Performance of Asian Emerging Market Country ETFs vs S&P 500 ETF

These charts show the relative performance of Asian emerging market country ETFs versus both the S&P 500 ETF and the MSCI emerging markets index ETF.

The ETFs considered are:

  • SPY: US S&P 500
  • EEM: MSCI emerging markets
  • PEK: China
  • PIN: India
  • IDX: Indonesia
  • EWY: Korea
  • EWM: Malaysia
  • EWT: Taiwan
  • EWH: Hong Kong
  • THD: Thailand
  • VNM: Vietnam
  • EPHE: Philippines

Relative Performance:

The performance of each security in these 1-year weekly charts is divided by the performance of SPY (the S&P 500 ETF).  The MSCI emerging markets ETF (EEM) divided by SPY is plotted in black.  The vertical scale shows the performance relative to SPY.  The position of each plot line relative to the black line shows whether the country fund did better or worse than the global emerging markets index (EEM).

None of the Asian emerging market country funds outperformed SPY over the past year — EPHE for the Philippines came closest at a relative negative 3.39%.

Five Asian country ETFs outperformed EEM: Korea (EWY), Malaysia (EWM), Philippines (EPHE), Thailand (THD), Hong Kong (EWH).

Absolute Performance:

Looking at the absolute performance of each fund versus SPY, we get these charts:

Prospective Valuation Metrics and Growth Rates:

click images to enlarge


Philippines (EPHE) has the highest prospective P/E ratio at 16.2, but a prospective 5 year earnings growth rate of 16.8 for a PEG ratio just below 1.

[PEG = prospective P/E divided by projected 5-year earnings growth rate … a lower ratio is better … for value investors less than one is very good, 1-2 is OK, over 2 starts to get expensive]

The US (SPY) has a 13.8 prospective P/E and a growth rate of 10.2; generating a PEG of 1.35 .

Korea (EWY) has the lowest prospective P/E at 9.4 with a long-term prospective earnings growth rate of 11.0, with a PEG of 0.85. Indonesia has a nearly equal PEG at 0.86, but with a more optimistic growth rate of 14.5%.

Taiwan has the lowest projected earnings growth rate of 8.4%, and Malaysia is second slowest at 9.8%.

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