Perhaps more important than those statistics is BWX’s country weightings. The fund truly lives up to its international billing as the U.S. accounts for just 0.04% of BWX’s weight. Japan and the U.K. combine of 35.6% of BWX’s country exposure. Additionally, BWX offers investors leverage to an economic recovery in the Eurozone.
Should that recovery continue to gain steam, previously high bond yields there should decline, leading to capital appreciation for European. That scenario is particularly appealing when rising U.S. yields are destroying investors’ principle. Italy, Spain, Belgium, France, Germany, the Netherlands and Austria combine for over 39% of BWX’s weight.
SPDR Barclays International Treasury Bond ETF
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of BWX.