Emerging Markets ETF Play

06/05/2009 12:01 am EST

Focus: ETFS

iShares MSCI Malaysia Index ETF (EWM) - This exchange traded fund (ETF) generally follows the price and yield performance of publicly traded securities in the Malaysian market.

EWM fell from more than $13 in January 2008 to almost $6 last October. From October until early April, EWM consolidated in a trading rectangle (box) that broke out on the upside at around $7.50.

Following the breakout, prices hugged the 20-day moving average (green line) as well as a tight trend line where it now rests. Profit taking could result in an opportunity to buy this emerging markets ETF below $8.50, but long-term buyers may want to take a partial position now and add to it on a correction.

EWM currently pays a dividend of 38 cents a share (4.33% yield) and has a net asset value of $8.90 as of June 2, reported by ETF Connect.

By Sam Collins of OptionsZone.com


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