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In this article, we will discuss the 10 best performing country ETFs in 2022. If you want to explore similar ETFs, you can take a look at 5 Best Performing Country ETFs in 2022.
ETFs are an attractive option for investors who are looking for diversification, liquidity, and low fees. ETFs have become a popular investment vehicle in recent years. According to a report by PwC, global ETF assets under management recorded a three-fold increase in 2021 and amounted to $10 trillion, up from $3.4 trillion in 2016. Over the next 5 years, PwC forecasted this figure to grow to at least $18 trillion by the end of 2026, at a compound annual growth rate of 14.6% over the forecasted period.
Country ETFs are investment funds that track the performance of a specific country's financial markets. These funds are often used to gain exposure to foreign markets and to diversify a portfolio. Country ETFs can provide investors with access to stocks, bonds, and other financial instruments in a particular country. ETFs make it easy to add exposure to a particular country or region to a portfolio, without having to buy the underlying assets. Country ETFs are usually composed of a basket of securities from the country in question. This may include stocks, bonds, and other financial instruments. These funds are typically diversified to reduce risk. By investing in a range of securities, investors can spread the risk across different sectors and asset classes.
Country ETFs are a popular way for investors to diversify their portfolios and gain exposure to foreign markets. They are also useful for hedging against currency fluctuations and other risks associated with investing in international markets. For investors that are risk-averse and unfamiliar with international markets, country ETFs can provide a good way to get exposure to foreign markets without having to take on a lot of risk and go through the resource-intensive task of researching individual securities. This article will discuss in detail, some of the best performing country ETFs in 2022.
For investors that have the appetite for risk, finding value overseas and investing in emerging markets stocks can be the pathway to generating stellar returns in the stock market. Some of the most popular emerging markets stocks among elite money managers today include Alibaba Group Holding Limited (NYSE:BABA), Vale S.A. (NYSE:VALE), and Shell Plc (NYSE:SHEL).
Our Methodology
To determine the best performing country ETFs in 2022, we looked at some of the notable ETFs from different countries and picked the ones that performed well in 2022. Along with each ETF, we have mentioned its year-to-date return as of December 8, the expense ratio, portfolio breakdown, the index it tracks, and other salient features. Let's look at the best performing country ETFs in 2022.
10 Best Performing Country ETFs in 2022
10. iShares MSCI UAE ETF (NASDAQ:UAE)
YTD Return as of December 8: -3.16%
The iShares MSCI UAE ETF (NASDAQ:UAE) is an exchange traded fund that invests in both growth and value stocks of companies based in the United Arab Emirates. The ETF uses a representative sampling technique to mirror the performance of the MSCI All UAE Capped Index. The iShares MSCI UAE ETF (NASDAQ:UAE) has an expense ratio of 0.58% and a trailing twelve-month yield of 4.15%. The fund pays semi-annual dividends to investors.
The iShares MSCI UAE ETF (NASDAQ:UAE) has 96 holdings in total across a variety of sectors including financials, technology, energy, and industrials among others. The ETF is concentrated in the financials, communications, and real estate segments. As of December 8, The iShares MSCI UAE ETF (NASDAQ:UAE) has lost 3.16% year to date and is ranked among the best performing country ETFs in 2022.
One of the most prominent holdings of the iShares MSCI UAE ETF (NASDAQ:UAE) is Emaar Properties PJSC (DFM:EMAAR), a leading UAE-based real estate company.
9. iShares MSCI Peru ETF (NYSEARCA:EPU)
YTD Return as of December 8: -1.72%
The iShares MSCI Peru ETF (NYSEARCA:EPU) in public equity markets of Peru. The fund invests in both growth and value stocks of companies operating across a diverse range of sectors including financials, materials, industrials, energy, and others. The fund is designed to track the performance of the MSCI All Peru Capped Index and employs a representative sampling technique. As of December 8, the iShares MSCI Peru ETF (NYSEARCA:EPU) has lost 1.72% year to date and is one of the best performing country ETFs in 2022.
The iShares MSCI Peru ETF (NYSEARCA:EPU) has an expense ratio of 0.58% and pays dividends on a semi-annual basis. The fund has a trailing twelve-month yield of 6.03%. The iShares MSCI Peru ETF (NYSEARCA:EPU) has 48 holdings and a top ten holdings concentration of 71.12%. The majority of its investments are concentrated in the materials and financials segments.
One of the top holdings of the iShares MSCI Peru ETF (NYSEARCA:EPU) is Southern Copper Corporation (NYSE:SCCO). On November 28, Grupo Santander analyst Rafael Barcellos upgraded Southern Copper Corporation (NYSE:SCCO) to Outperform from Neutral and reiterated his $69 price target. As of September 30, Fisher Asset Management is the largest investor in Southern Copper Corporation (NYSE:SCCO) and has a position worth $154.64 million in the company.
