Trading Insights 10/6/25

Mike Larson
October 06, 2025

Chart of the Day 📈 10/6/25: An Off-the-Beaten-Path EM Profit Play

Mike Larson | Editor-in-Chief

You know one of the biggest benefits of assembling a bunch of really smart investors and traders? Either in an actual room or online? You’ll hear about off-the-beaten-path portfolio ideas that can REALLY pay off. Take the ETF Jonathan Hoenig of Capitalistpig Hedge Fund offered for public consumption during our recent online event.

A long-time portfolio manager and MoneyShow contributor, Jonathan has had some GREAT recommendations. He named a platinum ETF at our Miami Symposium back in May. It took off within a few days and hasn’t looked back since! During last week’s MoneyShow livestream hosted in conjunction with Wolf Financial, he suggested viewers check out the VanEck Africa Index ETF (AFK).

AFK: Powering Higher Amid Broad EM Rally!

Data by YCharts

The MoneyShow Chart of the Day shows how the emerging markets fund, with only $87 million in assets, has traded in 2025. There’s a lot to like here.

AFK is stair-stepping higher, and now up more than 57% year-to-date. The 50-day moving average is acting as support on pullbacks, while the 200-day is increasing its upward slope. Volume is picking up and RSI is strong.

Dig into the details and you’ll find the ETF tracks the MVIS GDP Africa Index (MVAFKTR). That index includes local listings of companies that are incorporated in Africa and listings of companies incorporated outside of Africa that have at least 50% of their revenues/related assets in Africa.

As of late last week, AFK owned 78 stocks. Materials (34.9%) and financials (31.3%) were easily the most heavily weighted by sector. By country, South African stocks made up 34.9% of the fund, with Moroccan names next at 13.6%. It has a net expense ratio of 0.88%.

In Hoenig’s words: “Africa is a perfect example of an underowned, underinvested emerging market that’s been tossed away after many, many years of underperformance.”

Hoenig DID say investors should do their own due diligence. But he thinks AFK is the kind of pick that should work well in this market. Clearly, it has been all year long!

The “Debasement Trade”: What’s Driving it and How You Can PROFIT

Wall Street is calling it the “Debasement Trade.” But what is it? Moreover, how can you profit? My recent MoneyShow MoneyMasters Podcast with Dr. Mark Mobius provides answers. The chairman of the Mobius Emerging Opportunities Fund explains why younger investors are flocking to a handful of assets to protect their wealth from government policy-driven debasement. Don’t miss it!

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