Chart Of The Day: An Off-The-Beaten-Path EM Profit Play
A long-time portfolio manager and MoneyShow contributor, Jonathan Hoenig of Capitalistpig Hedge Fund, suggested during last week's MoneyShow livestream that viewers check out the VanEck Africa Index ETF (AFK). AFK is stair-stepping higher, and now up more than 57% year-to-date. The 50-day moving average is acting as support on pullbacks, while the 200-day is increasing its upward slope. Volume is picking up and RSI is strong. As of late last week, AFK owned 78 stocks. Materials (34.9%) and financials (31.3%) were easily the most heavily weighted by sector. By country, South African stocks made up 34.9% of the fund, with Moroccan names next at 13.6%.
Are There Enough Foreign Equities ETFs?
It's the year of foreign equities ETF diversification and performance. For many ETF issuers, their international or ex-U.S. ETF strategies have led their suites for performance amid rising domestic risks.
The Top Foreign Equities ETF YTD May Surprise You
Foreign equities investing is hot this year, and it's clear to see why. U.S. equities face myriad challenges calling for diversification abroad.
AFK: So Contrarian, It Just Might Work (New Buy Rating)
AFK invests in a portfolio of stocks that do most of their business on the continent of Africa. It is the only US-traded ETF that can say that. South African gold miners are part of the portfolio but don't dominate it, there is good non-tech diversification here. AFK's portfolio sells for about 10x trailing earnings. That, the chart pattern (long-term) and the potential for this market to be discovered make it a speculative buy.
Africa Stocks May Be Close To Overtaking US Equities In 2024
American stocks are still the year-to-date leader so far in 2024 via SPDR S&P 500, but VanEck Africa is nipping at its heels. AFK, despite its pan-African mandate, is heavily weighted in South Africa stocks, which comprise roughly 40% of assets.
