Emerging Markets Down During Second Quarter 2013

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Emerging Market Returns for 2013 Q2

While the S&P 500 did reasonably well during the second quarter of 2013, the global markets did not.

Emerging Markets did particularly poorly. It is usually the case that those investments which go up the most when markets are rising often go down the most when markets are falling.

  • iShares MSCI EAFE ETF (EFA) was down 0.93% during the second quarter, but still averaging 7.54% for the last 10 years.
    Vanguard FTSE Developed Markets ETF (VEA) was down 0.86% during the second quarter. [VEA has not been an ETF for 10 years.]
  • iShares MSCI Emerging Markets ETF (EEM) was down 10.00% during the second quarter, but still averaging 13.13% for the last 10 years.
    Vanguard FTSE Emerging Markets ETF (VWO) was down 8.40% during the second quarter. [VWO has not been an ETF for 10 years.]
  • iShares MSCI Chile Capped ETF (ECH) was down 15.76% during the second quarter, but still averaging 5.14% for the last 10 years.
    [ECH has not been an ETF for 10 years.]

Meanwhile the S&P 500 was positive for the quarter even if not as positive for the past 10 years:

  • iShares Core S&P 500 ETF (IVV) was up 2.90% during the second quarter, but only averaging 7.23% for the last 10 years and 6.96 for the last 5 years.

Diversifying your assets outside of the United States is part of protecting your assets against all being subject to a single country’s economic failure or success. And the economic growth of the emerging markets is a good place to invest a portion of your assets for long term investing.

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