Exploring Investment Opportunities In Peru

As the world fights hard to control global economic downturn and volatile markets more and more investors are now seriously considering investment options in emerging economies that can offer a much better return to their investments both in the short as well as the long term. Since most investors have already been looking at emerging economies for a long time, the most talked about emerging economies like BRIC nations have also been over invested and overheated. With the global population of the planet increasing by the day, it makes much more investment sense to look at nations with Commodity based economies rather than just investing in emerging economies as a fad.

Arguably one of the most important commodity based economies after Chile is the Latin American nation of Peru. Peru's government can definitely take a leaf out of Chile's book by offering more incentives by opening up and showcasing a cleaner and an investment friendly environment. If Peru can manage its policies accordingly, there is a potential for a lot of global investment in this Andean nation.

Peru is a country that features practically all of the planet's climates, with remarkable natural, mining, and power resources. According to FAO figures, Peru, the third largest country in South America has 7.6 million hectares with immediate agricultural potential, but less than 3.6 million are actually used. This paves the way for a good Agriculture based commodity segment as an investment opportunity.

The country’s top exports apart from Agriculture products include copper, gold, zinc and crude oil. Furthermore, the country’s Ministry of Energy and Mines estimates that only a 10% of the overall national territory with mining potential has been explored so far.

Peru is a member of the Asia Pacific Economic Cooperation (APEC), which facilitates the mechanism development of the economic-trade cooperation with other 20 powerful economies. Peru is, likewise, is one of the 5 country members of the Andean Community of Nations, which has more than 120 million inhabitants and an overall GDP of around US$ 300.00 billion.

• Peru ranks fifth worldwide in gold production (first in Latin America), second in copper, and is among the top 5 producers of lead and zinc.

• Peru has also signed agreements for the promotion and protection of investments (BIT) with 29 countries of Europe, Asia and Latin America

• Around 8 million hectares are suitable for agricultural farming, 18 million hectares for pasture and 49 million hectares for sustainable forest activities (besides 54 million hectares of protection lands).

• Peru is the leading exporter of asparagus and paprika in the world, the leading producer of fishmeal, oil, Alpaca and Vicuña fibers and is also the leading producer of silver worldwide.

Investing In Peru:

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Hang Seng BeES ETF: India's First International ETF

The fixation of investing in Chinese markets with as low as Rs.10,000 combined with the growing popularity of Exchange Traded Funds (ETFs) marked the launch of the Hang Seng Benchmark Exchange Traded Scheme (NSE Symbol-HNGSNGBEES) in February this year. The fund is the brainchild of Benchmark Asset Management Company India Pvt. Ltd, which carved a niche for itself in the Indian Mutual Fund Industry by successfully launching first ETF in Asia (not only India) Nifty BeEs. The company is also credited with launching the Gold ETF first time in India.

The Benchmark's open-ended ETF tracks Hong Kong's Hang Seng index, one of the oldest and among the most popular indices on the Hong Kong stock exchange. The index currently comprises 42 stocks and can have a maximum of 50 stocks. The ETF, which is also investing in mutual funds, or ETFs that track the Hang Seng Index themselves, is the first international ETF to have emerged out of India.

The daily net asset value (NAV) of a single unit of the fund is arrived at, by calculating the daily Hang Seng index close multiplied by the currency rate of Hong Kong dollar-Indian rupee and divided by 100.


Management Of The Hang Seng BeES ETF

Name of Company: Benchmark Asset Management Co Pvt. Ltd.
Phone: 91-22-66512727
Website: benchmarkfunds.com
Address: 405,Raheja Chambers,
Mumbai 400 021
India

Inception Date: 15/03/2010
Fund Advisor(s): Benchmark Asset Management Co Pvt. Ltd.
Fund Manager: Vishal Jain
Manager Start Date: 15/02/2010
Fund Manager: Payal Kaipunjal
Manager Start Date: 15/02/2010

Top 5 Holdings Sector %

HSBC Holdings PLC Financial Services 13.70
China Mobile Ltd. Telecommunications 8.87
China Construction Bank Financial Services 7.08
Industrial And Commercial Bank O... Financial Services 6.23
China Life Insurance Company, Ltd. Financial Services 5.11




The Hang Seng Stock Exchange:

Hang Seng Stock Exchange is one of the largest exchanges in the world. Hang Seng Index Charts, Hang Seng Futures, Hang Seng Historical Data are now determined and tracked on a real-time basis by Indian investors.



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Mexico Investment Guide: Mexican Stocks And ADRs

Mexico was in the international headlines for all the wrong reasons last year after the deadly outbreak of the H1N1 flu virus that sparked a global pandemic closing schools and businesses for two weeks in the country. The outbreak not only resulted in a big drop in tourism revenue of Mexico but also came as a major blow to the Mexican economy that had been already gripped by the effects of the global financial crisis. Mexico's capital market activity has hence slowly picked up from the lows of 2009 and is slowly but surely moving towards an economic resurgence. Testimony to the fact is that the Mexican economy has rebounded in the first quarter of this year, expanding more than 4 % from a year earlier after contracting 2.3 % in the last three months of 2009. With as many as six Mexican companies looking to go public this year, a rise in the Mexican IPO activity might just be the catalyst for speeding up the country's economic growth. Private-sector economists believe that Mexico is likely to grow at 4.2 % this year resulting in a strong rally in the BMV’s benchmark IPC index, which hit an all-time high of 34,134 points on April 15. During the past 12 months, the index has gained almost 50 % in value.

Before discussing the possibilities of investing in Mexico or including Mexican stocks in your investment portfolio, its important to understand the new dynamic changes at the Bolsa Mexicana de Valores or the Mexican Stock Exchange after it successfully offered its shares to the public and became a listed company on 13 June 2008. More than 13,600 individual investors bought shares in the IPO, making BMV a widely held public company. BMV (the company) trades on the Mexican Stock Exchange under the ticker code BOLSAA for it’s A shares. BMV is an actively traded stock, and from 1 February 2009 its A shares were included in the BMV's own IPC index of the top 35 Mexican stocks for the first time.


Overview Of The Mexico Stock Exchange:

The Bolsa Mexicana de Valores, also referred to as BMV or the Mexican Stock Exchange, is the chief stock exchange in Mexico. Located in Mexico City at Paseo de la Reforma, BMV is a private limited company. Shareholders of Mexico's stock exchange are all brokerage firms. BMV trades in debt instruments such as CETES (Federal Treasury Certificates); investment unit bonds, BONDES (federal government development bonds); Bankers acceptances, development bank bonds, warrants, debentures, stocks, mutual fund shares and so forth. The BMV-SENTRA Equities System allows for trading to take place electronically.

The Mexican Stock Exchange deals with 13 indices of stock prices. The IPC or Índice de Precios y Cotizaciones is the benchmark stock index and is the widest indicator of the stock market's complete performance. A number of companies are listed with the Bolsa Mexicana de Volores. Amongst the top companies on Mexico's Stock Exchange are Cemex (cement maker); América Móvil (wireless communications); Telmex (telecommunications); Televisa (media) and Grupo Corvi (consumer products distribution).

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Investing In Mexico: The Vibrant Latin American Economy

For years the most prominent feature of Mexico has been its exotic cuisine with all its varied flavors, colorful decoration, and variety of spices while investment options were never taken seriously. Investors for long have viewed other Latin American economies like Brazil and Argentina with more interest discussing plans possibly sitting in a restaurant serving Mexican cuisine. While Mexico doesn't quite enjoy the celebrity status of rival Brazil, there is no denying the fact that the country is undergoing something of an economic renaissance. With its last financial crisis more than 10 years behind it, Mexico is enjoying record foreign currency reserves and an investment-grade debt rating, thanks to much-improved fiscal discipline. It even boasts several companies listed on the New York Stock Exchange or NASDAQ and dozens of others that trade over the counter. Money managers are especially keen on stocks in the residential construction business as more and more Mexicans qualify for loans to build their own homes.

• The Mexican economy rebounded in the first quarter of this year, expanding more than 4 % from a year earlier after contracting 2.3 % in the last three months of 2009.

• Mexico’s international reserves reached a record $95.7 billion in March. The oil and manufacturing sectors are showing strong improvements and Mexican exports increased by 39% in March relative to March 2009.

• The automotive industry, one of the most important industries in the country, is recovering strongly with production and exports up in the first four months of this year. The unemployment rate in the first quarter stood at 5.3%.

• Rich in farmland, silver and copper, Mexico is the world’s 11th largest economy and is known for being a free trade economy that is heavily geared towards exports. Mexico’s trade is based on free trade agreements with more than 40 countries, including Japan, Israel, EU and various Central and South American countries.

• Mexico provides security and legal protection for foreign investors through Bilateral Investment Treaties (BIT’s) negotiated with 24 countries and a skilled and competitive labor force.

