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.
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.