Emerging market financials have performed very well this year. After remaining resilient during the past year’s credit crisis they showed their strength when the global markets rebounded in the first quarter this year. Valuations of emerging market stocks have stretched after the strong run-up in the past few months. However compared to the developed world, emerging markets are projected to have higher growth in 2010. One of the key sectors that benefits nicely from the economic growth in the emerging markets is the financial sector.
The Dow Jones Emerging Markets Financials Titans 30 Index represents 30 of the largest emerging-market companies in the Financial sector. Constituents in this index are selected based on the rankings by float-adjusted market capitalization, revenue and net profit. As of November 30,3009 the index is up 78.28%. Chinese and Brazilian financials account for about 65% of this index.
The Top 10 components of the index and their current yields are listed below:
1.Company: Itau Unibanco Holding (ITUB)
Current Dividend Yield: 0.38%
Country: Brazil
2.Company: Industrial & Commercial Bank of China Ltd.(OTC: IDCBY)
Current Dividend Yield: 2.92%
Country: China
3. Company: China Construction Bank Corp. (OTC: CICHY)
Current Dividend Yield: 1.43%
Country: China
4. Company: China Life Insurance Co. Ltd. (LFC)
Current Dividend Yield: 0.69%
Country: China
5. Company: Banco Bradesco (BBD)
Current Dividend Yield: 0.47%
Country: Brazil
6. Company: Bank of China Ltd.(OTC: BACHY)
Current Dividend Yield: 3.53%
Country: China
7. Company: Itausa-Investimentos Itau
Current Dividend Yield: N/A
Country: Brazil
8. Company: Housing Development Finance Corp. Ltd. (HDB)
Current Dividend Yield: 0.48%
Country: India
9. Company: Banco do Brasil (OTC: BDORY)
Current Dividend Yield: N/A
Country: Brazil
10. Company: ICICI Bank Ltd.(IBN)
Current Dividend Yield: 1.24%
Country: India
The three Chinese banks listed above trade on the OTC exchanges. Banco Do Brasil started trading earlier this month on the OTC market as well.
