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    Why Brazil ETFs and Australia ETFs Will Forecast The Return of Global Growth

    Mon, 06/28/2010 - 16:04 EDT - Seeking Alpha
    • EWA
    • EWZ
    • Gary Gordon

    gary gordonGary Gordon submits: On the surface, the last Monday in June has been no different than the other trading days in the first half of 2010. Investors have been dumping energy and materials ETFs; what’s more, they’ve been getting rid of country ETFs that depend heavily on the energy or materials sectors. Sector ETFs In The First Half Of 2010 (Through 6/28) 6 Month Approx % Industrials Select Sector SPDR (XLI) 2.4% Consumer Discretion Select SPDR (XLY) 2.0% Financials Select Sector SPDR (XLF) -0.1% Consumer Staples Select SPDR (XLP) -1.3% Technology Select Sector SPDR (XLK) -6.3% Utilities Select Sector SPDR (XLU) -6.6% Health Care Select Sector SPDR (XLV) -7.3% Materials Select Sector SPDR (XLB) -9.9% Energy Select Sector SPDR (XLE) -12.2% S&P 500 -3.8% Country ETFs Heavily Dependent On Materials Or Energy (Through 6/28) 6 Month Approx % iShares MSCI Chile (ECH) 7.1% iShares MSCI South Africa (EZA) -0.4% iShares MSCI Canada (EWC) -0.6% Market Vectors Russia (RSX) -4.8% iShares MSCI Brazil (EWZ) -10.2% iShares MSCI Australia (EWA) -10.8% However, the reason that investors began selling energy and materials ETFs early in the year differs from the reason that they’re selling today. In the beginning of the year, for example, China’s tightening policy caused many to worry that demand for metals, minerals and oil might wane. Yet China has since shown that it is guiding its economy to a picture-perfect landing.Complete Story »

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