Thinking Global, Acting Local with ETFs
July 19th at 1:03pm by Tom Lydon
Investing in global exchange traded funds (ETFs) has been a hot topic, as the global markets continue to outperform domestic markets. U.S. markets are reaching record highs, the DIAMONDs Trust (DIA) is up 12% year-to-date, but it still lags behind the top international ETF, iShares MSCI Brazil (EWZ), which is up 46%. SPDRs (SPY) is up 9%.
Recent reports show more money flowing into international ETFs, yet the number of Americans investing internationally is low. Aaron Siegel of InvestmentNews reports 62% of consumers in the U.S. do not believe the U.S. will be a world leader in ten years. Yet only 13% of Americans invest internationally. Will Americans continue to focus on "Made in the USA" or will they look globally to add performance to their portfolio?
Other top performing international ETFs include:
- iShares MSCI South Korea (EWY) – up 35% year-to-date
- iShares S&P Latin America (ILF) – up 35% year-to-date
- iShares MSCI Malaysia (EWM) – up 30% year-to-date
- Claymore/BNY BRIC (EEB) – up 30% year-to-date
For full disclosure, some of Tom Lydon’s clients own DIA and ILF.