Mexico’s peso has been a major gainer against the dollar in recent weeks as an economic recovery in the U.S. fuels demand for the Latin American nation’s exports. Mexico’s economy is looking at a 5% growth rate as it recovers from the recession this year. The official forecast is set at 4.1%. With as many as six Mexican companies looking to go public this year, a rise in the Mexican IPO activity might just be the catalyst for speeding up the country's economic growth. There are a number of ways to include Mexico in your investment portfolio. Here is a list of some the best performing Mexican ETFs.


Top 7 ETFs To Invest In Mexico

MSCI Mexico Index Fund (EWW): The index measures the performance of the Mexican equity market.

EWW Top Ten Holdings

1. America Movil S.A.B. de C.V. (AMXL): 23.66%
2. Wal-Mart De Mexico SAB de CV (WALMEXV): 9.09%
3. CEMEX SAB de CV (CEMEXCPO): 6.62%
4. Grupo Mexico, S.A.B De C.V (GMEXICOB): 4.94%
5. Grupo Televisa SA (TLEVISACPO): 4.67%
6. Fomento Económico Mexicano, S.A.B. De C.V. (FEMSAUBD): 4.67%
7. Telmex Internacional S.A.B. de C.V. (TELINTL): 3.74%
8. Grupo Financiero Banorte, S.A.B De C.V. (GFNORTEO): 3.61%
9. Telefonos de Mexico,S.A.B. de C.V. (TELMEXL): 3.34%
10. Carso Global Telecom (TELECOMA1): 3.12%

Expense Ratio: 0.52%

EWW Sector Breakdown

Telecom 34.88%
Industrial Materials 21.21%
Consumer Goods 13.59%
Financials 11.48%
Consumer Services 10.25%
Media 5.09%
Business Services 2.82%
Health Care 0.39%

Mexico Fund Inc. (MXF): The Mexico Fund, Inc. (the Fund) is a closed-end, non-diversified management investment company. The Fund's investment objective is to seek long-term capital appreciation through investment in securities, primarily equity, listed on the Mexican Stock Exchange. The Fund may invest in Mexican fixed-income securities and bank time deposits of Mexican banks.

Top 10 Holdings

America Movil, S.A.B. de C.V. 19.23%
Wal-Mart De Mexico SAB de CV 10.46%
Grupo Mexico SA De CV Gmexico 7.54%
Grupo Televisa SA 4.99%
Fomento Económico Mexicano, S.A.B. De C.V. 4.21%
Kimberly Clark de Mexico SA de CV 4.04%
GPO BIMBO SAB 3.75%
Cemex S.A. 3.74%
Mexichem, S.A.B De C.V 3.74%
Grupo Financiero Banorte, S.A.B De C.V. 3.33%


Total Expense Ratio: 1.72

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The Colombian Growth Story: From Rampant Violence To Investments

As allegedly reported by the media and with a common perception of being a nation of rich in drug peddling, abductions and murders, the Republic of Colombia has undergone a remarkable transformation over the past decade. Colombia has been fighting to prove that it is a safe and worthwhile investment destination and has now put itself firmly back onto the investment map. Transforming itself from the Drug capital of the world to a nation attracting strong foreign investment in recent years, Colombia's strong fundamentals stand out. Not only has Colombia been recognized as one of the best pro-business reformers globally in recent years by the World Bank, the country's $130 billion economy, a world leader in the production of coffee, petroleum, textiles, and flowers, is growing at 6.8% a year, two full points faster than the Latin American average. Colombian economy has experienced tremendous growth, benefiting from a commodity boom and sound policies that stimulated growth. The Colombian economy is arguably the largest in Latin America after Brazil, Mexico and the forever in transit economy of Argentina, with one of the largest deposits of oil and natural gas deposits in Latin America.

The lush green tropical jungle country of Colombia has one of the largest deposits of green gem emerald mostly exported to jewelry producing nations. Named after Christopher Columbus by the South American liberator Simon Bolivar, the modern day Colombia continues to be a dark spot on their investment horizon or some investors. Even though, the country's notorious past acts as a speed breaker preventing foreigners from investing in this Latin American nation, the fact is that every indicator of violence in Colombia including homicides, kidnappings, and acts of terrorism have declined significantly over the past eight years.

• Terrorist acts are down 84% from 2002.
• Homicides have dropped 45 percent from 2002 through 2009 – the lowest homicide rate in 22 years.
• Kidnappings have dropped significantly, down 88% from 2002, also now at the lowest rate in 22 years.
• Today Colombia has a lower violent crime rate than many major U.S. cities.

Far from being a dangerous place to even visit, leave alone considering any thoughts of investment, Colombia is slowly but surely transforming itself into a Latin American success story with its free-market approach to its economy.

• According to Bloomberg data, Colombia is forecast to attract about $10 billion in foreign direct investment this year, up from about $7.5 billion last year.
  

• Colombia's stock market has increased 14-fold since 2001 with a still modest total capitalization of $59 billion.
  

• Colombia is seen as a trustworthy ally by the United States amid its deteriorating ties with Venezuela and Ecuador. The U.S. has sent $5 billion in aid to Colombia since the year 2000 making it the 4th largest financial aid recipient of the U.S.

• In the past 10 years, Colombia has slashed its inflation rate from 18% to 5%, and since President Alvaro Uribe was elected in 2002, unemployment has dipped from 16% to 13%.

• Not only has Columbia been the best performing stock market this year, posting a double digit gain as opposed to all major markets that are down for the year, Colombia has blown away all challengers over the last decade posting an 34.5% annualized return.

• Colombia has abundant natural resources, including gold, silver, copper, coal, oil, gas, and more, a good deal of which remains under explored. Global gold mining companies are likely to invest as much as 4.5 billion U.S. dollars over the next ten years in Colombia attracted by rich unexplored regions and soaring prices of the commodity.

The Colombian Stock Exchange: The Colombian stock exchange or the Bolsa de Valores de Colombia, also known as Bolsa de Valores (BVC), is the principal stock exchange of Colombia. It was created on July 3, 2001 by the union of three extant stock exchanges in Colombia: Bogota Stock Exchange (Bolsa de Bogota), Medellín Stock Exchange (Bolsa de Medellin)and Cali's Western Stock Exchange (Bolsa de Occidente). The company maintains offices in Bogotá, Medellín and Cali.


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Investing In Turkish Economic Delight

For a number of years, Istanbul has been given the cold shoulder with respect to it joining the elite European Union club and there were feelers that Turkey was believed to be too economically backward to qualify for membership. A visit to Turkey today can clearly suggest that the old argument no longer holds good as modern day Turkey is a fast-rising economic power, with a core of internationally competitive companies turning the youthful nation into an entrepreneurial hub, tapping cash-rich export markets in Russia and the Middle East while attracting billions of investment dollars in return. So complete has been Turkey's transformation that about 10 years ago, Turkey which had a budget deficit of 16% of gross domestic product and inflation of 72% is now fulfilling European Union’s fiscal guidelines of a 60% ceiling on government debt, at 49% of GDP, and could well get its annual budget deficit below the 3% benchmark next year.

The Republic of Turkey borders the Mediterranean Sea and its strategic location between Europe and the Middle East brings potential economic benefits. Turkey has a unique economy and a potentially attractive risk and return profile. Turkey, situated at the crossroads where two continents meet, is an ideal center for investors looking for a location at the heart of Euro-Asia. With its dynamic and growing economy, huge market, competitive and skilled labor force, Turkey offers numerous opportunities to international investors.

• With a population of 73 million with an average age of just 27.7 years, Turkey has a very young population and an increasing consumer purchasing power; Turkey offers a huge and dynamic domestic market to investors. Moreover Turkey's economy has witnessed a growth of an average of nearly 6% between 2002 and 2008.

• Unlike other emerging markets in Europe, Turkey survived the financial downturn without relying on an emergency bailout package from external lenders. The country now is expected to grow 3.5% to 4% this year.

• Turkey is located at the gateway of the Middle East, Caspian petroleum and Central Asian natural gas to the west, which are regarded as the future energy reserves of the world.

• In an encouraging sign, Standard & Poor's raised its long-term foreign currency and local currency sovereign credit ratings to BB and BB+, respectively in February this year.

• IMF projections for the period 2008-2013 suggest that Turkey would maintain the title of the world’s 17th largest economy until 2013 with gross domestic product reaching $968.2 billion in 2013

• The Istanbul Stock Exchange’s ISE-100 Index; hit all-time in-session record high at 60,410.11 points earlier this week. The record-breaking performance was attributed to the positive atmosphere in the global markets, positive expectations on European bank stress tests, the possibility of an increase in Turkey’s sovereign credit rating and most of all, foreign investor interest in the bourse.

