While the S&P 500 gained 3% for 2005 (through 12/9), the MSCI Europe, Australsia & Far East Index was up 20%. U.S. investors wanting to participate in the booming markets abroad are flocking to exchange traded funds. Money going into international ETFs for 2005 (through 10/31) was up 60% from the same period last year.
ETFs provide a simple way to invest in many foreign markets. No need to exchange your dollar for pesos or choose from the small selection of American depositary receipts. Mutual funds offer exposure to regions of the world too, but they tend to be broad areas and with only one pricing a day, it makes it difficult to get out of an investment in a timely manner when things happen in the region.
Want to invest in Latin America? One option is the iShares Latin America ETF (ILF). Maybe you only want to focus on one country in Latin America, then another option could be iShares MSCI Brazil Index (EWZ). Want to bet on the euro? There is a new ETF, Rydex Euro Currency Trust (FXE). And iShares MSCI Canada (EWC) offers an opportunity to invest in natural resources.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. 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.