In the latest issue of ETF Momentum Tracker publisher Don Dion announced that the iShares MSCI Singapore fund (EWS) had gained momentum among Asian funds
United States of America (Press Release) August 7, 2008 --
In the latest issue of ETF Momentum Tracker, publisher Don Dion announced that the iShares MSCI Singapore fund (EWS) had gained momentum among Asian funds tracked by the weekly publication. EWS has doubled its position on Dion’s International Momentum Table, moving from the 10th spot on July 8 to the 5th spot in yesterday’s edition.
“EWS is outperforming many other ETFs that track Asia,” Dion noted in his profile of the fund, “but there have been some bumps along the way.”
EWS is down 9.6% year to date, and Dion notes that “given what’s happened in the region, that’s nearly 11 percentage points better than Morningstar’s Pacific/Asia ex-Japan Stock fund average, placing the fund in the top 1% of the category.” Dion added EWS to his ETF Momentum Tracker international portfolio on July 30.
“There are several factors that have contributed to the fund’s price decline,” Dion said, “among them are inflation and overheating in Singapore’s economy. Still, Gross domestic product grew an average of 7% annually from 2004 to 2007, with another 5% jump expected in 2008.”
EWS hit an all-time high in October and fell nearly 22% through last week. Despite the drop, Dion draws a favorable comparison, noting that, “EWS outperformed iShares funds focused on China, Taiwan and South Korea. Plus, with a five-year annualized return of 22.6%, EWS tops its category over the longer term, too, and has beaten the MSCI EAFE index every year since 2001.”
Dion believes that EWS’ exceptional 5-year track record can be attributed to its ability to capture several successful niches in Singapore’s market: “EWS plays well into trends like biotech and finance, as iShares classifies 49.2% of assets as financial stocks, followed by industrials (23.1% of assets) and telecom services (14.3%). That’s worked well recently.”
With some analysts predicting a technical recession in the third quarter for Singapore’s economy, does Dion believe that EWS will have the momentum to stay at the top of his International Momentum Table? “Despite the fund’s five-year record, investors should be wary,” Dion cautioned, “Singapore depends heavily on exports, especially consumer electronics and IT products.”
“Singapore and the fund are tied to the region’s economy, the world economy and the U.S.,” Dion concludes, “especially given the island’s emphasis on exports and services. Investors here should be wary going forward.”
Top 10 Holdings*
Singapore Telecommunications 14.30%
United Overseas Bank 12.08%
DBS Group Holdings 10.61%
Oversea-Chinese Banking 10.12%
Keppel 4.87%
CapitaLand 4.77%
Singapore Airlines 3.94%
Singapore Press Holdings 3.26%
Singapore Exchange 2.88%
Fraser and Neave 2.67%
“EWS is outperforming many other ETFs that track Asia,” Dion noted in his profile of the fund, “but there have been some bumps along the way.”
EWS is down 9.6% year to date, and Dion notes that “given what’s happened in the region, that’s nearly 11 percentage points better than Morningstar’s Pacific/Asia ex-Japan Stock fund average, placing the fund in the top 1% of the category.” Dion added EWS to his ETF Momentum Tracker international portfolio on July 30.
“There are several factors that have contributed to the fund’s price decline,” Dion said, “among them are inflation and overheating in Singapore’s economy. Still, Gross domestic product grew an average of 7% annually from 2004 to 2007, with another 5% jump expected in 2008.”
EWS hit an all-time high in October and fell nearly 22% through last week. Despite the drop, Dion draws a favorable comparison, noting that, “EWS outperformed iShares funds focused on China, Taiwan and South Korea. Plus, with a five-year annualized return of 22.6%, EWS tops its category over the longer term, too, and has beaten the MSCI EAFE index every year since 2001.”
Dion believes that EWS’ exceptional 5-year track record can be attributed to its ability to capture several successful niches in Singapore’s market: “EWS plays well into trends like biotech and finance, as iShares classifies 49.2% of assets as financial stocks, followed by industrials (23.1% of assets) and telecom services (14.3%). That’s worked well recently.”
With some analysts predicting a technical recession in the third quarter for Singapore’s economy, does Dion believe that EWS will have the momentum to stay at the top of his International Momentum Table? “Despite the fund’s five-year record, investors should be wary,” Dion cautioned, “Singapore depends heavily on exports, especially consumer electronics and IT products.”
“Singapore and the fund are tied to the region’s economy, the world economy and the U.S.,” Dion concludes, “especially given the island’s emphasis on exports and services. Investors here should be wary going forward.”
Top 10 Holdings*
Singapore Telecommunications 14.30%
United Overseas Bank 12.08%
DBS Group Holdings 10.61%
Oversea-Chinese Banking 10.12%
Keppel 4.87%
CapitaLand 4.77%
Singapore Airlines 3.94%
Singapore Press Holdings 3.26%
Singapore Exchange 2.88%
Fraser and Neave 2.67%
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