Mideast ETFs

WisdomTree Middle East Dividend (GULF) and Market Vectors Gulf States Index (MES)

Dubai is one of seven autonomous city-states that make up the United Arab Emirates, where GULF and MES have invested a chunk of their money. GULF, with 16% of its money in the United Arab Emirates, has lost 2% year to date, while the benchmark iShares MSCI Emerging Markets ETF (EEM) has gained 67%. MES, with a 27% exposure to the United Arab Emirates, has ticked up just 1%.

These ETFs also lagged the emerging markets index off the March lows. Since March 2, the MSCI Emerging Markets index spiked 109% vs. 27% for GULF and 42% for MES. Both GULF and MES topped in early October and sank below their 10-week moving averages on heavy volume later that month. When EEM hit a fresh 52-week high in mid-November, GULF and MES were consolidating between their 10- and 40-week moving averages. On Monday, both GULF and MES sank below their 40-week lines — an area few ETFs have seen the March lows.