ETFs Investing In Turkey


1: iShares MSCI Turkey Investable Market Index Fund (TUR) : One of the best ways for U.S. investors to make a play on Turkey is through the iShares MSCI Turkey Investable Market Index Fund (TUR). The fund tracks the MSCI Turkey Investable Market Index, which measures the performance of the Turkish equity market. TUR is heavily focused on financials, which make up 52% of total assets. Additionally, the fund makes large allocations towards the industrial materials (13.6%) and telecommunication (10.4%) sectors.

TUR Top Ten Holdings
1. Turkiye Garanti Bankasi (GARAN): 14.50%
2. Akbank T.A.S. (AKBNK): 9.53%
3. Turkiye Is Bankasi C Share (ISCTR): 8.09%
4. Turkcell Iletisim Hizmetleri AS (TCELL): 6.60%
5. Haci Omer Sabanci Holding A.S. (SAHOL): 4.07%
6. Anadolu Efes Brewery ve Malt Sanayi A.S. (AEFES): 3.91%
7. Yapi Ve Kredi Bankasi (YKBNK): 3.90%
8. Turkiye Halk Bankasi A.S. (HALKB): 3.83%
9. Bim Birlesik Magazalar A.S. (BIMAS): 3.81%
10. Tupras-Turkiye Petrol Rafineleri A.S. (TUPRS): 3.77%

TUR Sector Breakdown
Financials 53.15%
Industrial Materials 13.63%
Telecom 9.47%
Consumer Goods 7.13%
Consumer Services 4.58%
Energy 3.99%
Business Services 3.14%
Media 1.25%
Utilities 1.22%
Hardware 1.02%
Health Care 0.62%

Expense Ratio: 0.63%

TUR Performance
52 Week Return: 43.28%
YTD Return: 13.62%
1 Week Return: 4.61%
2 Week Return: 7.29%
4 Week Return: 10.64%
13 Week Return: -1.95%
26 Week Return: 8.43%

2: SPDR S&P Emerging Europe ETF (GUR): The S&P European Emerging BMI Capped Index is a market capitalization weighted index that defines and measures the investable universe of publicly traded companies domiciled in emerging European markets. The fund has 16.49% holdings in Turkey.


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Tracing Investment Opportunities In Egypt

When we speak of Egypt, the first thing that comes to mind is the images of the Great Pyramid at Giza, the Nile Delta and the ancient Egyptian civilization. Far from being a civilization located on both sides of the river Nile, the modern day Egypt is the most populated country in the Middle East and the third most populous on the African continent. Despite technically considered part of geo-economic area called Middle East Egypt lies in the continent of Africa and its per capita GDP is below the global average, trailing behind other emerging markets such as Brazil, South Africa, China, but ahead of India. Egypt’s economy is much more diversified than many in the region. Oil and gas make up only about 15% of the country’s GDP, compared to as much as 50% for many oil rich states. In addition to a strong financial sector, tourism, agriculture and industrials account for significant portions of GDP.

Investors wanting to invest in the growing Egyptian economy can do so via the Van Eck Global launched the Market Vectors Egypt Index ETF which is the first US traded Egypt ETF. The fund launched on 18th February 2010, invests in 28 companies that derive at least 50 percent of their revenues from Egyptian operations. The fund comes with a price tag of 0.94 percent. EGPT is the latest off-the-beaten-path country ETF from the fast-growing Van Eck, which recently launched ETFs tied to Poland, Indonesia and Vietnam as well. EGPT follows the Market Vectors Egypt Index, providing exposure to publicly traded companies that are domiciled and primarily listed on an exchange in Egypt or that generate at least 50% of their revenues in Egypt. The Egypt ETF has a heavy weight in the financials (42%) and industrial materials (31%) sectors, a common occurrence among large cap-focused emerging markets ETFs

EGPT: Sector Breakdown

Financials 42%
Telecommunications 17%
Industrials 16%
Materials 14%
Energy 4%
Consumer Discretionary 3%
Consumer Staples 2%


EGPT: Top Ten Holdings

Commercial International Bank 8.48%
Orascom Construction 8.44%
Orascom Telecom Holding 6.81%
EFG-Hermes Holding 6.60%
Mobinil-Egyptian Mobile Serv 5.88%
Egyptian Kuwaiti Holding 5.77%
TMG Holding 5.39%
Elswedy Cables Holding 5.13%
Al Ezz Steel Rebars 5.02%
Telecom Egypt 4.59%

Egyptian Stock Market

The EGX 30 is the main index of the Egyptian exchange. The EGX 30 is comprised of the 30 largest stocks traded on the exchange, and is quoted in U.S. dollars. A total of 179 stocks were listed on the Egyptian exchange in early 2010 and another 27 were trading over-the-counter. Regarding market capitalization, Egypt is the second biggest African market after South Africa. Many stocks are very liquid and can be traded easily and with low transaction cost. Foreign participation is still quite low, as it is in most other African markets.

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Investing Options In Indonesia: Asia's Best Peforming Index

Asia is home to several emerging and globalizing powers, including India and China but one nation that stands out but is not largely covered in the business media is Indonesia. Little is known about Indonesia in the investing circles despite being a country made up of some 17,000 islands, which is now the 4th most populous nation in the world. One striking feature that highlights Indonesia's growth in recent years is the fact that the country has managed to avoid recession during the global downturn, unlike some of its more export-reliant neighbors. Over the last decade, Indonesia has emerged as a vibrant and plural democracy. Its economy is buoyant and a new sense of confidence is evident both within its political leadership as well as its growing civil society. Indonesia is the largest Muslim country in the world, but the Islam practiced by the vast majority of its people is liberal, tolerant and accommodative.

• The International Monetary Fund (IMF) projects Indonesia’s economy will expand 6% this year. The Chairman of Indonesia’s Investment Coordinating Board estimates growth of between 6% to 7%.

• The nation’s shares have climbed 12 percent this year and are Asia’s best performers barring Mongolia and Bangladesh, as foreign funds increased purchases after the central bank raised its growth forecast and Standard & Poor’s upgraded the nation’s sovereign debt ratings.

• Foreign investors moved more funds to Indonesian stocks in March, buying a net 4.92 trillion rupiah ($543 million) of shares after selling 1.58 trillion rupiah in the first two months this year, according to data from the Jakarta stock exchange.

• The Indonesian rupiah has risen 3.6 percent this year, the second-best-performing currency in Asia, according to data compiled by Bloomberg. A strong rupiah and low inflation have helped the central bank keep its key interest rate at a record low of 6.5 percent to support Southeast Asia’s biggest economy.

• Indonesia's stock market index, the Jakarta Composite Index, broke its record high earlier this week as it reached 3013.40 points bringing its total gains this year to 19 %, the most among Asia’s 10 largest markets.

Indonesia has managed to avoid recession during the global downturn, unlike some of its more export-reliant neighbors. Both Singapore and Hong Kong are in recession and Malaysia and Thailand are likely slipping into a recession, too, analysts say.


ETFs Investing In Indonesia:


1: The Market Vectors Indonesia (IDX) Fund: The Index provides exposure to publicly traded companies that are domiciled and primarily listed in Indonesia, or that generate at least 50% of their revenues in Indonesia. The fund has more than doubled since its launch, outpacing the S&P 500 and outperforming BRIC countries. IDX consists of the 28 securities included in the Market Vectors Indonesia Index, a benchmark that tracks the performance of companies that are based in or generate at least half of their revenues from Indonesia. IDX charges an expense ratio of 0.71%. The IDX is much more focused on Energy and Commodities that are rallying globally as the US Dollar falls and inflation signals begin to sound.

IDX Top Ten Holdings

1. PT Astra International TBK: 8.80%
2. PT Bank Central Asia TBK: 6.80%
3. P.T. Telekomunikasi Indonesia Tbk. ADR (TLK): 6.75%
4. PT Bank Rakyat Indonesia TBK: 6.06%
5. PT Perusahaan Gas Negara (Persero) TBK: 5.72%
6. PT Bumi Resources TBK: 5.57%
7. PT Bank Mandiri (Persero) TBK: 5.57%
8. Adaro Energy Tbk: 4.82%
9. PT Indocement Tunggal Prakarsa TBK: 4.72%
10. PT United Tractors TBK: 4.66%

% Assets In Top 10: 59.46%
Total Holdings: 29
Issuer: Van Eck
Expense Ratio: 0.68%

IDX Sector Breakdown
Sector Percentage
Financials 25.23%
Industrial Materials 20.03%
Consumer Goods 14.71%
Energy 13.72%
Consumer Services 8.80%
Telecom 8.79%
Utilities 5.72%
Health Care 1.79%

2: The other fund for investing in Indonesia is a closed-end fund, Aberdeen Indonesia Fund (IF), who's principal investment objective is capital appreciation through investing primarily in equity and debt securities of Indonesian companies. Its secondary objective is current income, which is to be derived primarily from dividends and interest on Indonesian securities.

