ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Direct Indexing
    • Disruptive Technology
    • Energy Infrastructure
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Financial Literacy
    • Fixed Income
    • Gold/Silver/Critical Minerals
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Modern Alpha
    • Multifactor
    • Night Effect
    • Portfolio Strategies
    • Responsible Investing
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Volatility Resource Channel
  2. 3 Low-Fee Single Nation ETFs for Diversification
Volatility Resource Channel
Share

3 Low-Fee Single Nation ETFs for Diversification

Nick Peters-GoldenMar 28, 2023
2023-03-28

Investors will understand by now the value of looking outside the U.S. for equities exposure. Yes, U.S. stock indexes are mostly up so far in 2023, but they’re largely overvalued and beset by several looming challenges, from the recent bank crisis drama and all that portends to stubborn, sticky inflation and increasingly tight interest rates. For advisors looking for low-fee single nation ETFs to diversify away from the U.S., here are three that have performed well recently for an attractive fee.

Franklin FTSE Mexico ETF (FLMX )

Mexico has been a target of notable investor interest of late, with its proximity to the U.S. a major plus. Following the pandemic’s strain on global supply chains, Mexico has stood out to some as a more reliable and more consistently accessible manufacturing hub for U.S. firms like Mattel (MAT), expanding their footprint there.

See more: ETF of the Week: Franklin FTSE Mexico ETF

FLMX charges 19 basis points (bps) and has returned the 1,578 bps YTD, far outpacing the MSCI ACWI Ex USA Net Total Return Index at 360 bps, according to YCharts. Adding $11 million over the last three months in net inflows, FLMX may yet face the challenge of a brewing dispute between Mexico and its biggest trade partner, the U.S., but its durability YTD may make it appealing despite that factor.

Franklin FTSE Taiwan ETF (FLTW A)

Tracking the FTSE Taiwan RIC Capped Index or the same fee as FLMX charges, 19 bps, FLTW looks to semiconductor giant Taiwan for its equity exposure. Though beset by the background threat of geopolitical risk from China, Taiwan is looking forward to a new trade agreement with the U.S. FLTW has returned 1,324 bps YTD, again a far better performance than seen by the aforementioned MSCI Ex USA Index in that time.

FLTW has far outpaced FLMX in inflows over the last month, adding nearly $80 million in that time. FLTW’s largest holding is, of course, Taiwan Semiconductor Manufacturing Co., Ltd (TSM), with semiconductors remaining a key investment area not only for markets but also for governments as competition for leadership in the key tech area grows.


Content continues below advertisement

Global X DAX Germany ETF (DAX B-)

Rounding out the trio is a strategy that turns to a somewhat surprisingly resilient Europe, with Germany its key economic pillar. DAX tracks the DAX index, a market-cap-weighted, total return index of the 30 biggest securities on the Frankfurt Exchange.

While not currency hedged, DAX has still performed well against the MSCI Ex USA Index according to YCharts, returning 1,004 bps YTD. Charging 21 bps, the low-fee single nation ETF has added $4.5 million over the last three months.

With strategies available in markets around the world, investors and advisors have a variety of low-fee single nation ETFs to consider — and as the U.S. market continues to face challenges, it may be worth keeping an eye on them in the weeks ahead.

For more news, information, and analysis, visit the Volatility Resource Channel.

VettaFi is an independent publisher and takes responsibility for our edit staff, research, and postings. Franklin Templeton is not affiliated with VettaFi and was not involved in drafting this article. The opinions and forecasts expressed are solely those of VettaFi and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X