Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member., Inc. (ADR) (BIDU), Vale SA (ADR) (VALE), China Life Insurance Company Ltd. (ADR) (LFC): Emerging Markets Mean Great Growth Potential

Page 1 of 2

Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you’d like to add some emerging markets stocks to your portfolio but don’t have the time or expertise to hand-pick a few, the SPDR S&P Emerging Markets ETF could save you a lot of trouble. Instead of trying to figure out which companies will perform best, you can use this ETF to invest in lots of them simultaneously.

The basics

ETFs often sport lower expense ratios than their mutual fund cousins. The SPDR ETF’s expense ratio — its annual fee — is 0.59%, and it yiedls about 2.5%. The fund is fairly small, too, so if you’re thinking of buying, beware of possibly large spreads between its bid and ask prices. Consider using a limit order if you want to buy in.

This ETF has underperformed its benchmark over the past three and five years, but the future matters more than the past. With many stocks in this realm having slid, some now see them as more attractively priced. As with most investments, of course, we can’t expect outstanding performances in every quarter or year. Investors with conviction need to wait for their holdings to deliver.

Why emerging markets?

Emerging markets rightfully draw the attention of many investors because they can offer greater growth rates as their economies develop., Inc. (ADR) (NASDAQ:BIDU)

More than a handful of emerging-markets companies had strong performances over the past year. Chinese search-engine giant, Inc. (ADR) (NASDAQ:BIDU), for example, advanced 19%. It has suffered as China’s economic growth has slowed and has also faced tough competition. Its second quarter featured strong earnings and a rosy outlook. Bulls like its profitability and growth prospects, such as in video and smart TVs. Its shares also got a boost recently on news that it’s buying a major Chinese mobile apps company. The company has been frustrating its short-sellers with its surging price.

Other companies didn’t do quite as well over the last year, but could see their fortunes change in the coming years. Brazil-based Vale SA (ADR) (NYSE:VALE), the world’s largest iron-ore concern, gained just 2% and sports a 5.2% dividend yield. With a forward P/E near 7, about half of its five-year average of 14, the stock looks undervalued to many. Some are not convinced, though, sensing continued pressure on commodity prices. Its second quarter offered estimate-topping earnings, but revenue below expectations, with management expecting improvement because of production increases and effective cost-cutting. Conditions in Brazil haven’t helped, with protesters calling for improved infrastructure and services instead of massive spending on upcoming Olympics and World Cup games.

China Life Insurance Company Ltd. (ADR) (NYSE:LFC) shed 5%. In its first quarter, it reported operating earnings up 79%, leading to an analyst upgrade to Outperform from Zacks. Zacks sees China’s economy improving and upped its projections for China Life. China Life Insurance Company Ltd. (ADR) (NYSE:LFC) itself has raised its own forecast, expecting first-half earnings to jump by some 50% over year-ago levels. The company is one of the world’s largest life insurers, but doesn’t seem to be near bargain levels lately.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!