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Investing Options In Indonesia: Asia's Best Peforming Index

Asia is home to several emerging and globalizing powers, including India and China but one nation that stands out but is not largely covered in the business media is Indonesia. Little is known about Indonesia in the investing circles despite being a country made up of some 17,000 islands, which is now the 4th most populous nation in the world. One striking feature that highlights Indonesia's growth in recent years is the fact that the country has managed to avoid recession during the global downturn, unlike some of its more export-reliant neighbors. Over the last decade, Indonesia has emerged as a vibrant and plural democracy. Its economy is buoyant and a new sense of confidence is evident both within its political leadership as well as its growing civil society. Indonesia is the largest Muslim country in the world, but the Islam practiced by the vast majority of its people is liberal, tolerant and accommodative.

• The International Monetary Fund (IMF) projects Indonesia’s economy will expand 6% this year. The Chairman of Indonesia’s Investment Coordinating Board estimates growth of between 6% to 7%.

• The nation’s shares have climbed 12 percent this year and are Asia’s best performers barring Mongolia and Bangladesh, as foreign funds increased purchases after the central bank raised its growth forecast and Standard & Poor’s upgraded the nation’s sovereign debt ratings.

• Foreign investors moved more funds to Indonesian stocks in March, buying a net 4.92 trillion rupiah ($543 million) of shares after selling 1.58 trillion rupiah in the first two months this year, according to data from the Jakarta stock exchange.

• The Indonesian rupiah has risen 3.6 percent this year, the second-best-performing currency in Asia, according to data compiled by Bloomberg. A strong rupiah and low inflation have helped the central bank keep its key interest rate at a record low of 6.5 percent to support Southeast Asia’s biggest economy.

• Indonesia's stock market index, the Jakarta Composite Index, broke its record high earlier this week as it reached 3013.40 points bringing its total gains this year to 19 %, the most among Asia’s 10 largest markets.

Indonesia has managed to avoid recession during the global downturn, unlike some of its more export-reliant neighbors. Both Singapore and Hong Kong are in recession and Malaysia and Thailand are likely slipping into a recession, too, analysts say.


ETFs Investing In Indonesia:


1: The Market Vectors Indonesia (IDX) Fund: The Index provides exposure to publicly traded companies that are domiciled and primarily listed in Indonesia, or that generate at least 50% of their revenues in Indonesia. The fund has more than doubled since its launch, outpacing the S&P 500 and outperforming BRIC countries. IDX consists of the 28 securities included in the Market Vectors Indonesia Index, a benchmark that tracks the performance of companies that are based in or generate at least half of their revenues from Indonesia. IDX charges an expense ratio of 0.71%. The IDX is much more focused on Energy and Commodities that are rallying globally as the US Dollar falls and inflation signals begin to sound.

IDX Top Ten Holdings

1. PT Astra International TBK: 8.80%
2. PT Bank Central Asia TBK: 6.80%
3. P.T. Telekomunikasi Indonesia Tbk. ADR (TLK): 6.75%
4. PT Bank Rakyat Indonesia TBK: 6.06%
5. PT Perusahaan Gas Negara (Persero) TBK: 5.72%
6. PT Bumi Resources TBK: 5.57%
7. PT Bank Mandiri (Persero) TBK: 5.57%
8. Adaro Energy Tbk: 4.82%
9. PT Indocement Tunggal Prakarsa TBK: 4.72%
10. PT United Tractors TBK: 4.66%

% Assets In Top 10: 59.46%
Total Holdings: 29
Issuer: Van Eck
Expense Ratio: 0.68%

IDX Sector Breakdown
Sector Percentage
Financials 25.23%
Industrial Materials 20.03%
Consumer Goods 14.71%
Energy 13.72%
Consumer Services 8.80%
Telecom 8.79%
Utilities 5.72%
Health Care 1.79%

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Tracing Investment Opportunities In Egypt

When we speak of Egypt, the first thing that comes to mind is the images of the Great Pyramid at Giza, the Nile Delta and the ancient Egyptian civilization. Far from being a civilization located on both sides of the river Nile, the modern day Egypt is the most populated country in the Middle East and the third most populous on the African continent. Despite technically considered part of geo-economic area called Middle East Egypt lies in the continent of Africa and its per capita GDP is below the global average, trailing behind other emerging markets such as Brazil, South Africa, China, but ahead of India. Egypt’s economy is much more diversified than many in the region. Oil and gas make up only about 15% of the country’s GDP, compared to as much as 50% for many oil rich states. In addition to a strong financial sector, tourism, agriculture and industrials account for significant portions of GDP.

Investors wanting to invest in the growing Egyptian economy can do so via the Van Eck Global launched the Market Vectors Egypt Index ETF which is the first US traded Egypt ETF. The fund launched on 18th February 2010, invests in 28 companies that derive at least 50 percent of their revenues from Egyptian operations. The fund comes with a price tag of 0.94 percent. EGPT is the latest off-the-beaten-path country ETF from the fast-growing Van Eck, which recently launched ETFs tied to Poland, Indonesia and Vietnam as well. EGPT follows the Market Vectors Egypt Index, providing exposure to publicly traded companies that are domiciled and primarily listed on an exchange in Egypt or that generate at least 50% of their revenues in Egypt. The Egypt ETF has a heavy weight in the financials (42%) and industrial materials (31%) sectors, a common occurrence among large cap-focused emerging markets ETFs

Egyptian Stock Market

The EGX 30 is the main index of the Egyptian exchange. The EGX 30 is comprised of the 30 largest stocks traded on the exchange, and is quoted in U.S. dollars. A total of 179 stocks were listed on the Egyptian exchange in early 2010 and another 27 were trading over-the-counter. Regarding market capitalization, Egypt is the second biggest African market after South Africa. Many stocks are very liquid and can be traded easily and with low transaction cost. Foreign participation is still quite low, as it is in most other African markets.

From the perspective of intermarket analysis, Egypt is closely correlated with the Arabian markets. Egypt had performed equally to the Arabian markets during the crisis in 2008, but regained ground better in the year 2009. According to bloomberg data, the historic rolling correlation of the EGX 30 Index with MSCI World Index is very low, offering global investors a significant risk reduction of their overall portfolios. The 12-month rolling correlation, based on daily data, was ranging between -0.15 and +0.2 from 1999 to 2008, and climbed to +0.2 to +0.3 in 2009.


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WisdomTree Dreyfus Chinese Yuan Fund: Tracking The Chinese Currency

Even though some finance experts want the US Treasury Secretary to declare China as a currency manipulator, equity markets across the world has made handsome gains whenever China has announced plans to make its currency, the yuan, more flexible against the dollar. As most of the Chinese manufacturing sector is working on thin margins, its clear that the Chinese government would not allow their currency to go down with the dollar ship. Although economists continue to be skeptical about the goodness of the Chinese currency moves, there is no doubt that China is ready to resume greater flexibility with its yuan.

For investors who want to invest in currency in the emerging Chinese market, a favorite investment vehicle continues to be the WisdomTree Dreyfus Chinese Yuan Fund (CYB). The ETF seeks to achieve total returns reflective of both money market rates in China available to foreign investors and changes in value of the Chinese Yuan relative to the U.S. dollar. The fund normally invests in a combination of U.S. money market securities with forward currency contracts and currency swaps that are designed to create a position economically similar to a money market security denominated in Chinese Yuan. The average portfolio maturity is 90 days or less. It does not purchase any money market securities with a remaining maturity of more than 397 calendar days. The fund is non-diversified.

A point to remember is that Chinese laws prevents the funds from directly investing in the renminbi, so they hold currency derivatives known as non deliverable forwards. These are similar to futures contracts, which reflect a market’s expectations. As a result the WisdomTree Dreyfus Chinese Yuan Fund (CYB) might not perfectly track the yuan.


Unlike other major currencies, the Yuan can’t be traded on the Forex market. WisdomTree’s CYB ETF is an actively managed ETF currently holding a compilation of futures contracts and swaps with different maturities that seeks to mirror the money market securities denominated in the Chinese Yuan. The fund has no current yield, so it is strictly an appreciation play versus the U.S. dollar.

CYB Issuer: Wisdom Tree


CYB Performance

52 Week Return: -1.38%
YTD Return: -0.79%
1 Week Return: 0.28%
2 Week Return: 0.48%
4 Week Return: 0.64%
13 Week Return: -0.75%
26 Week Return: -1.26%

CYB Expenses & Fees

* Expense Ratio: 0.45%
* Category: Currency
* Category Range: 0.35% to 0.89%
* Category Average: 0.5%

Another key instrument to bet on China’s currency, the renminbi (also called the yuan) is the Market Vectors Chinese Renminbi/USD ETN (CNY). The ETN is an unsecured debt security issued by Morgan Stanley that is linked to the S&P Chinese Renminbi Total Return Index. The ETN seeks to track the performance of the Chinese Renminbi against the US Dollar by investing in rolling three-month non-deliverable currency forward contracts. The annual expense ratio is 0.55 percent and the ETN doesn’t currently pay a dividend.

