Emerging Market ETFs are an excellent alternative for those interested in investing in countries that have broad development potential but are not among the world’s leading economies. This category includes countries from all continents of the world. To get an idea, take a look at the updated list of the MSCI Emerging Markets Index, which in 2016 includes Brazil, Chile, Colombia, Mexico, Peru, the Czech Republic, Egypt, Greece, Hungary, Poland, Qatar, Russia, South Africa, Turkey, the United Arab Emirates, China, India, Indonesia, South Korea, Malaysia, the Philippines, Taiwan and Thailand. ETF-type investment funds can be traded on the market in the same way as equities. Below you will find general information on this category of ETFs, as well as information on how to trade on Emerging Country ETFs through CFDs.
Best Emerging Country ETFs
Although there are countries that over the years are proving to be fairly steady in growth, it is difficult to define which the Best Emerging Country ETFs are. This sort of “Top Rank” is elaborated and updated every year, based on many factors, among which are very complex. However, the results are published and consulted online on various specialized websites, as well as on the pages of the most important ETF managers. The Qatar, UAE, India ETFs are certainly to be taken into consideration first. For others, it is necessary to make a yearly evaluation based on financial events. For example, ETFs in China and Russia have shown difficulties due to the price of oil (Russia) and the stock market (China).
Emerging Country High Dividend ETFs
Among the Emerging Markets ETFs to be taken into account are also those with a high dividend. In fact, it should be noted that ETFs, just like shares, have an annual dividend payment. The amount of the dividend, in the event that CFDs are traded upwards, will result in the crediting of a premium on the available capital, compared to the leverage applied at the time of opening. Note that the premium credit will be negative if the open position is of the “sale” type, i.e. downwards. The list of dividends of ETF Emerging Countries can also be viewed on the website of Borsa Italiana.
How to trade with Emerging Countries ETFs
As mentioned in the introduction of this page, you can trade online with Emerging Countries ETFs through CFDs. CFDs are an excellent alternative to traditional ETFs as they are more practical, cheaper, and allow you to trade from home or from a mobile device. For those who prefer to operate in the traditional way, can proceed through the classic subscription, starting from the consultation of the site of the fund manager. In our course on CFDs, we highlighted that these are financial instruments that passively replicate the price of an underlying asset. Emerging Market ETF CFDs, therefore, will see a price equal to that of the underlying Emerging Market ETF to which a small percentage of the spread will be added. The spread is the only form of profit for the broker for its services. CFDs are leveraged instruments and this allows you to trade on a much larger number of ETFs than you could do with traditional methods for the same budget. For CFD trading, you can also trade with very small amounts of capital. With the trading of CFDs offered by Plus500, the operational risk is limited to the deposited capital. We recommend that you consult our article dedicated to the Stop Loss order, which will allow you to reduce this risk to a minimum. In fact, through Stop Loss orders you can easily set a maximum loss percentage by ordering the trading platform to automatically close the position when it exceeds a certain threshold of loss set. Below are the articles dedicated to specific Emerging Country ETFs, with their respective real-time charts of CFDs to trade with from your device.
- IShares Emerging Markets
- Direxion Daily Emerging Markets Bull
- Ishares MSCI ACWI Index
- Vanguard MSCI Emerging Markets