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Cimarex Energy Co (XEC)
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Vanguard FTSE Emerging Markets All Cap Index ETF (VEE)
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iShares S&P India Nifty 50 Index Fund (INDY)
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iShares MSCI Brazil ETF (EWZ)
Q: Hi there, do you have a view on any specific emerging markets (eg single countries) that are particularly investable right now? Ideally accessible via a targeted ETF. Thanks as always!
5i Research Answer:
Overall, we like the diversification benefits offered by emerging markets. At the current time, we consider the following to be decent tailwinds for EM: a relatively weaker US dollar (compared to 6 months ago or a year ago), continued economic momentum, and a valuation discount. We like India, Brazil, and China. We also think a diversified approach makes more sense here than single targeted countries. We would consider targeted ETFs like INDA/INDY, MCHI/KWEB, and EWZ, or diversified ETFs like VEE, XEC, and XEM/ZEM.