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The United States Oil Fund LP ETF

Gone are the days when investors looking to make a play on the rising oil prices did so through equities of energy companies that enjoyed profitability at every crude oil price spike. With the rise of the ETF industry, investors have changed the way while approaching commodity investing specially in the oil and natural gas segment. Knowing how you can invest in oil should be a part of your game plan whether it’s time to buy natural gas and oil or not.

One of the popular exchange-traded commodity product available to U.S. investor offering exposure to crude oil is the United States Oil Fund (USO). The US Oil Fund (USO) seeks to reflect the performance, less expenses, of the spot price of West Texas Intermediate (WTI) light, sweet crude oil. The fund invests in futures contracts for WTI light, sweet crude oil, other types of crude oil, heating oil, gasoline, natural gas and other petroleum based-fuels that are traded on exchanges. The fund also invests in other oil interests such as cash-settled options on oil futures contracts, forward contracts for oil, and OTC transactions that are based on the price of oil.

The USO was created as a proxy to track the price of oil. When the fund was first created, its price was exactly 1-1 that of the current future’s month oil price. USO is essentially a rolling ETF, which means in essence that every 30 days or so, the ETF has to “roll” into the forward contracts of oil before the ones it is holding expires. Rolling the current month’s contracts into the next month’s contracts, especially lately, creates what is called contango when the future price is higher than the current price. Since the United States Oil fund relies on the use of derivative contracts rather than physical assets experts fear that it just might get entangled in the vagaries of the crude oil markets such as price contango. Some of the losses are however mitigated because the USO earns interest on the money it collects from investors, and because it only needs 10% of those funds to actually secure the futures contracts because of leverage.

On the positive side, whenever the future contract costs less than the previous month’s contract, and thus the fund actually earns a higher rate of return than the fund it is tracking.


Top Ten Holdings - USO
as of 06/30/2010
Company YTD Return % of Assets
Future Contract On Wti Crude Future Jul10 -- 24.41%
Future Contract On Wti Crude Future Jul10 -- 19.48%
Fidelity Instl MM Fds Government I -- 16.50%
FIGXX -- 9.60%
GSGXX -- 4.40%
Future Contract On F/C Ws Crude Future July10 -- 3.25%

USO Total expense ratio: 0.96%

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SLV - iShares Silver Trust: An Insight

While most investors are well aware of gold’s unprecedented march fewer are familiar with the yellow metal’s often overlooked cousin, silver. However many big investors consider the metal to be a sound investment due to robust industrial demand, its traditional role as a store of value, and its current ratio compared to gold. In any case, silver ETFs are an efficient way to invest in the metal without dealing with expenses of holding a physical amount of silver in your possession.

Silver is a very versatile metal; it’s not only popular in jewelry, but it has a wide range of industrial applications that put it in a prime spot to benefit in the recovery. It’s an excellent conductor of electricity and is popular in water purification, as well. Silver is also fast becoming a critical component of emerging technologies that will undoubtedly be critical to life in the 21st century. Silver plays a crucial role in solar technology, finding its way into 90% of all crystalline silicon photovoltaic cells, as well as silver embedded bandages and water purification devices.

On April 28th, 2006, Barclays launched the first silver exchange-traded fund in the US. named iShares Silver Trust (SLV) traded on the AMEX as SLV, the iShares Silver Trust was eagerly anticipated by silver investors ahead of its birth. When SLV was born in late April 2006, it had 21m ounces of silver stored in trust. But this highly anticipated ETF proved hugely popular and SLV demand growth far exceeded that of silver itself. So SLV’s custodians issued more shares and used this cash to buy more silver to equalize this imbalance. Just two weeks after launch, SLV’s holdings had more than tripled to 65m ounces. SLV is backed by phyiscal holdings of silver, with $5.5 billion in assets, and the fund has an expense ratio of 0.5%. Historically, when gold prices increase, so do silver prices. However, silver has industrial applications, which makes it less volatile than gold. SLV’s trading volume should also offer insights into how its popularity is growing and how silver-price movements affect the psychology of stock traders owning SLV. Not surprisingly, the volume trends in SLV are very similar to GLD’s in its own first couple years.

SLV Valuation
EPS: $-3.07
P/E: -5.7752
Relative Strength: 86
Relative Strength Ranking: 0.0478
Short Volume: 0
Options Available: 266
Exchange: NYAR

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SPDR Gold Shares: World's Second Largest ETF

With economic uncertainty and gradual weakening of the currencies specially the US Dollar, investors have been searching for a safe place for their funds. Uncertainty in the global Oil prices has not helped the investors but gold has continued its long-term advance to record high levels drawing investors to this traditional safe-haven asset.

Owning a gold-focused ETF is a good way to get physical exposure to gold without the hassle of taking physical possession – finding storage, paying for storage and so on.

Experts feel that ongoing economic uncertainty is likely to continue make gold a hot investment, with SPDR Gold Shares (NYSEArca: GLD) among the most popular means of participating. GLD opened up history’s first direct conduit between gold and the vast pools of capital in the stock markets. GLD is the second-largest ETF in the world, with $50 billion in assets, and the world’s sixth-largest owner of physical gold. Each share of GLD is backed by physical gold bullion, which makes it an alternative to actually investing in physical bullions. Several factors have contributed to the spike in assets: concerns over the Euro zone sovereign debt crisis, fears of a double-dip recession, possible inflation worries and a need for a general safe haven for assets. GLD now hoards a record total of 1,316.18 metric tons of gold, a level that rivals most of the world’s central banks.

SPDR Gold Shares offer investors an innovative, relatively cost efficient and secure way to access the gold market. Originally listed on the New York Stock Exchange in November of 2004, and traded on NYSE Arca since December 13, 2007, SPDR Gold Shares has been one of the fastest growing ETFs in the US. SPDR Gold Shares now trade on the Singapore Stock Exchange as well as the Tokyo Stock Exchange and the Stock Exchange of Hong Kong.

Today GLD is the second largest ETF on the planet, behind only SPY which tracks the flagship S&P 500 stock index. With this still-growing ETF already a force to be reckoned with, no investor or speculator in the precious-metals realm can afford to ignore it.

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Commodities ETF: The Easier Way To Invest In The Commodity Segment

Every time you stopped at a filling station for gas or gone out to buy a precious gold ornament for someone, your heart must have felt the exponential rise in the commodity segment. In spite of stock trading in popular blue chip companies, the fact of the matter is that the commodity market brings with it a lot of opportunity to multiply your funds if you trade them with caution. Investing in commodities or commodity trading is very risky and should only be attempted if you know what you are doing. For those who had always wanted to invest in the commodity trade segment but were skeptical about timing the futures and options market correctly, the next best option is that of investing in a commodity ETF.

The commodity market as we know is actually a collection of 48 worldwide markets that trade 96 commodities. Everything from silver to orange juice concentrate can be sold. The largest market here in the United States is located in Chicago. Smaller in size and fame, the Chicago Mercantile Exchange or CME trades in a large amount of commodities.

Commodity ETFs come in several forms, but most were created to mirror the returns of commodities by investing in the commodity futures markets. They are all buy futures contracts based on the amount of funds they receive from investors. An excellent feature is that they trade just like a stock and you can buy or sell at any time during market hours. More importantly, you cannot lose more than your initial investment with an ETF, as many have this fear when they consider the futures markets. Because futures provide leverage (more exposure than the actual cash invested), ETFs that use futures contracts have uninvested cash, which they usually park in interest-bearing government bonds. The interest on the bonds is used to cover the expenses of the ETF and to pay dividends to the holders.

A number of commodity funds are actually structured as exchange-traded notes (ETNs) that are linked to futures-based commodity benchmarks. Commodity ETNs have both potential advantages and drawbacks. Because they don’t actually invest in futures contracts, ETNs will generally exhibit lower tracking error, and the management process may be more cost-efficient. But because ETNs are senior unsecured debt securities, they expose investors to the credit risk of the issuer. In the case of a bankruptcy, there are no underlying assets to be distributed to investors. Most ETN issuers maintain very high credit ratings, but the risk of default should never be completely written off.

ETFs and ETNs are however treated differently for taxation purposes. Current opinion is that all gains on ETNs held for longer than one year are treated as long-term capital gains, whereas an investor owning a futures-based ETF is taxed on any capital gains on the underlying futures held by the fund

Experts believe that the fast rate of industrialization in China and India and the integration of Russia and Eastern Europe into the global economy is going to boost the demand for commodities and drive the prices higher. Commodity trade investors are bullish that this trend would result in a long-term uptrend.

