When it comes to portfolio allocation strategies, foreign investments are certainly one of the main go-tos as investors look to various corners of the market for more lucrative opportunities. Adding exposure to equities from around the globe not only provides great diversification benefits, it also has the potential to produce uncorrelated returns that may be more appealing than domestic investments [see 101 ETF Lessons Every Financial Advisor Should Learn]. [click to continue…]
International investing has earned its place in portfolio construction, as both academic studies and real-world experience have supported the idea that investing outside the United States can improve returns and actually reduce risk and volatility. Investors have a wealth of choices when it comes to using ETFs for international exposure, as there are over 400 [...]
For the first time in years, a U.S. ETF was one of the highest yielding of the year, as Dow Jones US Construction Index Fund (ITB) surged ahead of the pack. While home-building in the United States is the first sign of a recovery in the domestic market, elsewhere in the world there were positive [...]
This past year shaped out to be quite the roller coaster ride for many investors; equity markets persevered through tumultuous, and seemingly never-ending, eurozone debt drama, while the economic recovery at home remains slow and steady at best. Heading into 2013, clouds of uncertainty continue to threaten investors’ confidence as the outcome of the much feared “fiscal cliff” has [...]
The evolution of the ETF universe has spawned dozens upon dozens of innovative offerings that make it easy and cost-effective to tap into strategies and asset classes that were previously out-of-reach for mainstream investors, including global markets. When picking which countries to invest in, those with high employment rates may be an appealing option, as these economies often [...]
This past year has been marked by uncertainty, but nothing compared to recent years, prompting investors to return in droves from safe haven accounts to the U.S. stock market. Investors have their eyes fixed on major indexes and other indicators to judge the overall health of our economy, but another judge of market sentiment is [...]
ETFs continue to find their way into countless portfolios as investors of all styles have embraced these innovative tools for executing long-term strategies. Although the diversification benefits offered through the exchange-traded product structure are extremely valuable, many investors often times overlook the fact that even the most diversified portfolio is susceptible to rampant volatility. The integration of global financial [...]
For the most part, many people would agree that investing can sometimes be a crapshoot. Investors often find themselves playing a game of musical chairs, shifting their assets to the seemingly most promising corners of the financial universe. Sometimes these bets payoff, while other times investors get burned and are left with a sour investment. [...]
Equity markets took investors for a roller-coaster ride last week as ongoing threats from the eurozone collided with mixed economic data releases on the homefront. Rising yields on government bonds overseas prompted ECB president Mario Draghi to make a statement reassuring investors that lawmakers would do whatever it takes to ensure the financial stability, and unity, of the debt [...]
Stock markets around the globe are off to a dismal start to the week as debt drama in Europe has managed to spill all over. Resurfacing, and intensifying, worries over the financial health of Spain, Italy, and Greece over the weekend sparked a massive sell-off overseas; authorities in Spain and Italy were even prompted to impose a [...]
Emerging markets stocks are a core holding in the portfolios of many investors: developing economies such as China and India account for a growing portion of global GDP, and a significant percentage of all global GDP growth. ETFs have become popular tools for tapping into this asset class; the low cost structures, intraday liquidity, and [...]