In addition to Southern Copper Corporation (NYSE:SCCO), other international stocks that have attracted the attention of institutional investors and Wall Street analysts include Alibaba Group Holding Limited (NYSE:BABA), Vale S.A. (NYSE:VALE), and Shell Plc (NYSE:SHEL).
8. iShares MSCI Qatar ETF (NASDAQ:QAT)
YTD Return as of December 8: -0.73%
The iShares MSCI Qatar ETF (NASDAQ:QAT) invests in public equity markets of Qatar and uses a representative sampling technique to mirror the performance of the MSCI All Qatar Capped Index. The funds invests in stocks of companies of varied market capitalizations and operating in diverse sectors.
As of December 8, The iShares MSCI Qatar ETF (NASDAQ:QAT) has lost 0.73% year to date and is one of the best performing country ETFs in 2022. The fund has outperformed the S&P 500 in 2022, which has lost 17.25% year to date, as of December 8. The fund has an expense ratio of 0.58% and is offering a yield of 3.98%. The fund has 126 holdings concentrated in the financials, materials, and industrials segments and also has exposure to technology and healthcare markets.
7. Global X MSCI Greece ETF (NYSEARCA:GREK)
YTD Return as of December 8: -0.04%
The Global X MSCI Greece ETF (NYSEARCA:GREK) makes use of a full replication technique to track the performance of the MSCI All Greece Select 25/50 Index. The fund invests in public companies of various sizes and that belong to a wide array of industries in Greece. The Global X MSCI Greece ETF (NYSEARCA:GREK) has lost 0.04% year to date, as of December 8, and has outperformed the S&P 500. It is one of the best performing country ETFs in 2022.
The Global X MSCI Greece ETF (NYSEARCA:GREK) has an expense ratio of 0.56% and has a trailing twelve-month yield of 2.39%. The Global X MSCI Greece ETF (NYSEARCA:GREK) pays dividends on a semiannual basis. The fund has investments concentrated across the financials, consumer cyclical, utilities, and industrials segments. The Global X MSCI Greece ETF (NYSEARCA:GREK) has 29 holdings and a top ten holdings concentration of 71.90%.
6. Global X MSCI Argentina ETF (NYSEARCA:ARGT)
YTD Return as of December 8: 0.06%
The Global X MSCI Argentina ETF (NYSEARCA:ARGT) is an exchange traded fund that invests in both growth and value stocks of companies operating across a range of sectors including financials, energy, materials, and industrials among others. The fund uses a full replication technique to track the performance of the MSCI All Argentina 25/50 Index.
As of December 8, The Global X MSCI Argentina ETF (NYSEARCA:ARGT) has gained 0.06% year to date and has outperformed the S&P 500 by 17.3%. The fund has an expense ratio of 0.59% and is offering a yield of 2.09%. The Global X MSCI Argentina ETF (NYSEARCA:ARGT) has 28 holdings, majorly concentrated in the consumer cyclical, energy, and materials segments. The fund has a top ten holdings concentration of 66.79%.
Among the most prominent holdings of the Global X MSCI Argentina ETF (NYSEARCA:ARGT) is MercadoLibre, Inc. (NASDAQ:Mercadolibre Inc (MELI)), a leading Argentine e-commerce company.
On November 3, Citi analyst Joao Pedro Soares revised his price target on MercadoLibre, Inc. (NASDAQ:MELI) to $1,050 from $1,150 and reiterated a Buy rating on the shares. As of September 30, Generation Investment Management is the top investor in MercadoLibre, Inc. (NASDAQ:MELI) and has stakes worth $565.5 million.
Here is what SaltLight Capital had to say about MercadoLibre, Inc. (NASDAQ:MELI) in its third-quarter 2022 investor letter:
“Despite the economic slowdown in developed markets, our Latin American investment in MercadoLibre, Inc. (NASDAQ:MELI) had another outstanding third quarter growing revenues by 61% on a USD FX-neutral basis (GMV +32% FXN). Despite this strong growth, it also managed to expand operating profit margins to 11% (compare this to Amazon which is struggling to make a profit in its retail business).
LatAm’s e-commerce penetration is still very low compared to Asia and developed markets. MELI is mostly a marketplace but has also adopted models from elsewhere. In the recent past, it has built 3rd party seller infrastructure that has made Amazon so successful, and it is also heavily investing in a mobile based fintech infrastructure very similar to ANT Group in China. After only launching a couple of quarters ago, their advertising business is already at 1.3% of Gross Merchandise Value.”
Other overseas stocks that have received consensus Buy ratings from Wall Street analysts include Alibaba Group Holding Limited (NYSE:BABA), Vale S.A. (NYSE:VALE), and Shell Plc (NYSE:SHEL).
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Disclosure: None. 10 Best Performing Country ETFs in 2022 is originally published on Insider Monkey.
