Someone please give the folks at Market Vectors their due. In a year when the Jakarta Index has been ravaged beyond recognition, down basically by half, they're rolling out a new ETF (exchange-traded fund) comprised totally of Indonesian stocks.In the long view, smart indeed, to be buying when emerging markets are at a bottom. But good luck finding investors when they've essentially gone into their bomb shelters, not buying anything but the bluest of blue-chip American stocks. In fact most are ignoring equities altogether, and opting for plain old money-market funds until this vicious economic storm passes.
Market Vectors has brass balls, because many exotic ETFs have been shutting their doors this year and last, since they just haven't garnered enough investors to be viable products. I hope this isn't the case for this new ETF (managed by New York-based Van Eck Global), because apart from this new addition, I think the only pure Indonesia play out there is Eaton Vance's closed-end Indonesia Fund. Victory goes to the brave, and this launch is certainly brave.
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