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More than $7 billion was withdrawn from exchange-traded funds (ETFs) investing in emerging markets in January 2014, and this emerging markets chart shows which countries have been hit the hardest.
The S&P 500 has dipped 4.3% since the start of 2014, but that pales in comparison to the losses experienced by emerging markets ETFs.
ETFs serve as a good measuring stick for emerging market performance because they hold many of the top stocks, securities, or bonds from that country.
The iShares MSCI Emerging Markets ETF (NYSE Arca: EEM) is designed to measure the market performance in global emerging markets and is seen as a barometer for emerging markets as a whole. In 2014, the MSCI was down 6.2%.
But the figures really get dark when singling out the ETFs that deal with specific countries.
The Global X FTSE Argentina 20 ETF (NYSE Arca: ARGT) tracks the top 20 investable companies in Argentina, or companies that have substantial revenue in Argentina. Unfortunately for shareholders, it has been the worst performing emerging market ETF of 2014, down 12.2%.
The figures don't get much better from there. These ETFs have all underperformed the S&P 500 in 2014:
- iShares MSCI Brazil Capped Index Fund (NYSE Arca: EWZ) is down 9.5% in 2014.
- iShares China Large-Cap ETF (NYSE Arca: FXI), down 9.2%.
- iShares MSCI South Africa ETF (NYSE Arca: EZA), down 8.4%.
- iShares MSCI Turkey ETF (NYSE Arca: TUR), down 8.2%
The recent sell-off in emerging markets has been attributed to slowing growth in China and to the Federal Reserve Bank's decision to taper its quantitative easing program.
But as you know – where there's crisis, there's opportunity.
Money Morning's Chief Investment Strategist Keith Fitz-Gerald has a way for investors to play these sell-offs.
What do you think about the sell-offs in emerging markets? Will these ETFs will rebound or keep plunging? Join the conversation with #EmergingMarkets and be sure to follow @moneymorning on Twitter. Don't forget to "Like" us on Facebook.
Note: You can turn the market's volatility into a trading tool. Here's how to trade the VIX, the most powerful index on the market…