Finding Shelter With Smart Beta Ex-US International ETFs

Investors fearing increased volatility among U.S. stocks can find some shelter from that possible storm and perhaps some bargains as well with ex-US international exchange traded funds.

Beyond traditional exposure to the widely followed MSCI EAFE Index, one of the most popular benchmarks for ex-US developed market stocks, there are ETFs dedicated to dividends and the low volatility that can help investors gain international diversity with the potential for reduced turbulence.

“Indeed, a popular exchange-traded fund that tracks large- and mid-cap equities in developed markets outside the U.S. and Canada, the iShares MSCI EAFE ETF, has advanced 13 percent so far this year. The S&P 500 fund has advanced a bit less than 6 percent in the same time. Notably, the MSCI Asia Pacific index has gained 20 percent year to date; Taiwan’s benchmark index has gained 22 percent, and European markets have broadly outperformed the S&P 500,” according to CNBC.

Investors looking for the benefit of developed markets dividend payers outside the U.S. can consider the ProShares MSCI EAFE Dividend Growers ETF (BATS: EFAD).