September 27, 2007 at 1:00 am by Tom Lydon
International stocks, and the exchange traded funds (ETFs) that hold them, are gaining more value now that interest rates have declined. Bill Donoghue for MarketWatch says it’s a triple whammy: Rising foreign stock values, plus a weakening dollar and lowered interest rates combine to make foreign investments highly attractive. Some foreign ETFs that have been performing well lately with the triple whammy play include:
- iShares FTSE/Xinhua China 25 Index (FXI) - up 56.3% year-to-date
- iShares MSCI Brazil Index (EWZ) - up 52.1% year-to-date
- iShares MSCI South Korea Index (EWY) - up 36.4% year-to-date
- Vanguard Emerging Markets Stock ETF (VWO) - up 31.9% year-to-date
- iShares MSCI Hong Kong Index (EWH) - up 29.9% year-to-date
In comparison, the S&P 500 is up 7.6% year-to-date.
For full disclosure, some of Tom Lydon’s clients own EWH.
Tags: Brazil, China, Emerging Markets, EWZ, Federal Reserve, FXI, Hong Kong
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September 27th, 2007 at 7:29 am
Those are backward looking. What are the up and coming foreign markets that have ETFs?
September 27th, 2007 at 11:30 pm
ETF’s are great for the less risk adverse private investor, although the High street banks in the UK are keeping it quite. I have a small holding of iShares FTSE/Xinhua China 25 Index ETF and as your figures show it has increased by about 33% since I first purchased them three months ago.