Emerging Markets Technical Leaders [PIE] Update:
This ETF offers tactical exposure to the emerging market space, investing in 100 “high relative strength” stocks from emerging market economies. Similar to PIZ, the components and weightings are dictated by trends in relative strength rather than market capitalization or the size of a specific economy. The ETF is re-balanced quarterly as a new relative strength screening process is applied, and the ETF remains 100% invested at all times. (Launched December 2007) (more info)
For the PIE’s quarterly re-constitution, Malaysia was the largest country weighting change, as this country lost more than 5% to a current allocation of 6.22% in the PIE, while South Korea fell nearly 5%, a well, bringing the current allocation in this country to 10.53%. On the other side of the coin, South Africa and Mexico picked up more than 3% additional weighting in the portfolio while Turkey and Philippines each tacked on another 2.5%.
In terms of comparative weightings, Indonesia and Thailand remain the most overweighted countries in the PIE when compared to the MSCI Emerging Market Index. Combined, these two countries account for 26% of the PIE and they are less than 5% of the MSCI Emerging Market Index. Other notable overweighted countries in the PIE are Philippines, Turkey, Mexico, South Africa, and Malaysia. The most glaring difference in these two indices really can be seen with the exposure to the BRIC countries. The four countries that are considered “BRIC” account for more than 41% of the MSCI Emerging Markets Index while they only account for about 8% of the PIE.