Thinking Global, Acting Local with ETFs | ETF Trends

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.

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.