With Cyprus and Eurozone issues on their minds, investors moved out of emerging-markets equity funds over the past week, EPFR Global said Friday.
Emerging-markets equity funds experienced their biggest weekly redemptions since early September. Investors also ran away from emerging-Europe and Russia-focused equity holdings.
But, as AdvisorOne reported earlier this week, certain emerging-market, or EM, groups are gaining favor—at least with investment experts—thanks to their stellar returns.
As growth rates have, at times, slowed in recent years in Brazil, Russia, India and China—the so-called BRICs—other emerging markets are picking up steam. This has prompted Bob Turner, head of Turner Investments to call out Turkey, Indonesia, Mexico and the Philippines—the TIMPs—as the next group of high-flyers.
The TIMPs’ performance in first quarter seems to support his argument.
While the iShares MSCI BRIC Index ETF (BKF) is down about 4% during the first three months of 2013, the U.S. market indexes have moved up 10%-13%. The Philippines and Indonesia, however, are topping the charts with increases of roughly 20% and 16.5% respectively—as measured by the iShares MSCI Philippines Investable Market Index ETF (EPHE) and the iShares MSCI Indonesia Investable Market Index ETF (EIDO).