As investors and advisors build a well diversified portfolio, one should also consider international stocks and exchange traded funds to potentially enhance returns.
On the upcoming webcast, Sourcing Growth in a Growth-Starved World, Ted Lucas, Managing Partner and Investment Committee Chairman for Lattice Strategies, and Darek Wojnar, Managing Director and Investment Committee Member for Lattice Strategies, will make the case for harnessing attractive valuations in global equities and potentially generate improved risk-adjusted returns.
Lattice Strategies is a recent entrant in the ETF space with three international stock fund offerings that follow alternative or smart-beta indexing methodologies. [Lattice Strategies Enters ETF Space With Three Funds]
For starters, the Lattice Developed Markets (ex-US) Strategy ETF (NYSEArca: RODM) offers diverse exposure across international economies outside the U.S. Specifically, RODM tries to reflect the performance of the Lattice Risk-Optimized Developed Markets (ex-US) Strategy Index, which tracks companies in developed markets of Europe, Canada and the Pacific Region. In contrast, traditional developed market EAFE index funds exclude Canada exposure.
Additionally, RODM will try to improve risk and return potential relative to cap-weighted benchmarks by focusing on deliberate risk allocation, diversification and enhanced return potential. The underlying benchmark tries to limit volatility and drawdown risk. The ETF may also offer greater diversification benefits by de-concentrating country, currency and individual company risks. Lastly, the fund may generate better risk-adjusted returns by focusing on companies with improved value, momentum and quality.