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Overview Of iShares Nasdaq Biotechnology Index Fund

Imagine being able to invest in futuristic companies with enormous potential not only for the next couple of years but also for decades to come. The opportunity to invest in the Biotech Industry is now no longer a difficult proposition due to the emerging ETFS growth in the segment. Biotech ETFS have come as a boon for investors who were confused understanding the confusing scientific and technical jargon that biotech companies usually harbor in their annual reports. If there's any other sector exchange traded fund (ETF) that gets more attention than the nano ETF, it is the biotech ETF.

Because the success of biotech firms often depends on unproven revenue streams, companies in this industry can be extremely risky. As such, many investors have preferred to gain diversified exposure to the sector through ETFs that maintain well-diversified holdings.

The fund we are tracking in this article is the iShares Nasdaq Biotechnology Index Fund (IBB) that is linked to the NASDAQ Biotechnology Index, a benchmark that includes biotechnology and pharmaceutical companies listed on the NASDAQ exchange. Although interest in it, as measured by media postings, has waned recently, it still holds $1.9 billion in assets and it is probably the most diversified of the lot with 176 underlying stocks. Even though this ETF holds some of the riskiest little biotech stocks on the market it is generally the safest investment as the risk is diluted substantially. IBB also accurately mirrors the entire publicly traded biotech industry as the NASDAQ holds almost the entire field of stocks. IBB is also the most liquid biotech ETFS in the market currently.

The investors should also be aware of some limitations of the iShares Nasdaq Biotechnology Index Fund. The fund is not tracking the father of biotech stocks, Genentech, as it currently does not trade on the NASDAQ. Investors could easily invest in Genentech stock separately if desired. Despite its broad base, IBB is relatively top-heavy: the top ten components account for almost half of total holdings while 60 companies have an allocation of 0.25% or less. IBB has an expense ratio of 0.48% and is more actively traded than the other biotech ETFs combined.

IBB Top Ten Holdings

1. Amgen, Inc. (AMGN): 9.12%
2. Teva Pharmaceutical Industries, Ltd. ADR (TEVA): 7.30%
3. Celgene Corporation (CELG): 6.22%
4. Gilead Sciences, Inc. (GILD): 6.19%
5. Vertex Pharmaceuticals (VRTX): 3.70%
6. Dendreon Corporation (DNDN): 3.61%
7. Biogen Idec, Inc. (BIIB): 2.78%
8. Perrigo Company (PRGO): 2.74%
9. Alexion Pharmaceuticals, Inc. (ALXN): 2.57%
10. Genzyme Corporation (GENZ): 2.45%

IBB Market Cap Breakdown

Giant 16.42%
Large 21.46%
Medium 37.08%
Small 16.08%
Micro 8.86%

IBB Expenses & Fees

* Expense Ratio: 0.48%
* Category: Health & Biotech Equities
* Category Range: 0.21% to 0.75%
* Category Average: 0.49%

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WisdomTree India Earnings Fund

After being drawn to the potential for meaningful growth offered by emerging markets in Russia, China and Brazil, investors are now looking at options in India that had so far been overshadowed by the China success story. India is the world’s most populous democracy and is home to the world’s 12th largest economy by nominal GDP with some analysts predicting that the country could surpass the U.S. in the next 30 years. Investors can benefit by adding some exposure to India in a portfolio as India continues to make the fiscal and social changes that will lead to greater sustained growth in the long run.

In addition to diversified emerging markets funds and BRIC ETFs, which generally make a significant allocation to Indian equities, there are a number of ETFs that invest exclusively in India’s stock market. Top of the line is definitely the popular WisdomTree India Earnings Fund (EPI), which tracks companies selected for the Wisdom Tree India Index that are incorporated and traded in India and are profitable and eligible to be purchased by foreign investors. They are weighted based on their earnings in the prior fiscal year. The fund's 125 holdings include various sectors and also include Infosys and Icici Bank. The fund has a low net expense ratio of 0.88% and as at 14 April 2010, the fund climbed 9.7% YTD. This is the most liquid of the three ETFs discussed.

Due to the weighting methodology of EPI, this fund gives a larger allocation to small and mid cap stocks than other India ETFs. Although large cap stocks receive the largest allocation in EPI, this fund does maintain exposure to firms of all sizes, as companies with a market capitalization of less than $10 billion account for more than 40% of total holdings. Unlike most equity ETFs, EPI doesn't track a market cap-weighted index, instead replicating the performance of a benchmark that weights holdings by earnings. Its main focus is on industrial materials (32%) and financials (23%).

Fund Inception Date 2/22/2008
EPI expense ratio: 0.88%
EPI: 23.46 +0.33 +1.43%

Top Holdings in WisdomTree India Earnings Fund As of 7/9/2010

1. Reliance Industries Ltd 10.41%
2. Infosys Technologies Ltd 8.54%
3. Oil & Natural Gas Corp Ltd 7.25%
4. State Bank of India Ltd 3.51%
5. Housing Development Finance Co 2.71%
6. Bharti Airtel Ltd 2.65%
7. ICICI Bank Ltd 2.51%
8. Tata Consultancy Services Ltd 2.36%
9. HDFC Bank Ltd 1.97%
10. Hindustan Unilever Ltd 1.82%

India ETF - Sector Breakdown As of 7/9/2010

1. Financials 22.33%
2. Energy 20.32%
3. Information Technology 14.39%
4. Materials 12.65%
5. Industrials 7.80%
6. Consumer Staples 4.84%
7. Telecommunication Services 4.80%
8. Consumer Discretionary 4.69%
9. Utilities 4.65%
10. Health Care 3.53%

India’s strength comes from the fact that its internal market is large, but is also better insulated than other emerging markets from exogenous shocks.

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iShares S&P India Nifty 50 Index (INDY)

In this era of global economic uncertainty, it is not wise to keep all your eggs and in the same basket and hence more and more investors are looking for value creating opportunities mainly in the emerging markets of the world specially India which is seen as the next big largely untapped market compared to the overflowing Chinese markets. The facts speak for themselves and reveal that India is not far behind from neighboring China. Although India hasn't sported the GDP growth that China has, but from 2003-2008, India's average growth rate has been a healthy 8.5% making it the second-fastest growing major economy in the world. Most of the existing India centric funds have shown impressive results and there is no surprise that many more India centric funds are in the pipeline. The sooner one can enter the enormous Indian markets which are fundamentally strong and clawed by he results of other global markets, the better it is going to be for the investor. The returns can be impressive as well and who knows they might even buy you a ticket to visit the Taj Mahal in India.

Joining this Indian success story is the the iShares S&P India Nifty 50 Index Fund (INDY) which is designed to track the S&P CNX Nifty Index that represents the 50 largest and most liquid Indian securities listed on the National Stock Exchange (NSE) of India. The Index is a rupee denominated index designed to measure the performance of the largest and most liquid companies in the Indian equity market that are available to international investors.


iShares S&P India Nifty 50 Index Fund (INDY) began trading on the Nasdaq on 20th November, 2009. INDY is the fourth exchange traded product (ETFs and ETNs) to track Indian equities, but it is the first to follow the Nifty. As its name implies, the fund has 50 holdings. INDY has a 0.89% expense ratio. Current top sector and industry weightings include banks 17.1%, refineries 13.2%, computer-software 12.1%, engineering 6.7%, and steel & steel products 5.0%. Investors looking for large cap exposure may like INDY, but its relatively high expense ratio and concentration among major holdings are potential drawbacks although as on 14th April 2010, the ETF was up 10% YTD.

Top Daily Holdings as of 7/9/2010

RELIANCE INDUSTRIES LTD 11.47%
INFOSYS TECHNOLOGIES LTD 8.90%
ICICI BANK LTD 6.32%
LARSEN & TOUBRO LTD DETACHED 6.19%
ITC LTD 5.06%
HOUSING DEVELOPMENT FINANCE 4.94%
HDFC BANK LIMITED 4.59%
STATE BANK OF INDIA 4.02%
OIL & NATURAL GAS CORP LTD 2.81%
TATA CONSULTANCY SVS LTD 2.53%

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The Indxx China Infrastructure Index

If you are an investor or a trader, chances are that you would have discussed China, its economy and its impact on the world at least once every day within your close circle. Like it or hate it but you cannot ignore that fact that Chinese economy has been the fulcrum of most discussions in the recent past. China, which is considered the top most emerging economies of all the Bric nations, has definitely emerged as the most vibrant success stories of the financial domain. With emerging economies comes Infrastructure developments and upgrades and China, which is known to be the manufacturing hub of the planet is no exception. The Chinese government which recently pumped a massive $586 billion stimulus package knows this fact and are investing billions into infrastructure projects to become a dragon economy in the real sense of the world.

