Two ETFs To Play Indonesia’s Appeal

As many investors seek to find the next emerging opportunity, the Asian nation of Indonesia may be the answer to their prayers.

According to Liem Denning of the Wall Street Journal, Indonesia is the next Brazil, which was the best performing BRIC nation over the past five years and is ripe for exponential growth.  A major driver behind Indonesia’s appeal is the fact that it is flush with natural resources.  The Southeast Asian nation is the world’s largest exporter of thermal coal and palm oil and has an ample supply of crude oil, natural gas, tin, copper and gold.  Read more of this post

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3 ETFs Influenced By India’s Inflation

Despite witnessing stellar economic growth over the past few years, rising prices could put a damper on India’s future and its exchange traded funds (ETFs).

In general, the global commodities market has witnessed a slight pull back over; however, commodity prices continue to remain elevated putting strain on the consumer. On the consumer side, this drastic increase in prices has been led by a surge in food prices which has been brought on by pure supply and demand forces. Although India is expected to witness a relatively decent annual rainfall building up short-term supply of food and agriculture-based products, weak storage facilities and infrastructure will likely negate any benefits that the nation could reap from increased production.  Read more of this post

India Infrastructure ETF Destined To Shine

India’s economy is growing at the second largest pace amongst the world’s major nations and is likely to continue to do so as the nation is abundant with an intelligent and young labor force.  Furthermore, this growth is shinning a ray of light on the nation’s infrastructure sector and boosting the appeal of the EGShares India Infrastructure ETF (INXX).

According to a recent article in The Wall Street Journal, numerous private equity firms have recognized this appeal and have turned their attention to the emerging market sector.  In fact, the article indicates that there were 48 private equity deals in infrastructure worth an estimated $3 billion last year, with another 38 infrastructure funds currently waiting to invest in India’s infrastructure.  Read more of this post

5 ETFs To Watch As China Grows

Despite a series of tightening monetary measures in 2010, China’s economy grew by an astonishing 9.8 percent in the fourth quarter pushing it ahead of Japan as the world’s second largest economy, while fueling concerns that more needs to be done to fight inflation.

According to Aaron Back and Jason Dean at the Wall Street Journal, China’s economy grew at an annual pace of 10.3 percent in 2010, crushing its 9.2 percent growth in the prior year.  Furthermore, China reported a 31 percent increase in exports and a 38 percent increase in imports as the Chinese economy demanded more raw materials, machinery and consumer goods from producers around the world.  Read more of this post

A New ETF To Play Gold’s Appeal

As the appeal for commodities, in particularly, gold continues to rise, ETF provider, ETF Securities recently announced another first-to-market ETF, the ETFS Physical Asian Gold Shares (AGOL).

AGOL is the first U.S. precious metals product to be vaulted in Asia as its custody will store all of its physical gold bars in secure London Bullion Market Association approved vaults in Singapore, as stated in its prospectus.  From an investment perspective, the objective of AGOL is to reflect the price performance of reflect the price performance of physical gold, less trust expenses, while carrying an expense ratio of 0.39%.  Read more of this post

9 ETFs To Play Currency Debasement

As developing nations continue to implement loose monetary policies, keep interest rates low and boost money supply, a nation’s debt and currency debasement should me of much concern. 

Most recently, a study indicated that the U.S. national debt has ballooned nearly 12 fold over the last 30 years.  Additionally, over this same time span the ratio of debt to GDP has gone from nearly one-third to 85%.  During this time of exploded debt, GDP has only expanded 5.3 times, indicating that debt is growing at twice as fast as the U.S. economy.  Similar trends have been seen in Europe, in particularly Greece, Spain and Portugal.

Some concerns of this exponential growth in debt include hyperinflation, as a result of printing more currency, a decline in the value of a nation’s currency, better known as currency debasement, and increased costs of borrowing, which make it difficult to chip away at deficits. Read more of this post

4 ETFs Impacted By China’s Increase In Bank Reserve Requirements

In an attempt to ease concerns and fears that rising inflation could damper economic growth, China raised bank reserve requirements for the third time in the last five weeks, influencing the Global X Financials ETF (CHIX), the iShares FTSE/Xinhua China 25 Index Fund (FXI), the SPDR S&P China ETF (GXC) and the Guggenheim China All-Cap ETF (YAO). 

The Chinese Central Bank raised the reserve requirement ratio by 50 basis points after earlier data showed a rise in property prices for a third straight month, an increase in both exports and imports, significant increases in M2 money supply and jumps in new lending by financial institutions despite government efforts to stem the flood of liquidity into the nation’s economy.  Read more of this post