bond funds.
FORBES: As US, EU Sink, Investors Not Convinced On Emerging Markets
Next, we need to remember that the note is based on the MSCI Emerging Market (Price) Index which excludes the dividends.
On the equity side, compared to the benchmark MSCI Emerging Markets index, global emerging market equity funds were underweight, in order of less weighting, Brazil, China and Russia, and slightly overweight India up to June 11, according to EPFR Global and Barclays.
Suppose, for instance, that you decide to invest in an exchange-traded fund that mirrors the MSCI Emerging Markets Index, which measures equity market performance in 26 emerging economies.
Since July, emerging-market shares have been a disaster, falling 50%, as measured by the MSCI Emerging Markets Index, worse than U.S. stocks.
The MSCI Emerging Markets (EM) Index is designed to measure global emerging market equity performance.
FORBES: Investor Fears Exceed Actual Risks: 2013 Is Full Of Opportunities
Emerging markets could also open higher, with the MSCI Emerging Markets (EEM) index up 0.61 percent in the pre-market.
Emerging market currencies have increased 5% on average versus the dollar year-to-date and emerging market equities are up over 11% in dollar terms on the MSCI EM index.
The Market Vectors Russia (RSX) has been outperforming its peers in the MSCI Emerging Markets index over the last four weeks.
This fund has competed directly (and taken market share from) the iShares MSCI Emerging Markets ETF ( EEM) on the same index.
The U.S. equity market has done almost as good as the wilder and higher beta stocks in the MSCI Emerging Markets index.
应用推荐