Single-Country ETFs Get a Bad Rap
The Globe and Mail published one of the most useless ETF articles I have ever read, stopping just short of calling single-country funds a blight to mankind. It even included a quote from Morningstar that said, "I'm just not a fan of the single-country ETFs, pretty much across the board. I think most long-term investors can do without them." I can't recall Morningstar ever being early, or in this case late, in exploring the positive aspects of anything related to ETFs.
A country fund, and for that matter, sector funds and individual stocks, can be dangerous or docile; it depends how they are used. The article mentions the iShares Singapore Fund (EWS) going down by 75% in 1997-98 as an example of why country funds are "so" risky.
Hmm, I can think of another country fund that nearly cut in half more recently, and that country is still besieged by deficits, debt and possibly a weakening currency. This, too, sounds like a bad bet: the S&P 500. Using the Singapore ETF narrow reasoning, wouldn't the recent blowup in Northfield Labs (NFLD) be a reason to never own individual stocks? It dropped by two-thirds in just a few days!
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV