A measure of price swings in the exchange-traded fund tracking developing-nation shares slipped to the lowest level in at least 10 years as economic data from the U.S. and China showed signs of improvement.
Emerging-market stocks fell for a third day as power producers led declines in Brazilian equities and markets in China, South Korea and Poland retreated. Russian shares advanced on their first day of 2013 trading.
Income-starved investors have been showing plenty of love lately for exchange-traded funds that focus on U.S. dividend stocks. According to Bloomberg data, three of the 10 exchange-traded funds (ETFs) with the strongest 2011 inflows--a combined $8.7 billion--focus on U.S. dividend stocks. With an average yield of 2.8 percent, it’s easy to see the attraction. A 10-year Treasury yields 2.0 percent these days.
The exchange-traded fund tracking emerging-market stocks dropped for a second day as declining utility and resource stocks offset advances in consumer and financial shares. South Africa’s rand sank to the weakest level since 2009.
OAO Sberbank and OAO Lukoil’s American depositary receipts led a rebound in Russian shares traded in New York on prospects the companies, two of the nation’s largest, are planning to expand their investor base.