Getting out of emerging markets

I have been disappointed by the performance of my emerging markets ETF (XEM.TO) and am concerned that the performance of emerging markets will not be strong (e.g., China). I also want to have some exposure to the US Technology sector, which seems strong. There is not Technology ETF in Canada, but the Nasdaq is very heaving weighted to tech and can be bought using a Canadian ETF (ZQQ.TO).

  • Sell XEM @ $26.58
  • Buy ZQQ @ $35.88

Update

A month after this trade it seems to have been a good call. The ETF is sold is down 4% and the one purchased is up 1%. That’s a 5% gain.

Screen Shot 2015-11-30 at 10.13.10 PM

Additional Update

Two months after this trade it is still a good call, but marginal. XEM is down 1.5% and ZQQ is down 1.0%.

Screen Shot 2015-12-27 at 2.14.11 PM

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s