Today’s global environment makes some wonder if U.S.-based exchange traded funds (ETFs) are the best dominating presence in a portfolio. Markets outside of North America now make up more than half of the market capitalization. For investors who want to put more of their money toward investments outside the U.S., The new Claymore/Zacks Country Rotation ETF (CRO) offers a convenient way to rotate assets throughout the rest of the world, reports Zoe Van Schyndel for The Motley Fool.
CRO’s new and different method of ranking and rebalancing holdings is a fresh way to access foreign markets. CRO comprises 200 stocks selected mostly from the MSCI EAFE Index. Country allocations are made using quantitative macroeconomic factors with a bottom-up approach. Each country is then ranked according to factors such as growth rates, liquidity and relative valuations.
CRO carries the same risks as other foreign investments. In some cases, there is lower market liquidity, higher market volatility and less complete financial information. In addition, negative political, economic or social developments can affect the ETF. As with any investment, study it carefully to ensure it fits with your investing strategy.
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.