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Invest in emerging markets
via Keytrade Bank

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The famous BRIC countries are widely known in financial markets (Brazil, Russia, India and China). But besides these countries, there are others which are also developing very rapidly.

Where western economies struggle with worse economic expectations or negative economic growth (due to the financial crisis), in the emerging markets this is still relatively successful. The population and the economy are growing, as well as prosperity. It is expected that the Emerging markets will lead the worldwide recovery and will pass certain western countries regarding average economic growth.

This means it could be interesting to invest a part of your portfolio in these countries, but someone who invests in emerging markets has to take into account also some risks: political developments, currency exchanges and other economic developments.

Numerous possibilities are available for investors interested in emerging markets, taking into account their own personal knowledge and experience in the different investment products.

Here are some possibilities. The list of examples is not exhaustive and is provided purely informative.

Trackers

A Tracker is a type of ‘index fund'. It tries to track the performance of a commodity, a stock market index or a basket of shares. It’s in fact a fund or basket of shares, which are continuously quoted on the stock market, just like shares.

In our example, the tracker will follow a certain region: the emerging markets, the BRIC countries or one specific country linked to these emerging markets.

Some examples:

Stocks

Certain shares of companies established in the Western countries profit largely from the development of the emerging markets thanks to their presence in these countries through subsidiary companies and their businesses.

In addition, the market leaders of the emerging countries are also available through the stock exchanges offered by Keytrade Bank.

Some examples:

Turbos

A Turbo is a stock market quoted investment product that works with a leverage effect, as a result of this, even minor movements of the underlying value (such as shares, indexes and raw materials) can strongly influence the value of the turbo.

On the secured site click on trading, then on invest and afterwards on turbos. Type the name of the underlying value (a share, a commodity or a stock exchange) into the search module. The system will automatically search for all turbos on the specified underlying value.

For example turbos on shares: BHP Billiton, Arcelor Mittal, Petrochina; China Life Insurance, China Mobile Ltd, Samsung, Sony, Toyota, Nyrstar, Umicore, etc.

For example turbos on stock exchanges or trackers: Lyxor ETF China, BRIC, Bovespa (stock exchange of Brazil), Hang Seng (stock exchange of China), Shenzhen (Stock exchange of China), HSCI (Hang Seng China Enterprise Index)

Funds

A fund is an investment product by which you invest in a sort of "category" of shares: fe. a specific sector, region, etc.), in our example, a basket of shares related to renewable energy. The composition of the "basket of shares" will always been stipulated by the fund manager (provider). By clicking on 'Portfolio' (once you have searched the fund) you will see the composition of the fund.

Keytrade Bank offers different funds that invest in emerging markets. You can find these by filtering on the category “Emerging Markets” in the search engine.

  • Pay attention!
  • This page does not include investment advice or recommendations, nor a financial analysis. Nothing in this page may be construed as information with a contractual value of any sort whatsoever. This page is intended for information only. Keytrade Bank cannot be held liable for any decision made based on the information contained in this page, nor for its use by third parties. Before investing in financial instruments, please read carefully the document "Overview of the principal characteristics and risks of financial instruments"