The U.S. is cutting back its accommodative measures, but overseas markets are still keeping their economies flush with cash to bolster growth. Consequently, exchange traded fund investors may find more attractive equity opportunities abroad.
ETF Trends’ Tom Lydon recently sat down with Steve Cucchiaro, Chief Investment Officer at Windhaven Investment Management, a provider of ETF managed portfolios, to discuss Fed policy, rate risk and strategies going into 2014.
Since 2009, U.S. stocks have outperformed global markets because of stimulative policies enacted by the Federal Reserve. However, the rest of world is beginning to catch up.
“The Federal Reserve board has been a lot more stimulative here than the central banks in the rest of the world,” Cucchiaro said. “They are catching up, copying some of our money printing, and we see the pendulum starting to swing now where we’re still favorable to U.S. stocks, but we’ve been adding more non-U.S. stocks into the mix.”
Investors can find more information on Windhaven’s ETF managed portfolio strategies at Charles Schwab.
Watch the video below to see the full interview with Steve Cucchiaro.
To view past video interviews, visit our video section.