International Report: Q3 2019

The Global X International Report can be viewed here. The report summarizes market and macroeconomic developments across our broad International Access Suite. For a closer look at China Sectors, see the latest Q3 China Sector Report.

As volatility in 2019 related to trade tensions, geopolitics, and fears of a global slowdown push investors into defensive assets, certain new bright spots emerge in international equity markets. Although certain markets are more sensitive to such macro headwinds, others are more insulated or dynamic to them.

Notable Performers

Up roughly 43.53% year to date (by net asset value or NAV returns), the Global X MSCI Greece ETF (GREK) Greece continues to shine in 2019 – a rare bright spot in a Eurozone coming to grips with the need for more potent stimulus and structural reforms. Improving macro data, proactive policy from the New Democracy party and a strengthening financial sector seem to have market participants increasingly bullish on Greece’s long-term growth trajectory. the Global X MSCI Greece ETF (GREK) has demonstrated what appears to be a growing optimism in an economy that’s been battered in recent years.

Euro-centric investors may also look to the EU’s northerly neighbors, using the Global X FTSE Nordic Region ETF, if they are looking to maintain their European presence but mitigate their exposure to a slowdown or trade sensitivities in the Euro-zone. The Nordic region benefits from being relatively insulated from the trade and political tensions hurting broader Europe – and could potentially even benefit from some of it as Nordic technology and communications firms become favored over their Chinese competitors by US and European policymakers.

Worst Performers

One fund that was performing well earlier this year was the Global X MSCI Argentina ETF (ARGT), which prior to August 9th returned 41.54% YTD (NAV). However, following a market sell-off prompted by the August 8th presidential primary elections in which the incumbent and market favorite (current President Mauricio Macri) lost, ARGT slipped substantially in August. While a sell-off following the primaries caused volatility to spike, markets show signs of stabilization – with the local Merval Index rising roughly 18% in September.

Market Surprises

Despite strong performance seen within Frontier Markets this year, the Global X MSCI Pakistan ETF (PAK) and Global X MSCI Nigeria ETFs (NGE) were the worst performers in our International Access Suite earlier this year. These funds garnered attention for their attractive valuations and were ranked according to among the top ten cheapest ETFs by the price-to-earnings (P/E) metric in August.1 Yet, despite their valuations, PAK and NGE began posting positive returns in late Q3, outperforming the broader International Access Suite.

Related ETFs

  • The Global X MSCI Argentina ETF (ARGT)
  • The Global X FTSE Southeast Asia ETF (ASEA)
  • The Global X MSCI China Large-Cap 50 ETF (CHIL)
  • The Global X DAX Germany ETF (DAX)
  • The Global X MSCI Greece ETF (GREK)
  • The Global X FTSE Nordic Region ETF (GXF)
  • The Global X MSCI Colombia ETF (GXG)
  • The Global X MSCI Pakistan ETF (PAK)
  • The Global X MSCI Portugal ETF (PGAL)
  • The Global X MSCI Norway ETF (NORW)
  • The Global X MSCI Nigeria ETF (NGE)

Click the fund tickers for standard performance data.  The performance data quoted represents past performance. Past performance does not guarantee future results.