A good way to get in on the trend is with Indxx China Infrastructure Index (Ticker: CHXX) that covers the Chinese infrastructure sector. The IndXX China Infrastructure Index is a 30 stock free float adjusted market capitalization index designed to measure the market performance of equities in the Infrastructure sector of China. Infrastructure sector is as companies categorized as a part of 35 sub sectors as per the GICS classification. The sub sectors cover Construction & Engineering, Construction Materials and Utilities. The index consists of common stocks that are listed on Hong Kong Stock Exchange, New York Stock Exchange, NASDAQ and London Stock Exchange.

Index Methodology- To become eligible for inclusion, a company must be a common stock listed on Hong Kong Stock Exchange, New York Stock Exchange, NASDAQ and London Stock Exchange. It should be among the 35 sub sectors identified by the GICS classification and have an average daily cash volume of US$4 million in the month of January and June prior to consideration. The company should have a minimum free float of 10%. The Index is reconstituted annually on June 30th and will begin trading starting October 1st of the same year. The Index is rebalanced for corporate actions. If a constituent is removed from the Index, there will be no replacement.

The Fund seeks to achieve its investment objective by attempting to replicate the portfolio of the Underlying Index through investments in equity securities, including shares traded on local exchanges, American Depositary Receipts (“ADRs”) and Global Depositary Receipts (“GDRs”). The Underlying Index is a free-float market capitalization weighted stock market index comprised of a representative sample of 30 emerging markets companies that INDXX, LLC determines to be the representative of mid-market capitalization companies domiciled in China.

The China Infrastructure Index charges a net expense ratio of 0.85 percent and has an average market value of $8.3 billion. The top industries it invests in are real estate management and development, metals and mining and construction and engineering.

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Overview Of Global X Brazil Consumer ETF

Brazil has been in the news for all the wrong reasons recently after a disastrous world cup football campaign but that hasn’t deterred Global X, the New York-based firm to the launch the Brazil Consumer ETF (BRAQ). Soccer is definitely the pulse of the Latin American nation and Global X hopes to tap the consumer pulse by launching its new fund that comes just two weeks after Global X introduced the Brazil Mid Cap ETF (BRAZ). The Brazil Consumer ETF (BRAQ) was launched on 8th July 2010 offers investors targeted exposure to sectors of the Brazilian economy, providing additional options for investing in one of the largest and most unique emerging economies. Global X also plans to launch ETFs tracking Brazil’s financial, industrial, raw materials and utilities industries in the near future.

BRAQ tracks the Solactive Brazil Consumer Index, a benchmark designed to reflect the performance of Brazil’s consumer sector. The ETF will track at least 20 companies and at most 40 companies in Brazil. BRAQ has the highest weights in the food and beverage (34%), retail (25%), and personal and household goods (19%) sectors.

The Solactive Brazil Consumer Index is designed to reflect the performance of the consumer sector in Brazil. It is comprised of securities of companies that have their main business operations in the consumer sector and are domiciled or have their main business operations in Brazil.

Using a replication strategy, the Global X Brazil Consumer ETF will normally invest at least 80% of its total assets in the securities of the underlying Index and in depositary receipts based on the securities in the Index. The Underlying Index is a free float adjusted, liquidity tested and market capitalization-weighted index that is designed to measure the performance of the consumer sector of the Brazilian economy, as defined by Structured Solutions AG. The Underlying Index is sponsored by an organization (“Index Provider”) that is independent of the Fund and Global X Management Company LLC, the investment adviser for the Fund.


Top 10 Index Constituents Of BRAQ

CIA DE BEBIDAS DAS AME 4.75%
BRF - BRASIL FOODS 4.75%
CIA BRASILEIRA DE DIS 4.75%
NATURA COSMETICOS SA 4.75%
HYPERMARCAS S.A 4.75%
LOJAS RENNER S.A. 4.75%
SOUZA CRUZ SA 4.75%
GAFISA SA 4.75%
JBS SA 4.75%
LOJAS AMERICANAS SA-PREF 4.75%
Other 52.50%

Fund Management

Stock Exchange: NYSE Arca
Total Expense Ratio: 0.77%
Bloomberg IOPV Ticker: BRAQIV
Website: www.globalxfunds.com

Portfolio Managers: The professionals primarily responsible for the day-to-day management of the Fund are Bruno del Ama and Jose C. Gonzalez. Mr. del Ama and Mr. Gonzalez have been Portfolio Managers of the Fund since inception

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Hang Seng BeES ETF: India's First International ETF

The fixation of investing in Chinese markets with as low as Rs.10,000 combined with the growing popularity of Exchange Traded Funds (ETFs) marked the launch of the Hang Seng Benchmark Exchange Traded Scheme (NSE Symbol-HNGSNGBEES) in February this year. The fund is the brainchild of Benchmark Asset Management Company India Pvt. Ltd, which carved a niche for itself in the Indian Mutual Fund Industry by successfully launching first ETF in Asia (not only India) Nifty BeEs. The company is also credited with launching the Gold ETF first time in India.

The Benchmark's open-ended ETF tracks Hong Kong's Hang Seng index, one of the oldest and among the most popular indices on the Hong Kong stock exchange. The index currently comprises 42 stocks and can have a maximum of 50 stocks. The ETF, which is also investing in mutual funds, or ETFs that track the Hang Seng Index themselves, is the first international ETF to have emerged out of India.

The daily net asset value (NAV) of a single unit of the fund is arrived at, by calculating the daily Hang Seng index close multiplied by the currency rate of Hong Kong dollar-Indian rupee and divided by 100.


Management Of The Hang Seng BeES ETF

Name of Company: Benchmark Asset Management Co Pvt. Ltd.
Phone: 91-22-66512727
Website: www.benchmarkfunds.com
Address: 405,Raheja Chambers,
Mumbai 400 021
India

Inception Date: 15/03/2010
Fund Advisor(s): Benchmark Asset Management Co Pvt. Ltd.
Fund Manager: Vishal Jain
Manager Start Date: 15/02/2010
Fund Manager: Payal Kaipunjal
Manager Start Date: 15/02/2010

Top 5 Holdings Sector %

HSBC Holdings PLC Financial Services 13.70
China Mobile Ltd. Telecommunications 8.87
China Construction Bank Financial Services 7.08
Industrial And Commercial Bank O... Financial Services 6.23
China Life Insurance Company, Ltd. Financial Services 5.11



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Reviewing One Fund: The Fund Of Funds

Imagine being able to maintain a broad-based global stock portfolio of 5000 large medium and small companies in the United States, Europe and Japan as well as other developed and emerging markets covering over 95% of the world’s stock market through a single security for a long term investment growth? Sounds too good to be true but that’s exactly what One Fund (NYSE Ticker: ONEF), a US based investment company is offering to subscribers through an indexed investment approach at the lowest possible cost. U.S. One, Inc. serves as the investment adviser to the Fund while Paul Hrabal, President of U.S. One, Inc. is the Fund’s portfolio manager is managing the Fund since its inception on 11th May 2010. The One Fund ETF could be ideal for an investor considering the highs and lows and seeking a balanced ETF that tracks the world markets, with lesser noticeable gyrations of focused ETFs.

One Fund buys and holds stocks long term through ETFs that track various stock market indices as holdings are weighted based on their contribution to global stock market capitalization, adjusted for fund management’s view of the relative long-term economic prospects, competitive advantage and potential return of each target market. The One Fund offers investors a way to achieve the entirety of their equity exposure through a single security; the ETF’s fact sheet notes that investors can achieve access to more than 5,000 companies in the US and around the world through ONEF.

One Fund began trading on the New York Stock Exchange under ticker symbol ONEF on 11th May 2010. The Fund shares are listed for secondary trading on the NYSE Arca. One Fund’s fact sheet states that its investment approach is based on its three beliefs that 1) stocks outperform, 2) market timing does not work, and 3) stock selection does not work. Sounds like a passive indexed product one would say, but ONEF is an actively managed fund and not a tracking index.

Overview Of One Fund

Ticker Symbol ONEF
Investment Category Global Stock Fund
Investment Objective Long Term Growth
Total Expense Ratio 0.51%
Inception Date 05/11/2010

One Fund Holdings (By Investment As Of 7/8/2010)

Ticker Exchange-Traded Fund Weight

VV VANGUARD LARGE-CAP ETF 49.09%
VEA VANGUARD EUROPE PACIFIC ETF 21.05%
VB VANGUARD SMALL CAP ETF 19.33%
VWO VANGUARD EMERGING MARKETS ETF 5.34%
SCZ ISHARES MSCI EAFE SMALL CAP INDEX 5.20%

U.S. Large Cap Equity

Vanguard Large Cap ETF: The Fund employs a “passive management” or indexing investment approach designed to track the performance of the MSCI® US Prime Market 750 Index, a broadly diversified index predominantly made up of stocks of large U.S. companies. For more information about this Fund, including its prospectus and shareholder reports, go to www.vanguard.com.

