Fragile Five ETFs Not At All Fragile This Year ?

This once-woebegone economy is also sending positive vibes on the economic front. Notably, the country has attracted the largest annual foreign direct investment in 2015 since the global financial turmoil.

Notably, slumping oil prices are vital to the Turkish economy as the country imports more than 90% of oil for about 70% of its total energy needs. Added to this, interest rates cut in February to boost economic growth also favored the Turkey ETF.

TUR is up about 14.2% in the year-to-date frame and added about 9.8% in the last one month (as of March 23, 2016). However, the Turkish economy is fraught with political risks, inflationary pressure and currency woes. The fund has a Zacks ETF Rank #4.

India – India Earnings Fund (EPI)

While almost all India ETFs were in the green in the last one-month frame (as of March 23, 2016), we are representing the country with EPI. The fund was up 12.7% in the last one month, but has lost 3.9% so far this year (as of March 23, 2016).

The reduction in its current account deficit and above-average growth prospects (as the government is exhibiting its reforms plan) are the key drivers of India ETFs. "The real estate Bill, the new Hydrocarbon Exploration Licensing Policy, the Bill to amend the Companies Act and the proposed introduction of the bankruptcy code” made analysts optimistic about this country. EPI has a Zacks ETF Rank #3 (Hold) with a High risk outlook.

Indonesia – iShares MSCI Indonesia Investable Market Index Fund (EIDO

Indonesia is benefiting from policy easing as the country’s central bank has slashed its key interest rate for the third time this year to boost its waning economy. Most recently, the bank cut its benchmark interest rate by 25 basis points to 6.75% after enacting equal-measured cuts in February and January.

As a result, Indonesia ETF EIDO added about 5.9% in the last one month and is up 11.2% in year-to-date frame (as of March 23, 2016). The fund has a Zacks ETF Rank #3 with a High risk outlook.

South Africa – iShares MSCI South Africa (EZA)

The South Africa ETF – EZA – has added about 12.1% so far this year (as of March 21, 2016). South Africa is a commodity-rich nation. Since the greenback was in shambles at the start of the year, commodity prices, especially metals, went up as most of these are priced in U.S. dollars.

Plus, South African Reserve Bank hiked interest rates in mid March by 25 bps to 7% which benefitted the bank stocks to a large extent. In the last one month (as of March 23, 2016), the fund gained 12.5%.

Still, the fundamentals of the economy are far from strong. EZA has a Zacks ETF Rank #5 (Strong Sell) with a High risk outlook.

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