For 2H, Five Fast Economies And Their Biggest ETFs

It’s all about investing in the future, right? The first quarter is done, the second quarter has begun, so let’s get ready for the second half of the year, shall we? Gazing into the crystal balls of GDP data compiled by the International Monetary Fund, these economies here are the “fast and furious five”. They will see the most growth in real GDP, seasonally adjusted, over the previous quarter. After the countries, we list some of the largest ETFs by assets under management. The world economy is forecast to grow 3.9% in the third quarter and 3.3% in the fourth, but all of the speed is coming from the emerging markets. Emerging market economies should grow 5.4% in the third and 4.4% in the fourth. Not all of the countries on the IMF list have accompanying ETFs. Argentina, for instance, is poised for 7% growth in the third, but there is no broad-based way to play it for American retail investors. Advisors may want to consider Argentina sovereign bonds instead. Their 10-year bond yields about 6% in dollar terms with five year debt yielding around 5%. Guess where the top five are all located?
Country 3Q17 4Q17 ETF
India 8.9% 3.6% EPI
Philippines 6.0% 6.0% EPHE
China 6.3% 5.0% FXI
Indonesia 5.5% 5.5% IDX
Brazil 3.2% 2.4% EWZ
*Countries are ranked in order of their combined 2H GDP forecast growth. All growth forecasts by the IMF. ETFs were chosen by AUM.