U.S. Small Cap Equity

Vanguard Small Cap ETF

International Equity

Vanguard Europe Pacific ETF: The Fund purchases stocks included in the Morgan Stanley Capital International Europe, Australasia, Far East (MSCI® EAFE®) Index, which is made up of common stocks of companies located in countries in Europe, Australia, Asia, and the Far East.


Advantages Of Choosing One Fund ETFs

One Fund owns, through the underlying ETFs, nearly 5,000 companies around the world but it owns these through other ETFs instead of owning those companies directly. One Fund pays nearly 16 basis points in underlying fund fees but benefit on the cost and liquidity front by not having to manage an extremely large basket of stocks, including some in emerging markets and international small cap stocks that are thinly traded.

Main Disadvantages Of One-Fund ETFs

Underlying ETF Risk: The Fund is subject to the same risks as the Underlying ETFs in which it invests.

Costs of Investing in Underlying ETFs: When the Fund invests in Underlying ETFs, in addition to directly bearing the expenses associated with its own operations, it will bear a pro rata portion of the Underlying ETFs’ expenses (including operating costs and management fees). Consequently, an investment in the Fund entails more direct and indirect expenses than a direct investment in the Underlying ETF. An investor who puts money in these products is paying two layers of fees – the first layer goes to the manager of the ETF of ETFs and the second layer goes to meet the expense ratio of the underlying ETFs. Hence, the advisor should weigh these costs against their promise of performance.

Some traders feel its not worth to have an expense ratio of .51% to buy 5 ETFs and you are better off buying them individually while some feel that ETFs of ETFs is a good idea and definitely worth a try. No matter which part of the fence you sit in it would be interesting to watch the market trend of this fund of funds.

Although ETFs initially appealed to cost-conscious investors not known for high turnover in their portfolios, these vehicles have since been embraced by more active investors. ETFs will undoubtedly continue to evolve as new innovative strategies. As with all ETF products, it pays for the advisor or end investor to do some homework and learn what is "inside" their given ETF.

Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus. Please read the prospectus carefully before you invest.

Chance To Hop On The Indian Growth Bandwagon

As part of a plan to repeat the China growth story or even better it, a US-based Emerging Global Advisors have introduced a new India-themed exchange traded fund (ETF) on the New York Stock Exchange (NYSE). The fund named EG Shares Indxx India Small Cap ETF (SCIN) offers a new way for investors to get exposure to small-cap Indian companies and bring the emerging Indian markets under their investment portfolios.


Most of the India based ETF's so far have been dominated by holdings in large cap companies but EG Shares Indxx India Small Cap ETF (SCIN) has gone the other way by choosing India's small and mid cap sector. With its launch SCIN becomes the fourth ETF offering pure play exposure to the Indian equity market, but is the first to focus exclusively on the country’s small cap equities. India has a growing middle class that's young educated, hardworking and filled with entrepreneurial ambition and its no surprize that the Indian small cap sector has outperformed large cap in Indian equities in the recent past. The EG Shares Indxx India Small Cap ETF (NYSE ticker: SCIN) is tracking the Indian small cap sector with 75 holdings as the index consists of common stocks that are listed on India’s National Stock Exchange and Bombay Stock Exchange. The top holdings of SCIN don’t include mega cap stocks such as Reliance Industries and Infosys found in most other India ETFs; Patni Computer Systems (3.4%), Indian Bank (2.5%), and Mangalore Refinery (2.0%) are among the largest individual components.


SCIN is the third country-specific ETF from EGA, joining the China Infrastructure Index Fund (CHXX) and Brazil Infrastructure Index Fund (BRXX). The company also offers a suite of “pure play” diversified emerging markets products and would be introducing a second India centric ETF soon called the EG Shares Indxx India Infrastructure Fund (NYSE ticker: INXX) focusing on infrastructure and will have a portfolio of 30 companies involved in India’s infrastructure build-out.


Key Statistics of The Indxx India Small Cap Index Fund

ETF Ticker: SCIN (NYSE)
Bloomberg Index Ticker: EGSXIIST
ETF Gross expenses 1.58%
ETF Net Expenses .85%
Index Holdings 75
Index Avg Market Cap $632 mil
Index Median Market Cap $473 mil
Index Average P/E: 13.04
Index Price/Book: 2.25
Index Price/Sales: 1.43
Index Price/Cash flow: 11.04

Why India?

India is the world’s most populous democracy and is home to the world’s 12th largest economy by nominal GDP. Indian Economy is considered to be largely robust and a stable democratic government headed by an able Prime Minister, Dr. Manmohan Singh who is largely seen as the man responsible for the county's economic liberalization process.

Even President Obama had admired Dr. Singh's policies earlier in the year by saying that he, Dr, Singh “has been doing a wonderful job in guiding India even prior to being the prime minister along the path of extraordinary economic growth. That is marvel, I think, for the entire world”.

Economy experts say that India is much more attractive than most International markets as it had an expected GDP growth of 7-8% in CY 2010 while developed markets had been growing at around 2%. India has $2 trillion in debt, but for most other measures, it is a healthy economy. Its forex and gold reserves are $287.5 billion, and the savings rate is 35% of GDP, with an investment rate of 32.1% of GDP, including a good chunk for infrastructure. Estimates for the outlook of the Indian economy vary considerably, with some analysts predicting that the country could surpass the U.S. in the next 30 years.

An investors’ survey for Bloomberg BusinessWeek had found that 40% of American investors plan to increase their exposure to international stocks over the next five years, up from 22% a year ago. There is no surprise that the Exchange traded funds focused on India are likely to flourish in times to come as more and more fund managers look at the Indian growth bandwagon and try to create a value product for their investors.

Even though the BRIC thesis posits that China and India will become the world's dominant suppliers of manufactured goods and services, respectively, the downside is that India's economy is not risk-free. While outsourcing is a huge boon to the Indian economy, having too large of a dependence on American interest (and money) could be a deal-breaker until the country's economy is able to sustain itself with the same degree of prosperity that it's currently enjoying.

Markets Reaching A Critical Point

Natural Gas : If you have been long you may very well bear few more days. Despite its continual slide for months NG showed some life recently in Mid May. It shows some move from 20th May to 26h/27th and at that point add some cover or max on 29th. It may show some life again from 5th to 15th June.

ETF for Natural Gas potential for APRIL MAY 2010

May 2010 may be the month that this vital commodity may see some higher numbers!!
An over supply has absolutely no relation to the pricing or value of a commodity.

Last year Exxon Mobil paid about 41 $ Billions for XTO Energy for its technology and access to the resources. People at Exxon Mobil are smarter than any of the industry and their move has a deep meaning which market people may not understand.
Natural Gas is a very good alternative for the imported Crude oil and sooner or later, perhaps soon during 2010 there would be some breakthrough in its new usage and there may be some news which will trigger its declining prices and stop the leak in the price, which started its steep fall in the historical month of July 2008, when Crude Oil futures began their decline.
Crude oil made a fairly good move in 2009 but the Natural Gas did not follow it.
Crude oil made over 100% move during second quarter of 2009 but the Natural Gas remained weak and it has only declined in price gradually.

I see a greater usage of Natural Gas in industries, homes and even motor vehicles. There could be some new developments in its price range soon.
Based on my studies I see that

UNG : ETF Natural Gas as anyone can see has been on decline since the last market crash of Fall 2008 from 65s to literally 6.90s.
It appears to be literally a dead commodity as the futures or ETF show each day a new decline.

In my projection I find that Natural Gas may begin some minor move from early April and then picking up from mid April and early May peaking by Mid May for an intermediate short trend. This potential up move may give NG futures and UNG and other related stocks a new life in this apparently depressed commodity.

Top ETF this week

ETF Last Range Change
DXO 4.35 0-0 0 NaN%
EEM 41.1 40.75-41.388 0.2 0.48%
FAS 97.43 95.94-100.9 0.22 0.22%
FAZ 13.35 12.89-13.58 -0.0425 -0.32%
FXI 40.83 40.44-41.13 0.81 1.98%
GLD 108.59 106.82-108.7 1.81 1.69%
IWM 67.81 67.56-68.57 -0.028 -0.04%
QQQQ 48 47.74-48.33 0.05 0.1%
SPY 116.582 116.12-117.42 -0.068 -0.06%
SRS 5.95 5.8-6 0.05 0.85%
USO 38.83 38.55-39.12 -0.07 -0.18%
XLE 56.08 55.72-56.44 0.02 0.04%
XLF 16 15.91-16.2 0.02 0.12%

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