Asian ETFs Tank Amid Heavy Selling
The week started off the same way the last one ended–with lots of selling. Asian equities were especially hit hard in the sell off, with index funds FXI (China) and INP (India) taking the brunt. INP, the ETN which tracks the Indian index, had risen dramatically in recent weeks, shooting up to about 20% higher than its net asset value, recently setting a new high of over $110. It didn’t last. Monday’s selling sent the ETN down over 13%.
FXI tracks a basket of Chinese stocks, and is likely the best indicator of the strength of the Chinese economy overall. The past few years have seen this ETF roughly double each year and, until a couple of months ago, was set to repeat this year as well. At Monday’s close FXI was down over $10 per share, closing at $161.25.
These two had been some of the best ETF performers over the year, but the market turmoil has erased gains of a few months in each case. Of course, for believers in the stories of China and India, the recent problems are just bumps in the road, as two giant emerging markets grow into their own. SeekingAlpha.com has a comparison of the recent performances of the two stocks here.
