ETFzone Trading Specialist, Jonathan Bernstein points out that single country ETFs have been on a fire the past two years. Many have appreciated over 50%! Some examples include:

  • like iShares MSCI Mexico (EWW) and iShares
    MSCI Brazil (EWZ)
  • iShares
    MSCI Japan (EWJ), iShares MSCI Korea (EWY), and iShares FTSE China 25
    Index (FXI)
  • iShares MSCI Sweden (EWD)
    and iShares MSCI Netherlands (EWN)
  • iShares MSCI South Africa (EZA)

"Despite their
recent strength,  they remain relatively lightly
traded and for many investors even obscure. Any investor in these or other
single country ETFs should keep in mind that these funds are volatile, with
betas sometimes twice that of more diversified funds. Also because these funds
offer exposure to foreign entities, all have significant currency exposure.
These funds can be expected to do well when the dollar weakens. A strengthening
dollar is negative for these funds"

The opinions and forecasts expressed herein are solely those of Tom Lydon, 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.

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