With the exception of broadly defined commodities, all the major asset classes lost ground in the first week of October, based on a set of exchange-traded products. Stocks in emerging markets suffered the biggest setback among widespread losses in global markets.
The iPath Bloomberg Commodity (NYSE:DJP), by contrast, had a good week over the five trading days through Oct. 5, posting a 2.3% return. The gain marks the third straight weekly advance for DJP, lifting the exchange-traded note to a level that’s near its highest price since June.
Last week’s big loser: emerging-markets stocks. The latest slump in Vanguard FTSE Emerging Markets (NYSE:VWO) left the ETF at its lowest price in more than a year.
The selling in emerging markets has persuaded some investors to look for bargains. “We’re finding opportunities because of the trade war,” says Chris Mack, a portfolio manager of the Harding Loevner Global Equity fund. He tells Reuters that the fund has its highest weighting in emerging market stocks in 12 years and the lowest exposure to the US over that span.